Unlike traditional duct fabricators, who buy their steel from a service center, Hercules sources its steel directly from mills and processes it in-house. This is a competitive advantage and a value that Hercules is able to bring to the customers they serve.

“We have three facilities that are rail fed, so that allows us to order in bulk quantities and maximize delivery. A truck delivery only gets 40,000 pounds at a time, a rail car is able to deliver 200,000 pounds,” said Pat Newland, strategic marketing development manager at Hercules Industries. 

“We bring the coils in and we have a high speed corrective leveling line and a slitting line that allows us to take that material that comes in either 48-wide master coil 60-wide master coil and really spin it down and cut it into a lot of the different widths and lengths.”

To add to its offerings, more than a decade ago, Hercules Industries launched its own line of sealants and adhesives. This addition has allowed the company to provide a wider range of products to customers while maintaining its reputation for high-quality HVAC products and equipment. 

As with their steel offerings, Hercules Industries have taken a step out of the supply chain, limiting the number of markups that impact the ultimate price contractors pay.

Aside from its products offerings — which include single and double wall rectangular ducts and fittings, spiral pipe systems and much more — Hercules Industries stands out because of its company structure and commitment to the community. 

Here, Pat, along with John Newland, regional sales manager at Hercules Industries, share more information about the company their grandfather founded and how it remains one of the top sheet metal manufacturers and HVAC distributors in the country.

Putting employees first

Companies are nothing without their employees and the work they do day in and day out. To keep employees at the forefront, Hercules Industries made a bold move a few years ago.

“It was our grandfather who started the business in 1962 and then transitioned it down to his kids after his passing. They were responsible for the strong growth over the past few decades,” John says. “Once they retired in 2019, the company changed to an ESOP, so now we are fully employee-owned.”

The decision to become an ESOP was made to keep the family culture together, with employees as owners to enhance engagement and maintain that family feel. This has become the company's competitive advantage, Pat added.  

“A lot of companies lose that family based culture as they change ownerships. And, not only didn't we lose it, changing to an ESOP enhanced it, to where it’s become a real competitive advantage,” Pat said.

In addition to the ESOP, the company created an employee hardship fund, “where employees throughout the company can opt to donate out of their own check into the employee hardship fund,” John said. 

When an employee experiences a personal or professional hardship, they can receive some of the money from the fund. A committee signs off on the donation. 

To benefit the community, Hercules Industries has the Metal of Honor fund, a 501c3 organization. “It is set up to serve the communities that we operate in on a charitable side,” Pat said of the fund. Through charitable initiatives such as turkey drives and scholarships for seniors heading into college, the company is making a difference in the lives of people within these communities. 

The commitment of Hercules Industries to its employees and the communities where it operates has made it a successful and highly respected company in the sheet metal industry.