Fogle Pump And Supply Transitions to Employee-Owned Model

Fogle Pump & Supply, Inc. has specialized in well drilling, deepwell installations, pump systems, and water treatment for more than 45 years. Recently, the company transitioned to employee ownership, giving employees stock in the business and allowing owners Rod and Sue Fogle to step back from day-to-day operations. Rod and Sue Fogle, who married in 1978, opened Fogle Pump & Supply, Inc. in 1981. Rod said prior to launching the well drilling and pump business, his family name used to be associated with car sales. “My grandpa started a dealership [in Colville] in the 1930s. My dad took it over in the late 50s. And I was being groomed to step into my dad’s shoes and go to work in that car business.” However, Rod said his parents unexpectedly died in a plane crash during his junior year of high school and his family’s friends, Virgil and Connie Hawkins, agreed to live in his family home and looked after him and his siblings. At age 19, Fogle went to work for K.C. Kane Well Drilling and learned the trade. After Rod and Sue Fogle married, Rod said he met Harold Rotter who was looking to sell his plumbing business, Bar- gain Warehouse. “They did pump systems, but no drilling work. So, April 1, 1981, Sue and I took over Bargain Warehouse,” Rod Fogle said. “Thankfully, Harold carried the con- tract because we were very young. We had just had our first baby in February of 1981, and we had no money.” Rod also thanked his older sister, Julie Fogle, for helping secure the down payment for the business. After purchasing Bargain Warehouse, the Fogles changed it to Fogle Pump & Supply, Inc., and began offering well drilling ser- vices in October of 1981 with the purchase of their first drill. Since then, the business has expanded into four locations – Colville, Republic, Deer Park, and Airway Heights – with approximately 55 employees including their children, Robert and Alaina Fogle. Rod Fogle said the idea to transition into employee ownership came six years ago, when he and Sue heard of ESOP (Employee Stock Ownership Plan) through Preferred Pump, a water well equipment sup- plier. “Their salesmen were telling us that they had just converted to employee ownership. And I’m like, ‘Really? What in the world does that look like?’” Rod said and reached out to the owner of Preferred Pump to learn more about employee ownership from the owner’s perspective. Sue said they worked with the Menke Group in California to decide if employee ownership would be a good fit for their business. “After much discussion, and knowing that our two kids were going to continue to be actively involved in the business, we chose to go with a 49% sellout to the employees,” she said. “[It took] six years’ worth of funding the trust for the employees. April 30 was the closing date that we now officially are employee-owned. So they’re co-owners with ourselves, and our son and daughter. We’re very excited about that. We think that that will continue to keep the company strong.” Sue said a benefit for the employees is that ownership will offer them retirement funds when they leave the company. “Eventually, they’ll be able to buy out their stock when they retire, and the ESOP will pay them out the funds that they have earned,” she said. Speaking to day-to-day operations, the Fogles said the employees will partake in business discussions and decisions. “[Robert and Alaina] got an executive team that they’ve moved some of these long-term employees into. They meet as a panel to discuss major purchases like equipment, and they’ve talked about the advertising schemes and stuff. So, they’ve got more input into the day-to-day management of the company, and things like that,” Rod said. Recently, Rod said, the employees made the decision to sponsor a local family for the television show “Homestead Rescue,” and will be drilling a well for their homestead project. “We’re currently doing that and that is not a service that we’re being paid for. Our employee-owned group decided that this was worthwhile, and they’re hoping that the positive publicity and stuff will be worth it for us,” Rod said. He added they will soon have their first ownership call where all of the employees will be able to discuss the company’s status and upcoming goals and objectives. As for Rod and Sue Fogle, employee ownership does not necessarily mean a one-way ticket to retirement. “I’ll be 70 in December,” Rod said, “and I’m going to be stepping into a consulting role. Sue and I, we are enjoying doing a lot of traveling and different things. So, I won’t be here necessarily on a day-to-day basis now. But in the world we live in with email abilities and all of this other stuff, you can not be at your desk, but yet still be actively involved in the business.” He added that he plans to “mostly retire” starting January 1 of next year. Sue said, “I’m struggling with [retiring] quite a bit actually, because when you work in the same place, they’re your coworkers, but they’re your friends and your social circle, too. And so it’s difficult to make that decision.” She continued, stating that she has committed to staying through June of next year to see the ESOP through its first year cycle.