The Hercules Industries legacy has always included reinvesting in the company, its people, and the community, and today, it carries this mission forward by empowering its employee-owners. Believing that active participation fuels growth—financially, intellectually, emotionally, and spiritually—Hercules’ long-term success and a thriving future for all is guaranteed.
As one of the most reliable and effective producers and wholesale distributors of premium HVAC sheet metal products and equipment serving Colorado, Wyoming, Utah, New Mexico, Arizona, Kansas, and Texas, this 100 percent employee-owned (ESOP) company is both proudly family-founded and made in the USA.
Offering contractors in the Western United States a comprehensive range of heating and air conditioning system products, Hercules Industries cultivates a continuous improvement mindset and culture within its organization, making investments in the company as it grows in order to provide resources to accommodate a wide variety of upcoming opportunities.
In terms of the company’s various expansions, acquisitions, and strategic growth plans, Hercules Industries is looking ahead with purpose and potential.
“We continue to invest in distribution centers across major cities within our regions, strengthening logistics and optimizing inventory management,” explains Southern Region Manager, Paul Torcoletti. “At the same time, we are actively evaluating both new and existing markets to ensure we meet our personnel talent needs, expand product lines, and secure the right square footage. These initiatives are central to our long-term growth as we execute our strategic plan with focus and discipline.”
Founded in Denver in 1962 by William E. Newland, Hercules now runs five manufacturing facilities and 23 sales and distribution centers in Colorado (in Denver, Colorado Springs, Fort Collins, Pueblo, and Grand Junction); Utah (in Salt Lake City, Sandy, and Ogden); Arizona (in Tempe, Phoenix, Flagstaff, Tucson, Surprise, and Show Low); New Mexico (in Albuquerque, Roswell, and Las Cruces); Wyoming (in Casper and Cheyenne); Texas (in El Paso); and Kansas (in Lenexa). Until October 2019, the Newland family owned and operated the company before finalizing the transfer of ownership to its employees on October 1, 2019, ensuring the continuation of its long-term, family-oriented values.
“Employee ownership is a privilege that offers every individual the opportunity to build life-changing wealth,” Torcoletti emphasizes. “We embrace a philosophy of continuous improvement, knowing that as we grow together, we create not only financial success but also a deep sense of self-worth and pride in our shared accomplishments.”
Hercules Industries has made continual investments in manufacturing and distribution infrastructure, customer relations, and human resources since its founding in 1962, particularly in production expansion to provide opportunities in new markets with a full range of products, from HVAC equipment to a variety of duct systems.
Since the early 1980s, the company has also invested in its manufacturing facilities, leading to substantial expansion and improved daily customer service, while striving to offer the greatest range of HVAC products on the market. Among those products are Mighty Tough sealants and adhesives, a comprehensive line, as well as Hercules’ custom commercial duct fabrication.
The company’s Commercial Division—one of Hercules’ five production facilities spread across five states supporting the company’s fabrication of commercial and residential sheet metal products—has been producing conventional and specialized sheet metal and fiberglass products for commercial and industrial use since 1999, and is now among the biggest steel fabrication facilities in the Western United States. From project takeoff and estimating to delivering the completed product to the job site, Hercules serves all the needs of its HVAC contractor clients.
Among the company’s other products are single and double wall rectangular duct and fittings, grease duct and other welded applications, spiral pipe systems (DuraFlange joints or self-sealing gasket systems), polyvinyl coated underground duct and fume exhaust systems, flat oval duct and fittings, fiberglass duct fabrication with sound boots, shearing capabilities up to 3/8” 12-foot mild steel, HVAC duct accessories, and residential and commercial equipment.
Through Hercules’ Engineered Products Division, projects are completed quickly, precisely, and affordably, thanks to skilled estimators, and are guaranteed to boost clients’ bottom lines and offer peace of mind, especially when combined with the company’s high-quality products.
Additionally, Hercules can now use its Automated Seam Welder to develop bespoke projects. Combined with its technology, work is done automatically to create whatever precise, ready-to-use product is required, whether that is grease ducts, exhaust stacks, vacuum systems, laundry/linen chutes, huge welding projects, dust collection systems, vehicle exhaust systems, fully welded venting systems, welded sleeves, or waste/recyclable material chutes.
Along with these investments in both manufacturing capacity and equipment, the company has also experienced a period of expansion, says Northern Region Manager, John Newland. “In light of the economic headwinds that we’ve faced in both residential and commercial markets, we’ve realized the importance of continuing to invest in areas that we know will produce opportunities and have long-term growth in future years.”
Last year saw the opening of a new distribution center in Phoenix, Arizona, now one of the company’s key points of distribution along with Salt Lake City and Denver, with Ogden, Utah and Lenexa, Kansas also opening in the last year and a half.
“Though we began as a manufacturer, we made the decision to become a distributor as well, making room for ourselves in equipment markets,” Newland says. “We looked at this as another avenue for growth and diversification, and as we’ve continued to expand in the equipment markets, it’s been a launch pad for us to grow in areas that we haven’t been in before. Overall, diversification has allowed us to continue in upward directions in downtimes.”
Along with investing in the company’s products and sales growth, its strategic growth plan also embraces a number of personal pillars. “It’s been a consistent investment in new branches, new products, as well as our people,” Newland says. “If we remain committed to the investments that we’ve made, we’re very confident that we’re able to continue to grow exponentially more than what we are doing today.”
Through Hercules University, each employee takes required courses, such as workplace conduct and OSHA, as well as additional professional development courses and product knowledge courses, such as Condenser 101, Heat Pumps 101, and Furnace 101. These courses have proven invaluable in helping educate employees in various areas of the company’s products and specializations.
“Training has been a big initiative for us, especially as we continue to grow into new markets and bring aboard new employees to supplement our growth. We want to be able to bring value to our customers, and arming our employees with training on product, industry updates, and tools to bring accuracy and expediency to our product delivery will all bring this to them,” Newland adds.
Operating under an ESOP means the employees also have a large say in what’s going on within the company. They’re able to join a committee that ties in with decision-making processes and participate in initiatives to boost employee morale. And an internal social media platform keeps everyone connected through announcements, be they work-related or not. “We’ve heard the saying that ‘culture eats strategy for breakfast,’ and we truly believe this. Many aspects contribute to a strong culture, but it ultimately ties back to living and acting in accordance with our company values of servant leadership, common good, and human dignity,” says Newland. “We started as a family business, and even though we are now an ESOP, we still strive to maintain the same family culture that allowed us to grow to where we are today.”
It’s that connectedness and knowing each employee plays an integral part in the company as a whole that has helped shape Hercules’ success within the industry, both as a wholesaler and a manufacturer.
“For a lot of the wholesaler distributors that are competitors, that’s all they do,” Associate Brand Manager Emily Eads says. “We produce and fabricate our own ductwork, we sell sheet metal, and we sell steel coils through our own separate Steel Division; the vast majority of wholesalers don’t have that. We’re a combo: you can do an entire HVAC job with us from start to finish. We have everything you need.”
“Because of the constant reinvestment back into the company, we have an advantage over many distributors that we pass along to our customers to allow them to be successful in the market. By eliminating another step in the supply chain, we are able to better keep up with our customers’ demands as well as eliminate risks of product outages especially during turbulent economic times,” says Newland.
Keeping goals in sight in the upcoming years will be an ongoing priority for Hercules while embracing the long-term strategic growth plan.
The company also recently launched a new ERP and a brand-new website in April at the same time, on the same day, Eads adds, closing completely for two days to revamp and transfer all data internally and externally. “We established a whole new system when it comes to managing our sales, data, and marketing, and our customers got a new face on the outside as well,” says Eads. “We’ve made a lot of investments into our e-commerce platform, streamlining the process for current customers and reaching an even broader audience.”
While getting the new website to a point where both customers and employees are completely satisfied with how it works—which includes being able to access all images and spec sheets from all of Hercules’ different vendors—is an ongoing task, there are a few other industry challenges to tackle as well. “The industry-wide refrigerant transition has been our most significant challenge in recent years,” Torcoletti tells us, adding that managing the reduction of R401A inventory while ensuring the availability and rollout of R454B and R32 has been critical to maintaining competitiveness in the market. “At the same time, rising interest rates have slowed residential new construction and project financing has faced numerous delays, adding further complexity to our operating environment.”
Hercules Industries is more than up to the task, however, ready to embrace and enhance its various expansions, acquisitions, and strategic growth plans, both in the sales and manufacturing areas, as well as through vital attention paid to employees.
“Building a world-class culture is a long-term journey that requires years of dedication,” Torcoletti says. “It demands unwavering commitment and a true team effort as we strengthen the network within our company, ensuring that every individual contributes to and benefits from the collective success we create together.”
