Otis Singleton
Lincoln Electric Company was founded by John C. Lincoln in 1895 with an initial investment of $200. John C. Lincoln's younger brother, James F. Lincoln, joined him in the business, and together they invented and launched their first variable voltage arc welder in 1911. James eventually took over management of the company from his brother in 1913, and under his leadership, the company shifted its focus to standardized products and innovation in arc welding. Today, Lincoln Electric is headquartered in Cleveland, Ohio, and is the world leader in arc welding, robotic welding systems, and cutting equipment, with a worldwide network covering more than 160 countries.
| Characteristics | Values |
|---|---|
| Name of founder | John C. Lincoln |
| Year founded | 1895 |
| Date founded | December 5 |
| Initial investment | $200 |
| Founding location | Cleveland, Ohio, U.S.A |
| Industry | Electric motors |
| Product | Direct current electric motor for industrial applications |
| Company headquarters | Cleveland, Ohio |
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What You'll Learn
John C. Lincoln founded Lincoln Electric in 1895
John C. Lincoln founded Lincoln Electric in Cleveland, Ohio, on December 5, 1895, with an initial investment of $200. The company was founded to develop and commercialize a unique direct current electric motor for industrial applications. John C. Lincoln's younger brother, James F. Lincoln, joined him in the business, and together they invented and launched their first variable voltage arc welder in 1911. This innovation propelled Lincoln Electric into a new industry that would drive its future success.
John C. Lincoln remained active in the company as its president until 1928 and served as chairman of the board for several years after. However, he handed over management of the company to his brother, James, in 1913. James Lincoln shifted the company's focus to standardized products and placed a strong emphasis on innovation in arc welding. He also instituted an employee advisory board to manage relations between workers and management and implemented a piecework pay scale that allowed workers to earn higher wages based on their performance.
Under the leadership of the Lincoln brothers, the company navigated various economic downturns and recessions. During the Great Depression, Lincoln Electric unveiled a new coated electrode, ensuring the company's fiscal continuity during challenging economic times. The company's unique incentive system, rooted in Christian ethics and people-centric values, also contributed to its stability and competitiveness during the Depression and after World War II.
Lincoln Electric expanded its operations and established international affiliations in Canada, England, and Australia in the 1930s. The company continued to thrive, becoming a global leader in arc welding and cutting. Known for its innovative excellence, Lincoln Electric has left an indelible mark on the welding industry, with its founding brothers, John C. and James F. Lincoln, shaping its culture, values, and brand.
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James F. Lincoln joined in 1913
Lincoln Electric was founded on December 5, 1895, in Cleveland, Ohio, by John C. Lincoln. John C. Lincoln remained active in the company as its president until 1928 and as chairman of the board for several years after. However, in 1913, he handed over management of the company to his younger brother, James F. Lincoln.
James F. Lincoln joined Lincoln Electric in 1913. Under his leadership, the company shifted its focus from custom-designed products to standardised ones and prioritised innovation in arc welding. James Lincoln's belief in the potential of arc welding as a manufacturing tool for the future was strengthened by the introduction of a new electrode in 1907, which resulted in stronger welds. He envisioned its application beyond repairs and across all stages of manufacturing and construction. However, he faced the challenge of convincing potential customers that welding was a superior method of joining materials.
As head of the company, James implemented several significant changes. He established an employee advisory board, comprising elected representatives from each department, to facilitate communication and manage relations between workers and management. This practice of bi-weekly meetings with the advisory board continues today. Additionally, he introduced a piecework pay scale that enabled workers to earn higher wages based on their performance. James Lincoln also played a pivotal role in developing a worker incentive plan, which included offering employees free life insurance and paid vacations. The plan's cornerstone was an incentive bonus instituted in 1934.
James Lincoln's influence extended beyond the company's internal operations. He was instrumental in Lincoln Electric's expansion into new fields, such as rechargeable batteries for electric automobiles. This diversification laid the groundwork for the company's future success and reputation as a leader in innovation. By 1911, James and his brother John invented and launched their first variable voltage arc welder, propelling the company into a new era of technology and industry.
Today, Lincoln Electric is recognised as the global leader in arc welding and cutting, renowned worldwide as The Welding Experts®. The company has expanded internationally, with a presence in over 160 countries and a comprehensive portfolio of solutions. Lincoln Electric continues to advance innovation and deliver measurable value to its customers, building upon the foundations laid by James F. Lincoln over a century ago.
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The company expanded to 15 countries
Lincoln Electric was founded on December 5, 1895, by brothers John C. Lincoln and James F. Lincoln. John C. Lincoln served as the company's president until 1928 and remained chairman of the board for several years after. However, he handed over management of Lincoln Electric to his brother, James, in 1913.
Under James Lincoln's leadership, the company shifted its focus to standardised products and prioritised innovation in arc welding. James also played a crucial role in developing the company's worker incentive plan, which offered employees free life insurance and paid vacations. Additionally, he established an employee advisory board to facilitate effective communication between workers and management.
Following its early success, Lincoln Electric expanded internationally in the 1930s, opening proprietaries and affiliations in Canada, England, and Australia. While the venture in England was sold in 1947, the expansions in Canada and Australia thrived by the end of the 1940s. After World War II, the company continued to promote arc welding and enhanced its efficiency by relocating production to a larger, more modern facility in Euclid, Ohio.
In the following decades, Lincoln Electric continued to grow and prosper. In 1968, the company expanded its factory in Euclid, and in 1977, it opened another factory in Mentor, Ohio. The company successfully navigated recessions, guaranteeing continuous employment for its workers during economic downturns. Under the leadership of George Willis, who became CEO and Chairman in 1986, Lincoln Electric expanded globally, establishing 22 plants across 15 countries and significantly increasing sales.
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Lincoln Electric is the world leader in arc welding
Lincoln Electric was founded on December 5, 1895, in Cleveland, Ohio, by John C. Lincoln and his brother James F. Lincoln. John Lincoln remained president of the company until 1928 and chairman of the board for several years after, but he handed over management to James in 1913. Under James Lincoln's leadership, the company shifted its focus to standardised products and innovation in arc welding. Lincoln Electric is now the world leader in arc welding and cutting and is known as The Welding Experts® worldwide.
The company's success is due in part to its commitment to innovation. In 1911, the Lincoln brothers invented and launched their first variable voltage arc welder, an innovation that propelled them into a new industry. They also established the Lincoln Electric Welding School in 1917, which has since instructed over 150,000 people in arc welding processes and safety techniques.
Lincoln Electric has continued to invest in research and development, allowing the company to expand its product offerings and remain competitive. In 2005, Lincoln Electric acquired the Harris Products Group, a manufacturer of welding accessories and specialty products, adding to its comprehensive portfolio of welding solutions. The company has also expanded globally, with over 8,500 employees worldwide and plants in 15 countries, enabling it to increase sales and serve a diverse range of industries.
Lincoln Electric's unique incentive system has also contributed to its success. This system, which includes a performance-based incentive bonus and employee benefits such as free life insurance and paid vacations, has helped the company to maintain stable operations during economic downturns and promote positive relationships between workers and management. By aligning the interests of all stakeholders, Lincoln Electric has been able to generate value and pursue long-term success.
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The company has a unique employee incentive plan
Lincoln Electric was founded in 1895 by John C. Lincoln and his brother James F. Lincoln. John C. Lincoln remained president of the company until 1928 and was chairman of the board for several years after. However, he handed over management of the company to James in 1913. Under James Lincoln's leadership, the company shifted its focus to standardised products and innovation in arc welding.
James Lincoln also played a key role in developing a unique employee incentive plan. This plan offered employees free life insurance and paid vacations, but its most notable feature was an incentive bonus introduced in 1934. This bonus was part of a piecework pay scale that allowed workers to earn higher wages based on their performance. The plan helped Lincoln Electric stay competitive and stable during the Great Depression and after World War II. It also contributed to the company's ability to weather economic downturns and pursue international ventures in the 1930s, opening affiliations in Canada, England, and Australia.
Lincoln Electric's employee incentive plan has continued to evolve and adapt over the years. The company has maintained its focus on performance-based compensation, with production employees having the opportunity to maximise their earnings through piecework compensation per unit produced rather than a standard hourly rate. This approach encourages workers to increase their productivity and efficiency.
In addition to performance-based incentives, Lincoln Electric has also implemented various employee development programs. These programs aim to foster an inclusive workplace, promote employee success, and provide opportunities for career growth. For example, the company offers leadership development programs, engineering and technical sales trainee programs, and skilled trade apprenticeships to help employees develop the skills and competencies needed for career advancement.
The company's commitment to its employees has been recognised internationally. In 2020 and 2021, Lincoln Electric was acknowledged by Forbes as "One of the World's Best Employers" and as one of the "World's Top Female-Friendly Companies" in 2021. The company's incentive management philosophy, which includes profit-sharing and an open-door policy, creates an environment where employees can thrive, learn, and be rewarded for their performance.
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Frequently asked questions
John C. Lincoln founded the Lincoln Electric Company on December 5, 1895, in Cleveland, Ohio, USA.
John C. Lincoln was the older brother of James F. Lincoln. John was more interested in new product development than corporate operations and soon gave up the management of the company to his younger brother. John Lincoln developed the electric arc welding machine that became the company's primary product.
An initial investment of $200 was used to develop and commercialize a unique, direct current electric motor for industrial applications.
