PODCAST: President Dave Z Tells the Story of Stellar Industries
10.17.24

Stellar President Dave Zrostlik recently sat down with podcast host Leisa Fox and Drew Larson, a partner at BrownWinick, on the Iowa Manufacturing Podcast for a comprehensive two-part series, “From Entrepreneurial Vision to Employee Ownership: The Story of Stellar Industries.” The conversations provide listeners with an in-depth look at the history of Stellar, the spirit of innovation behind its evolution and the transition from a family-owned company to an Employee Stock Ownership Plan (ESOP).
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To hear the full story, including Dave’s personal reflections and the deep dive into Stellar’s journey to becoming an employee-owned company, check out the podcast episodes below.
- Episode 1: From Entrepreneurial Vision to Employee Ownership — Explore the legacy of Francis Zrostlik and the early days of Stellar.
- Episode 2: The Transition to ESOP and Future of Stellar — A closer look at Stellar’s ESOP transition and what it means for the company’s future.
The Legacy of Francis Zrostlik
In the first episode, Dave shared the remarkable story of his father, Francis Zrostlik, whose entrepreneurial drive played a key role in shaping the economic landscape of Garner, Iowa. Francis, who founded Iowa Mold Tooling Co., IMT Transport and Stellar Industries, was not just a successful businessman — he was a visionary who deeply valued his community and his employees.
As Dave reflected on his father’s influence, he noted, “Dad always wanted to do something for the employees. When he started Stellar, one thing he wanted to do was profit sharing every year. So, from day one, even when there wasn’t much profit, there was an annual profit sharing given out. And this is just one more way that Dad was looking at what could be a way to share with the employees. That’s one thing Dad really valued a lot was the local workforce we have in Garner and the surrounding area — those were the people that made him successful and helped him be successful at IMT in the early days, and then later on at Stellar. So, he really had the greatest respect for all the people that helped him become successful in Garner.”
Through these reflections, listeners can learn how Francis laid the foundation for a culture of care, innovation and stewardship that continues to guide Stellar to this day.

Innovation at Stellar: A Legacy of Continuous Improvement
Everyone at Stellar is dedicated to delivering innovative solutions that help working people make the world work more productively. This dedication stems from the core values instilled by Francis and continues to guide the company’s direction under Dave’s leadership. As discussed in the podcast, this philosophy of never settling for “good enough” has kept Stellar ahead of the curve in the manufacturing sector.
Dave shared a powerful lesson from his father during the podcast: “Dad taught us early on to never sit still. Always strive to do something better for the customer. And if you’re doing something better for the customer, you keep yourself ahead of the competition.” This mindset of constantly seeking improvement is not just a business strategy for Stellar; it is a core part of the company’s identity.
The perpetual pursuit of better solutions may seem daunting to some, but it’s what ensures that Stellar stays competitive and continues to provide top-tier products and services to its customers. As Dave highlighted, “If you’re not innovating, you’re falling behind. We’ve made it a priority to never get too comfortable, to always push the envelope for the sake of our customers and our future.”
At Stellar, innovation is not just a momentary burst of creativity; it’s a continuous process. The company embraces change, knowing that with each iteration, they are working to not only stay ahead of competitors, but set new standards for the industry.

Perpetual Motion: The Drive Behind Stellar’s Innovation
In the podcast, Dave also vividly recalls how his father embodied a spirit of “perpetual motion” — a relentless drive to continually improve and innovate. “Always thinking of something, always working on something, always thinking of the next step. That was Dad,” Dave shared. This mindset wasn’t just about moving forward for the sake of progress; it was deeply rooted in the desire to create better products and find better solutions for customers.
One standout memory for Dave was his father’s early experiment with fiberglass when Stellar introduced its tire service trucks. “One of the things I remember was when we had the tire service trucks at Stellar, and he wanted to build a fiberglass tire service truck. So, we had a piece of fiberglass all over the shop. Dad was down there with a putty knife and sandpaper and everything else, trying to make that master mold. It was a mess. But you know what? It was a successful product, and it was a very attractive product that Dad put out.”
This story highlights Francis’s hands-on approach and determination to push boundaries, even when the process was challenging.
Understanding ESOPs: A Retirement Benefit with a Twist
In the second podcast episode, Drew Larson, partner at BrownWinick, broke down the concept of an ESOP and how it functions as a unique retirement benefit for employees. “An ESOP is an employee stock ownership plan,” Drew explained. “Functionally, it’s a 401(k) used to buy your employer’s stock. So, it’s a mechanism for a company to provide employee ownership in that business to their employees as a retirement benefit.”
Though there is complexity involved when discussing benefits plans, the core idea is simple: Rather than contributions going into a traditional 401(k) or IRA, employees are investing directly into the company they work for, aligning their retirement savings with the company’s success. This approach not only provides a retirement benefit but also gives employees a stake in the business, fostering a sense of ownership, pride and community.

ESOP: Cementing Stellar’s Legacy in Garner, Iowa
For Stellar, staying rooted in the Garner community has been central to its mission. Dave emphasized the importance of this commitment, saying, “Garner has been a foundational community for us. Dad started IMT in 1961, Stellar in 1990. Both companies are very robust and thriving and have a great population of employees and families that depend on both those companies to prosper. We just feel so much commitment to the people that have made those companies successful over the years.”
Dave explained that, as Stellar looked to the future, transitioning to venture capital ownership simply wasn’t an option. “To look at transitioning Stellar from family ownership to venture capital or something would just not be good. That’s why ESOP is the way that really cemented the company in the community. It laid the rails to make sure that we were there for many, many decades to come.”
The ESOP structure not only anchors Stellar in Garner but also rewards the dedicated employees who have helped the company grow. “It provided a mechanism to provide wealth to those employees that made Stellar their place of career choice,” Dave said. “Now they have monies set aside for them year after year. Every year they work, they grow their ESOP account to the point that when retirement does come, they can retire comfortably, hopefully staying in Iowa. But if they want to go elsewhere, they can probably live out their dream somewhere else.”
Today, Stellar has grown into a 100% employee-owned and -operated manufacturer of high-quality mechanic and service trucks, service cranes, tire service trucks, hooklifts, trailers and service truck and van accessories. Stellar’s transition to an ESOP ensures a legacy of stability and growth for both the company and its employees, strengthening its place in the community for decades to come.
Stellar was honored to be featured on the Iowa Manufacturing Podcast. As always, contact us to learn more.
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