From Air Force to ESOP Leadership: Bob Shabala’s 30-Year Journey at Niagara Specialty Metals
Oct 2nd 2025
When you meet Bob Shabala, Niagara Specialty Metals President and CEO, it’s easy to see the discipline, determination, and loyalty that have shaped his career. From his early days serving in the U.S. Air Force to leading a 100% employee-owned company, Bob’s story is one of dedication to both people and performance.
From the Air Force to the Rolling Mill
In 1993, while studying mechanical engineering at the University at Buffalo, Bob took a part-time job at Niagara Specialty Metals. The opportunity came through a professor who knew the company’s owners, Barry Hemphill and Lou Valery. After graduation in 1994, Bob was offered a full-time position, an offer too good to pass up.
Before his time at Niagara, Bob had spent five years in the U.S. Air Force as a security specialist. That military experience gave him the discipline to be on time, follow through, and put others first. These values would later shape his leadership style at Niagara Specialty Metals.
Leading with Service
Bob believes leadership is about service, a principle rooted in his Air Force days. He works to make tough, physical jobs easier and safer for employees. Listening to his team, understanding their challenges, and removing obstacles are cornerstones of his approach.
This focus on people extends beyond words. Bob ensures that everyone has the tools, training, and support to do their job well. Over the years, this has helped build trust and loyalty across the organization.
The ESOP Transformation
A defining moment for Bob Shabala, Niagara Specialty Metals, came in 2004 when founder Barry Hemphill transitioned the company to a 100% Employee Stock Ownership Plan (ESOP). This generous move gave every employee an ownership stake, strengthening morale and creating a true “we’re in this together” culture.
Employee ownership also means long-term stability. Many Niagara team members have been with the company for decades, building careers rather than just holding jobs.
Profit Sharing and Retention
Alongside ESOP ownership, Niagara has had a monthly profit-sharing program from the very beginning. Once employees become full-time, they share in 25% of the company’s net income every month. This motivates everyone to focus on quality, efficiency, and teamwork.
The results speak for themselves: extremely low turnover, cross-trained employees ready to step in where needed, and a culture where everyone wants to see each other succeed.
Navigating Challenges
Bob’s leadership has been tested and proven during major industry challenges. In 2005, Niagara’s largest customer went bankrupt, representing more than half of the company’s business. Instead of folding under the pressure, Bob and his team turned it into an opportunity, gaining the rights to sell premium materials worldwide.
The same resilience showed during the COVID-19 pandemic, when Niagara never missed a day of work and demand from the cutlery industry surged. More recently, when their biggest supplier closed unexpectedly, Bob had already lined up alternate sources to ensure uninterrupted supply.
Bob Shabala: Defining Success
For Bob Shabala, Niagara Specialty Metals success isn’t just about profit. It’s about keeping employees safe, ensuring customers receive quality material on time, and maintaining strong, mutually beneficial relationships with suppliers. This balanced approach benefits every stakeholder and reinforces Niagara’s reputation for reliability.
Looking Ahead
After more than three decades, Bob Shabala remains energized about the company’s future. With new equipment investments, expanded capacity, and a continued focus on employee ownership, Niagara Specialty Metals is well-positioned to grow in the aerospace, defense, and cutlery markets.
From Air Force service to the helm of a thriving ESOP company, Bob’s journey reflects a commitment to leadership that serves both people and performance, a true blueprint for building a strong, sustainable manufacturing business.
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