In 1961, Nuclear purchased U.S. Semiconductor, later
renamed US Semcor. A 1962 acquisition brought Valley Sheet Metal, a
diversified steel products company with operations in air conditioning, ventilation,
pipefitting, air purification, and sheet metal cutting. In the same year, Nuclear
acquired Vulcraft, a leading steel joist manufacturer. Although the company retained the “Nuclear” name, it did not maintain a
focus on nuclear technologies as a guiding vision for the company. In a symbolic
move in 1962, Nuclear moved its headquarters from New Jersey, the location of
the flagship Nuclear Division, to Phoenix, Arizona, home of the newly purchased
US Semcor Division.
Later acquisitions introduced yet more lines of business:
equipment leasing and office copier equipment.
The Vulcraft Acquisition
One bright point of Nuclears history was the 1962 acquisition of South
Carolina-based Vulcraft, a manufacturer of steel joists. Although Vulcraft had
virtually no strategic fit with any of Nuclears other divisions, within a few years it
would become the core of the organization. Similarly, many of the activities that
Vulcraft adopted during these early years as a subsidiary division would later
resonate throughout Nucor Corporation.
When Nuclear purchased Vulcraft in 1962, arguably the only link between
the two organizations was Thomas brief prior experience in steel. Vulcraft was a
financially attractive target, however, a market leader in its segment with annual
sales in excess of $6 million.
Nuclear lacked any management with the
experience to run the division, so 35-year-old outsider F. Kenneth Iverson was
hired to oversee operations.
Iversons management style had two primary goals: improving productivity
and fostering strong employee relationships. In both endeavors, Iverson seemed
driven by a firm belief that all employees should be treated fairly. His first order
of business upon arriving in South Carolina was the desegregation of bathrooms
and company events at Vulcraft.
The decision was unpopular at the time, but
set a standard for egalitarian principles that would continue at Nucor for decades.
Iverson also instituted measures to care for his employees. He formed a
safety committee and began strict enforcement of safety rules in the plant.
Accidents dramatically declined within one month. In addition, late in 1962, he 8
introduced the Vulcraft Credit Association. This was intended to tie employee
well-being to company performance, serving both to enhance feelings of job
security and to encourage productivity improvements in the plant.
Aside from the direct productivity improvements associated with fewer
injuries and heightened morale, the relationship Iverson fostered with his
workforce helped him to combat a much greater threat to overall profitability:
unionization. The Teamsters attempted to organize Vulcraft in 1964, a move
adamantly opposed by Iverson. He wrote memos to employees emphasizing
that job security lay with the company, not the unions, and he circulated antiTeamster literature. In addition, he threatened to fire any employee organizing a
union on the