Forging the Future: Celebrating MAGNET's 40th Anniversary

At AECO Corp, the future is forged in metal—and shared through ownership. As the oldest employee stock ownership plan (ESOP) in Ohio, AECO Corp isn’t just fabricating high-performance materials; it’s building a legacy of empowerment, innovation, and lasting impact.

Founded in 1943 by Dale Vonderau, Alloy Engineering—AECO’s flagship company—began with a simple but ambitious mission: to serve Cleveland’s industrial sector by welding and fabricating metals that few others could. But what truly set the company apart was what happened in 1974: Vonderau sold the company to a management team, officially forming Ohio’s first ESOP. By 2000, it was opened up to 100% of employees for ownership —a move that transformed the culture and mission of the business forever.

AECO Corp was later created as a unifying brand for the company’s three divisions:

• Alloy Engineering in Berea, OH – specializing in corrosion- and heat-resistant engineered products.

• Thermcraft in Winston-Salem, NC – a manufacturer of industrial furnaces and ovens.

• Mach III Machining, a precision machining facility in Cuyahoga Falls, OH.

AECO’s core purpose is clear: “Enable our employee owners to fulfill their divine purpose with kindness and integrity.” That mission drives every strategic move, from leadership development to business expansion. The company’s bold goal—to help every employee owner to retire with an equal or better standard of living—is more than just aspirational; it’s operational.

Culture is the company’s true differentiator. With a highly engaged team, collaborative leadership, and a deep sense of shared responsibility, AECO lives its values on the shop floor and in the boardroom. “I’ve never been in a company where the vast majority of employees care this much about the outcome,” said Watson. “They have a vested interest—and it shows.”

AECO set an ambitious target to become a $50 million company by the end of 2025. With guidance from MAGNET and the use of the Scaling Up methodology, AECO reached $54 million in revenue by 2023, two years ahead of schedule. Through strategic planning, operational support, and even plant layout services, MAGNET’s partnership has helped AECO grow smarter and faster.

“The MAGNET team doesn’t just advise,” the AECO team emphasized. “They’ve done it in their careers." Understanding what it’s like to be in the trenches makes all the difference.

As AECO continues to evolve, its commitment remains the same: to grow responsibly, serve customers with excellence, and enrich the lives of its employee-owners.  To learn more, visit AECO and watch the spotlight video. 

Click Here To Watch Lee Watson from AECO, Corp.