Marian, Inc. Will Remain a Private, Family-Owned Company
Editor’s note: This Marian, Inc. company update was written in 2016 and remains true today.
We begin bluntly: Marian is not for sale. Marian has no plans or intentions to change the business from a private, family-owned company. Each point that is explored in this article will further demonstrate the reasons behind the plan and strategy of the company.
A Family Business
Mr. Hugh Knoll started Marian in 1954. After Mr. Knoll’s untimely death in 1971, Eugene S. Witchger, a friend of the Knoll family, purchased the company. For the past 50+ years, Marian has been operated and owned by members of the Witchger Family in combination with other non-family executives. (To read more about our history, check out the company history page.)
The outline below displays positions the Witchger family members have held or hold within the company as of 2017.
Witchger family members involvement at Marian as of 2017.
As reflected, the majority of the Witchger family are Marian shareholders. In addition, there are other non-family Marian executive shareholders. Buying Marian would require a suitor to convince all of the Witchgers and Marian executive shareholders to sell their stakes.
Tom Sr., Gene, Brian, Holton, William, and Bill Witchger pose for a picture at the 2015 Christmas party.
Motivation Provided by Legacy
Marian leaders and shareholders have a passion for the business that goes far beyond pay or job titles. Witchger family members have a passion to expand and improve their inherited business before passing it onto the next generation. This desire leads the Witchgers to place corporate interests before personal ones. Their hearts are engaged in what they’re doing for the company.
The Witchger passion trickles through the entire organization and lives in all the Marian leaders and employees. With a legacy to live up to and pass on, our leaders are motivated more than any hired executive. In addition, the Marian companies are all structured so that each location’s President owns a portion of the business. This further drives the personal investment that has been key to the company’s success.
An Intimate Knowledge of the Business
Many of the Witchgers worked at Marian as a summer job while students where they took on maintenance jobs, worked in production, and completed engineering or sales internships. It is a “Witchger family rule” that family members must work outside of the company to gain knowledge of other businesses prior to working at Marian, and many have made the decision to rejoin the company. Given their long-term exposure to the company, the leading members of the Witchger Family have an intimate knowledge of business that far outweighs an outsider. This has given and will continue to give Marian a competitive edge in developing cutting-edge manufacturing technologies and successful business strategies.
Long-Term Strategy and Growth
Top executives and board members of publicly held companies are often focused on boosting share value and quick returns for shareholders. In contrast, Marian has continued to focus on and invest in long-term strategies. Marian leaders have structured the company financially so that it has the ability to take on long-term risks. For example, in 2016 Marian received its first order on a project they began heavily investing in 2010. The decisions behind acquisitions and opening new locations have all been motivated by long-term strategy and expectations.
As a privately held company, Marian has also continued to reinvest in the business. The motivations for this are two-fold: In growing the business both in locations and technologies, Marian will continue to provide the highest-quality parts and excellent service to customers. This has given us an excellent reputation in the industry. Additionally, the Witchgers know their family is in it for the long haul, which motivates them to continue to build-up the company to leave a thriving enterprise for future generations.
Quick Decisions
Family run businesses can move far faster than corporate bureaucracies. Time and time again, Marian has exercised its ability to make quick decisions, even risky in nature, in order to fulfill a customer need. This often gives Marian an edge over competition in its ability to respond quickly to customer requests.
Ethical Business
Marian leaders have structured the company financially and culturally to do business ethically. At Marian, ethical business comes first.
We can afford to do things the right way; we don’t cut corners.
Customers asked Marian to open a facility in China so Marian could better support the growth and expansion of their facilities in Asia. In 2003, Marian decided to open a manufacturing facility in Suzhou, China. Suzhou was chosen because of its central location in the fast-developing eastern part of China as well as its foreign business friendly culture.
Marian had concerns about beginning a China operation because they had no desire to lower their ethical standards in order to be successful. If sacrificing the Marian values was the only way to succeed in China, then the Marian leadership was willing to close the business and bring the executives home. We believed from the very beginning of the China start-up that the core values that created success in the U.S. were the same core values that would ensure success in China. This recipe for success has proven to be true as the Marian Suzhou business has flourished and has become a valued partner for our customers in China. Marian Suzhou continues to follow these founding ethical business practices that all Marian locations follow.
Marian Indianapolis Employees at the 2016 Summer Picnic.
Breeding Employee Loyalty
Marian leaders demand a lot of their employees and give plenty back in return. Marian offers employees a quarterly bonus in which the total payout is based on the profitability of the company. The Witchger family treats employees like they’re a part of the family. They hold monthly employee appreciation days where they provide lunch and recognize employee achievements.
Additional employee gatherings held throughout the year include the Fiscal Year-End Corporate Dinner, Summer Picnic, Thanksgiving pitch-in, and Christmas Party. The extremely long tenure of many Marian employees is proof of their loyalty. For example, 10% of employees at Marian Indianapolis have worked at the company over 25 years, 15% have worked for over 20 years, and 30% have worked at the company for over 15 years. Similar employee tenure statistics can be found at all Marian locations. To put this in perspective, the Bureau of Labor Statistics reports a median tenure of 4.2 years for salary employees in the US in 2016.
Coping is in the Blood
Marian is structured to weather difficult economic conditions. During the 2008 economic downturn, all leaders cut their pay 20% in order to maintain employees – including the President, Bill Witchger. Such actions by the leadership add to employee loyalty. During difficult times, Marian’s ability to be nimble and innovative has aided in surviving these times. It has also enabled the company to experience strong growth in the times since.
Beyond the Business
In addition to cultivating a successful business, the passions of the Witchger Family reach far outside of the company. Social responsibility and corporate philanthropy are qualities that are highly valued and practiced by Marian leaders. Marian supports a multitude of charitable organizations through donations of event space, financial contributions, and dedication of time. A recent example is the launch of Marian’s Guided Gifting Program. This program allowed each employee to choose a charity in which Marian would donate a 10x match. Through this program, employees held an active role in giving back to organizations within their communities, an experience that matters deeply to the Witchgers.
Many studies show that family owned and privately owned businesses out-perform similar sized competitors. It should be clear why Marian has no intention of selling or to modify its current ownership structure. Selling is not part of the company’s long-term strategy. In other words, selling is not in-line with the culture that has led to success over the past 70+ years.
