In the world of manufacturing, there are companies that simply produce goods, and then there are companies that build a legacy, not just with their products, but with their people. Columbia Forest Products, North America’s leading manufacturer of hardwood plywood and veneer, is a shining example of the latter. Their story is one of resilience, dedication to employees, and the power of shared success.
It all began in 1957 in Klamath, Oregon, as a softwood mill founded by the Honzel family. The early days weren’t easy, marked by a softening market. It was during this challenging period that the owner made a pivotal promise: if the company ever achieved success, its profits would be shared with all employees. This promise, born in the midst of adversity, laid the groundwork for what would become Columbia’s defining characteristic: an Employee Stock Ownership Plan (ESOP).
Klamath was eventually purchased by Columbia Plywood Corporation in 1963. After purchasing two additional veneer operations, the company was sold to its employees in the form of an Employee Stock Ownership Plan (ESOP)
in 1976. This dedication to employees is evident in Columbia’s core values called “S.A.W.S.”
- Customer Service
- Absolute Integrity
- We are Family
- Share the Success
Columbia currently has 2,200 employees across the U.S. and Canada. Their corporate headquarters are in Greensboro, NC. According to Abby Carte, Digital Marketing Manager at Columbia Forest Products, “It is not unusual to find whole families working at Columbia Forest and to continue to refer friends and family to work here”. In fact, Abby’s own father works for the company at their Craigsville, WV location. Each location is supported by the corporate Foundation and has a locally staffed Caring Team. The Columbia Foundation funds these teams, which make decisions about donations and volunteer their time to support local causes.
Expanding the Family: The Power of the ESOP
As an S-Corporation, the tax advantaged status allows mature ESOPs to accumulate cash once initial loans are repaid. This financial strength allows Columbia to make strategic acquisitions and include new businesses in the ESOP. The focus has shifted to acquiring companies in “adjacent or complementary industries,” according to Rick Brewer, Corporate Development at Columbia Forest.
A requirement for any acquisition is that the target company must embrace becoming an ESOP. J.C. Pallet, acquired in November 2022, is a recent success story.
J.C. Pallet: A Legacy Continues, a Future Brightens
J.C. Pallet was a family business started 50 years ago by Holly Miller-Bopp’s parents. Holly started in 2001, working in every role, including building pallets, working her way up to President. Holly‘s Dad is now 80 years old. According to Holly, “Sometimes it is hard working for family and we wanted our kids to have options”. In fact, across the U.S., fewer children are deciding to work and take over the family business. Private equity firms and other pallet companies showed interest, but the owners were concerned for their long-term employees
One of J.C. Pallet’s requirements for being acquired was that they be vision aligned. When Columbia Forest Products approached them, they realized they would become part of a larger, caring family. Being employee owned, Columbia puts employees first. According to Holly, they didn’t lose any employees when they sold.
The impact on J.C. Pallet employees has been significant. They received their first ESOP statements this year. As Holly explained, employees are learning that money is put away on their behalf, and they do not have to contribute their own funds. For a small, family-owned business that couldn’t offer a 401(k), this is a significant benefit. When a J.C. Pallet manager recently passed away, the free life insurance provided by Columbia made a crucial difference to the family
Being part of the Columbia ESOP means more than just a paycheck. “Morale is so much better and employees feel more vested,” says Holly. “They take care of tools and equipment, and make sure new people are properly trained as they know their efforts will help the company, which will have a direct impact on their own retirement and benefits”. Deciding the future of a family business can be difficult, but J.C. Pallet’s journey with Columbia Forest Products demonstrates the potential of aligning with an employee-owned company. It was a match made in heaven, proving that when a company invests in its people, everyone thrives.
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