After 70 years serving Urbana, Ohio, Rob Fetz was ready to retire from his business, Fetz Plumbing. His sons had other careers so they were not an option for taking it over. And selling his company to outside investors was out of the question.
But there was an alternative. He brought two Ideal Plumbing & HVAC cooperative employees on board last year. They knew the industry and were in search of the right company to buy and convert into a cooperative. Fetz had a solid foundation. LEAF helped fund and navigate the process of becoming a cooperative. Alan Singer from LEAF provided critical guidance. “Alan pushed us, asked us questions to anticipate what we needed to know,” explained one of the workers, soon-to-be-Fetz-worker-owner.
“I wish I’d thought of that years ago,”Fetz owner, Rob, said when asked about the idea of selling to the workers. Rob and his son liked the idea so much that they have expressed interest in investing some of their own money into the cooperative through preferred stock, maintaining a connection to the business while transferring control to the employees.
Bucking the Industry Trend
The transition to employee-owned is timely. Private equity firms are acquiring family-owned plumbing, heating, and cooling contractors, consolidating them into large corporations that extract wealth from the local communities.
According to the US Small Business Administration, small businesses generate 1.5 million jobs annually, making up 64% of new jobs in America. Small businesses contribute 44% to the US economy. Worker cooperatives keep money in the community. They defend against consolidation by:
- Preserving Local Ownership: Keeping jobs, services, and economic benefits in the community
- Enhancing Job Security: Addressing the skilled trades’ hiring and retention challenges
- Engaging the Workers: Equipping employees with business ownership knowledge and decision-making skills
The newly formed Fetz cooperative has already been invited to speak at the Urbana Rotary Club, to share their experience with business owners considering succession plans.
For Fetz Plumbing, Heating, and Cooling, worker ownership ensures that a 70-year legacy of community service continues through the same workers who helped build it.