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September 14, 2004
One Contrary Entrepreneur Keeps Jobs in US
While many shoe manufacturers long ago gave up on making shoes in the US, FastCompany tells about one entrepreneur who hasn't followed that trend. John Stollenwerk, president, chief executive, and owner of Allen-Edmonds Shoe Corp., is among the last remaining shoe manufacturers in America. He employees about 700 people in his company, which located in Wisconsin (see Packers beat Carolina in opening MNF).
While many have held him up as a true patriot, Stollenwerk is just responding to his market. Customers have come to appreciate the quality that Allen-Edmonds produces and the service they can provide to their customers. Take as, an example, banking. Predictions that soon there might only be two or three mega-banks have proven wrong. The market has needs not being met by the mega-banks and entrepreneurs are responding with many new (and successful I might add) banks for us to choose from. It takes vision and commitment to that vision, but like those worms and shrimp that were discovered living off the gas vents in the bottom of the ocean, entrepreneurs can flourish in remarkably hostile environments.
"This unassuming leader isn't refusing to go overseas because of some abstract principle. It's all about the shoes, and he still believes that Allen-Edmonds can make them better -- and serve customers faster -- in the United States."
What is most remarkable to me is the courage that Stollenwerk has shown in sticking to his vision for the company that he purchased in 1980. "'John could take this all offshore tomorrow, and we could probably double -- maybe even triple -- our profits,' says Mark Birmingham, Allen-Edmonds's COO. 'But he knows that's probably shortsighted'....That philosophy -- built around a willingness to sacrifice short-term gains for the long-term good of his organization -- is what defines Stollenwerk's quiet kind of courage."
Posted September 14, 2004 06:42 AM
Comments
You do get a local “kickback” if you have a plant EMPLOYING 700 American workers. Of the people working there, they are going to buy their shoes from the company. The people of the town are going to buy the shoes. Their parents, grand parents, etc are going to buy the shoes. That is a little market that companies don’t consider. It is just like someone that works in the Ford plan in Tennessee. I’ll drive a Jag (Ford) over a Lexus or BMW. You won’t find a family member or friend driving another car either.
Also I believe that a large percentage of Americans will buy a product because it has the American flag label. I drive a ford because there is a Ford plant in Tennessee (I do recognize there is 49% foreign parts in my car). I use a Dell computer at home because I have friends that work in the plant. I know that that is just an insignificant portion of their sales, but it is something. I’ll spend up to 25% more for a product made here.
I do recognize that if jobs are outsourced overseas that it “frees up” American workers to work “higher level” jobs. However, I also recognize coming out of two manufacturing businesses that not everyone is truly cut out to work a “higher level” job for whatever reason. I am not belittling those workers, there are some very smart people that work in factories (I hope I was one of them), but not everyone was given the same talents. I am proud that they have jobs that they can work.
Posted by: Daniel B. Rose at September 17, 2004 12:22 PM
It is refreshing to see an American businssman opt for keeping jobs in the United States. He is putting the benefit some of his stakeholders (employees) above the bottom line. Stollenwerk definitely had a clear vision of what his company should be like, and that included keeping (all of) it in the U.S. I think that it is commendable that he has stuck by his vision, even thought he could double his profits by outsourcing. Good for him.
Posted by: George W . Ward at September 29, 2004 11:18 AM
at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
