Congressman Fitzpatrick Visits NewAge(R) Industries to Learn More About the Rewards of ESOPs and How They Can Help Other Small Business Owners
Southampton, PA, July 31, 2014 --(PR.com
)-- Congressman Mike Fitzpatrick visited NewAge Industries last month to hear about the workings of an ESOP company directly from its employee-owners. NewAge, a 60-year-old manufacturer of plastic and rubber tubing, high purity Single-Use fluid transfer systems for the biopharmaceutical industry, and RFID products, employs over 100 people.
The Congressman, who represents Pennsylvania’s 8th congressional district, took part in a town hall style meeting to discuss the benefits of Employee Stock Ownership Plans and their potential to help other businesses. NewAge team members from several departments and with various levels of seniority, job responsibilities and length of employment took part.
“The ESOP has given us a new view on retirement,” said Jeff Johnson, Director of Software Solutions and a 23-year employee. “Many of us have talked about how the balances in our ESOP retirement accounts have outpaced our 401(k)s. And the 401(k) plan has been around for over twenty years. The ESOP is only eight years old.”
“Retirement security is a big issue,” stated Congressman Fitzpatrick. “We’re living longer, and healthcare is getting more expensive. If you’re trying to retire on Social Security alone, it’s going to be difficult. Very few companies offer pensions today, and that’s another reason why ESOPs are an important option.”
NewAge’s ESOP benefits the company and its employee-owners both before and after retirement. Before retirement, the plan helps generate a pride-of-ownership culture, where each team member recognizes the value of every customer. Employee-owners understand that a customer is not merely a company name and an account number; there’s a person behind each inquiry and order.
Marty Golin, Technical Sales Representative, 11 years, looks forward to retiring in two years. Golin commented that although he has increased his 401(k) contributions since his children have graduated college and his expenses have subsequently lessened, years of less-than-ideal contribution amounts are a challenge to overcome.
“The ESOP will mean the difference between struggling and not struggling when I retire,” said Golin.
NewAge’s employee-owners feel that ESOP retirement plans can be a good option for businesses. Some current employee-owners work with companies whose owners are aging, and there’s concern that the leadership teams of those companies haven’t considered an ESOP as a viable business transition.
“The owners of many small companies are unaware that they have this opportunity to receive money from the sale of their company while keeping the company intact,” said Cathy Wallace, Director of Purchasing and Materials, 25 years. “The owners may simply sell the company to a competitor, putting their employees and American jobs at risk.”
“The best way to take care of a company’s employees during a sale is to make sure the employees themselves own the business, not somebody else,” added the Congressman. “There’s a real opportunity to use NewAge as an example and say ‘Look how well it’s working, and it can work for you, too.’ ”
“It’s our responsibility to teach team members and other businesses about the value of ESOPs,” stated Ken Baker, CEO. “It’s more complex than selling a company outright. But the benefits—continued business operations, stability, employee loyalty, retirement earnings, maintaining American jobs—far outweigh the intricacies.”
Wallace added, “We’re able to compete as an American manufacturer because we have an ESOP strategy. We’re all business owners, and we’re heavily invested in the future of NewAge.”
“You’re obviously very proud of this company,” said Congressman Fitzpatrick, “and you should be.”
For more information on NewAge Industries, its ESOP and its successes, contact the Fluid Transfer Specialists(R) at NewAge Industries, Inc., 145 James Way, Southampton, PA 18966; phone 800-506-3924 or 215-526-2300; fax 800-837-1856 or 215-526-2190; e-mail: email@example.com; or visit http://www.newageindustries.com/esop.asp.
About NewAge Industries
In business since 1954, NewAge Industries manufactures plastic and rubber tubing in both reinforced and unreinforced styles. The company offers an overall product quality rating of 99.8%, provides custom extrusion and fabrication capabilities, and services customers worldwide. NewAge Industries maintains a large inventory and prides itself on same-day shipment of 99% of orders for its core product lines. In 2006, NewAge initiated an ESOP (Employee Stock Ownership Plan) for the benefit of both its employees and customers.
The AdvantaPure(R) division of NewAge Industries is ISO 9001:2008 certified and specializes in high purity tubing, hose, single use process manifolds and systems, and other molded components for the pharmaceutical, biomedical, food, beverage, and chemical industries. All products are manufactured, stored, and shipped using the cleanest methods possible to ensure unsurpassed product purity. Automated product identification systems, including gamma stable RFID tags and labels, are offered by NewAge’s Verigenics(TM) division.
NewAge(R), NewAge Industries AdvantaPure(R), Verigenics(TM), and “Fluid Transfer Specialists(R)” are trademarks of NewAge(R) Industries, Inc.