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$86 million in assets.
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ORC Industries president Barb Barnard speaks from the podium Tuesday at the Company's open house and 40th anniversary celebration.
PETER THOMSON photo |
The source: federal defense contracts for everything from white sailors’ hats to waterproof ponchos, made by workers with disabilities in Wisconsin and Texas.
But the days of big government contracts are ending, ORC President Barbara Barnard said Tuesday in an interview. And ORC’s future is in commercial products, not defense.
“We have to diversify into commercial products,” Barnard said. “We’re buying small companies that are labor intensive, that make products that are difficult to ship from China.”
In January, ORC bought Redfeather, a Colorado company that makes aluminum snowshoes, and moved it to a former Northern Engraving building along Commerce Street a little south of ORC headquarters in La Crosse.
Twenty five ORC workers on two shifts now build 11 models of the high-end snowshoes, said Tim Rieck, who was giving tours of the plant Tuesday. “Most of the products ship between September and January, and we’re building inventory now,” he said.
These labor intensive products will take our folks into new jobs, Barnard said. ORC won’t be hiring many new workers, but will concentrate on creating jobs for its existing workforce in Wisconsin and Texas.
ORC also is moving its warehouse to a second former Northern Engraving building in the industrial park, freeing up space for more commercial expansion.
In July, ORC will announce acquisition of another company, which she did not identify. “It will be obvious why it can’t be made in China,” Barnard said.
“We’re always trying to grow and find more options for the people we serve,” said Shirley Holman, chairwoman of ORC’s board.
Money for the acquisitions comes from ORC’s profits over the years on government contracts. Its net assets have grown from $15.5 million in 1998 to $86 million in 2005, according to federal tax records.
That big bank account, and Barnard’s $375,000 annual salary, have drawn criticism from some people concerned that ORC pays some of its disabled employees a sub-minimum wage, which is allowed under federal law.
“Thank god we have the reserve money we have to expand,” Barnard said, at a time when the government is cutting back on contracts.
In 2005, ORC also contributed $636,645 to Barnard’s deferred compensation fund. Since 2002, ORC has put away $2.22 million for Barnard, which she will receive only if she stays at ORC until retirement.
“As for my wages, it was all reviewed by PricewaterhouseCoopers on two different occasions,” she said. “We have done nothing illegal, and we won’t do anything illegal.”
“We’ve got a company La Crosse, Wis., and Brownsville, Texas, should be proud to have,” Barnard said.
Those who criticize ORC’s pay policies for disabled workers “don’t understand,” Barnard said, defending the system. ORC employees earn money and also benefit from socializing with other workers.
If some ORC employees with disabilities earn too much money, they could lose federal disability benefits.
“I would love to see the federal government not penalize these folks for making more money. A number of people quit because they made too much money,” Barnard said. “It’s a double-edge sword.”
“We’re not a regular company. We have parties. We have soft supervisors,” Barnard said. “We’re not a hard-pushing company because of the people who work here.”
That atmosphere is perfect for Jim Suter, 46, of Onalaska, who has worked for 18 years at ORC, said his father, Bob Suter.
Suter described his son as a “slow learner with a high IQ” who can’t work under pressure. He earns about $100 a week on piecework, said his mother, Esther Suter.
“If he wasn’t in a place like this, he wouldn’t be able to function,” Robert Suter said. “It’s the staff here. They take care of him.”
Reid Magney can be reached at (608) 791-8211 or rmagney@lacrossetribune.com.
