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LETTER FROM HYPERTHERM | ||||
 In October, we celebrate National Ownership Month at Hypertherm. Why? Hypertherm is an ESOP (Employee Stock Ownership Plan) company. All shares of the company are owned by associates (our preferred alternative to “employee”), and all associates with enough qualifying time become owners. You might ask why I mention this in a customer newsletter. It is because ownership really does matter in where a company places its focus and how it serves its customers. Where do you suppose a company trying to beat a quarterly forecast to Wall Street places its ultimate priority? At Hypertherm, every associate shares in annual profits and receives an annual allocation of company shares held for the long term. As both associates and owners of the company, we all have a direct stake not just in the daily success of the company, but also in the long-term performance and sustainability of the enterprise. I’ve also mentioned in past letters our pride in being a thriving U.S. manufacturer. In our view, that is also built on our associate ownership. Many Americans bemoan the loss of manufacturing to countries like China, but the fact is that U.S. manufacturing output remains nearly tied with China, even though our manufacturing workforce is only about a tenth of the size of China’s. Translation: American manufacturing worker productivity is about ten times higher. That’s certainly partly due to the greater deployment of manufacturing technology in the U.S., but it’s also directly related to workforce stability and education. But that advantage will shrink without continuous improvement and reinvestment. In our view, granting ownership to all associates is not an act of altruism or idealism. It is a winning strategy, along with our focus on superior product technology and advanced manufacturing, for total team engagement in world class productivity, driving sustained global competitiveness and leadership. The bottom line is that associate-owners (associates who are owners) also have a higher satisfaction in their work and their workplace. Consequently, we all care more about how customers feel about our company, and we take more pride in providing you with a winning experience. We hope you notice. Sincerely,  Evan Smith, President |
