Stihl to Consolidate Distribution Centers in Cottage Grove, WI

January 26 -- STIHL Inc. officials announced Monday they will relocate the operations of Mississippi Valley STIHL of Peoria, Ill., and Midwest STIHL Inc., of Hayward, Wis. to establish a new single distribution site in Cottage Grove. The new operation, known as Midwest STIHL, a division of STIHL Inc., will serve customers throughout the mid-northern region of the U.S.

“We are extremely pleased to announce this new distribution location in order to serve our dealers more efficiently in this area of the country,” STIHL President Fred Whyte said. “We are also happy to announce that all employees from both locations will be offered employment and many are looking forward to joining us at the new location.”

STIHL selected Cottage Grove for its access to the Interstate 90 and Interstate 94 corridors, which are main routes for deliveries to STIHL dealers, Whyte said. Streamlined services from the new branch will allow for one-day shipping service to most of the 1,000 dealers in the region.

STIHL distributes its products across the U.S. through a two-tiered system, selling products through a network of independent distributors and company-owned branches. Distributors and branches, in turn, sell products to authorized STIHL servicing dealers nationwide.

Joe Hickey, the current branch manager for Mississippi Valley STIHL, will serve as the branch manager for the new operation. The new Midwest STIHL facility will occupy almost 10 acres and the consolidation of operations will take place over the course of 2015.

“We are looking forward to becoming active members of the village of Cottage Grove community and hope to participate in all the activities the area has to offer,” Hickey said.

For more information on STIHL, visit www.stihlusa.com.

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No Regrets: Stihl Stays Strong in Hampton Roads

VIRGINIA BEACH -- October 13 -- When power-tool maker Stihl was casting for a site for its U.S. headquarters 40 years ago, the choice came down to Hampton Roads, Connecticut and Arkansas.

The German manufacturer decided on this region because of its access to the port and supply of ex-military members, said Nikolas Stihl, grandson of the company's founder, who made his annual visit with other company executives to the Virginia Beach plant last week.

The Stihls have no regrets.

The 150-acre complex off Lynnhaven Parkway is among the city's biggest employers, with about 1,950 workers. It turns out 50 percent of the power tools that Stihl sells worldwide. And it plans to keep making more.

Stihl expects another record year for sales, with an even larger increase than last year's.

Sales rose more than 6 percent in 2013, both domestically and internationally, said Nikolas Stihl and Fred Whyte, president of Stihl Inc., the U.S. division based at the Beach. Worldwide, sales topped $3.3 billion. The company does not provide dollar totals for the United States.

This year, they said, the increase should reach 8 percent. And that, Whyte said, is without a major hurricane, which boosts business with its massive cleanups.

In an hourlong interview at the Cavalier Golf and Yacht Club, Whyte and Stihl - the chairman of the supervisory board of the parent company, Stihl Holding AG and Co. KG - also spoke about the challenge of finding skilled labor in the United States, the brief interlude when Whyte was Stihl's boss and why the company has steered clear of lawn mowers.

The company's distribution strategy, they said, has laid the groundwork for its success: You won't find a Stihl chain saw in a big-box store. They can be bought only at independent dealers - the United States has 8,500 - who also repair the tools.

Stihl, 54, quoted his grandfather, Andreas, who founded the company in 1926: "A chain saw is only as good as its service." Or as Whyte said of the customers who rely on Stihl's products: "If their tools aren't working, they're not making money."

That philosophy partly explains why Stihl isn't in the lawn mower business in the United States and won't enter it.

The dealer system operates on the assumption of fast repairs, Stihl said, and that would be harder to achieve with mowers.

In addition, Whyte said, big-box stores already have 80 percent of U.S. lawn mower sales. And the assembly system for lawn mowers, which Whyte said relies on multiple suppliers, wouldn't jibe with the approach at Stihl, which manufactures most of the parts for its tools.

When asked the biggest disadvantages of operating in the United States, Stihl started with the tax level. Next: The difficulty of finding skilled labor. "The quality of the school system in the United States has decreased a lot," Stihl said.

Whyte pointed to Germany's more rigorous program for training trades people. "You don't just get into a pickup truck, put a sign up and decide to become a maintenance technician," he said.

During the recent recession, Stihl benefited from the downturn in the auto industry, Whyte said. "We recruited significantly... into the Rust Belt and were able to pirate a lot of strong people out there."

Stihl occupies 2.2 million square feet in Virginia Beach. The company does not disclose the number of products manufactured, but Whyte said the plant makes more grass trimmers than any other product. Stihl's other items include brush cutters, hedge trimmers and handheld and backpack blowers.

In terms of sales dollars, 60 percent of the items made in Virginia Beach stay in the United States. The remaining 40 percent is distributed among about 95 other countries.

The plant has 141 robots, performing such tasks as inserting screws and loading pallets. That number will only grow, Stihl said: Any worker whose job becomes obsolete will be shifted to a new one.

Nikolas Stihl, who received a doctorate in mechanical engineering, worked in Virginia Beach for seven months in the early '90s as a product manager. His boss was Fred Whyte, who had taken over in 1992.

"I'm glad I approved his expense reports," Whyte joked.

Stihl described Whyte as a talented manager who is "good at recognizing the strength of his people and letting them play to their strengths." Whyte said, "We just hit it off extremely well. The two of us were instrumental in getting a new chain saw model we needed for the market."

It's still not clear how much longer Stihl will be Whyte's boss.

Whyte had planned to retire last year, but he's still in charge in Virginia Beach, and Stihl said there's no firm date for a transition.

"Mr. Whyte has been instrumental for the success of the company since 1992," Stihl said. "You've seen the growth yourself. It's not easy to replace someone in such a position. We have to be very careful in doing that."

Whyte, 67, said: "I still enjoy what I do every day." But he added that he looked forward one day to "taking care of my personal life, like getting better so I can beat my wife in golf."

Philip Walzer   The Virginian- Pilot    www.hamptonroads.com     

Stihl Inc. Hosts U.S. Acting Secretary of Commerce

October 3 -- Stihl Inc. hosted Acting Secretary of Commerce Rebecca Blank, who announced a $40 million multi-agency competition, the Make it in America Challenge, to accelerate the trend of insourcing, where companies are bringing jobs back and making additional investments here in America.

The competition, which is being funded by the U.S. Department of Commerce’s Economic Development Administration (EDA) and National Institute of Standards and Technology Manufacturing Extension Partnership (NIST-MEP) and the U.S. Department of Labor’s Employment and Training Administration (ETA), will build upon the administration’s bottom-up approach to strengthening the economy and creating jobs by partnering with state, regional, and local economies.

Stihl Announces Manufacturing Expansion, Job Creation

Acting Secretary Blank pointed out that more and more businesses are choosing to invest, create jobs, and make things here in America, and that the new initiative was designed to promote that trend. “This administration’s top priority is creating American jobs, and through the Make it in America Challenge, we will be supporting business’ efforts to expand here at home. By making competitive investments, the Challenge will help communities across the U.S. accelerate economic growth, attract business investment, and create jobs.”

Virginia Beach-based Stihl Inc., one of several manufacturing facilities in the Stihl Group, is the headquarters for U.S. operations and embodies the American built mentality. The company has steadily increased its investments in America since its founding in 1974. Starting with 50 employees that assembled only one model of chain saw, today, the company employs approximately 2,100 people nationwide, with 1,900 in Virginia Beach, VA, and manufactures more than 270 model variations of chain saws and power tools for sale in the U.S. and around the world. The majority of Stihl products sold in America are also built in America and Stihl Inc. not only exports products to more than 90 countries but produces the majority of Stihl units for the world market.

“While many American companies have chosen to move their operations overseas in pursuit of cheap labor, since 1974 we have chosen instead to reinvest in our technology, our workforce and our infrastructure right here in Virginia Beach. As a result, we have since become the number one selling brand of gasoline-powered handheld outdoor power equipment in America,” said Fred Whyte, president of Stihl Inc., who accompanied Acting Secretary Blank on a partial tour of the more than two million square feet of Stihl manufacturing facilities.

“Some people may say that American manufacturing cannot compete in the world economy. I beg to differ. American innovation, technology, and the American worker are second to none and we are proving it,” said Whyte.

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OPEI Announces 2012-2013 Officers and Directors

Alexandria, VA – June 28, 2012 – The Outdoor Power Equipment Institute (OPEI) today announced its 2012-2013 Officers and Board of Directors during its 60th Annual Meeting in Colorado Springs, CO June 20-22, 2012.

Officers for the 2012-2013 year include:

OPEI Chairman Daniel Ariens, President, Ariens Company;

OPEI Vice Chairman Todd Teske, Chairman, President & CEO, Briggs & Stratton Corp.; and

Secretary/Treasurer Paul Mullet, President, Excel Industries.

“Our new officers will lead the organization in an important year for our industry,” said Kris Kiser, President and CEO of OPEI. “A variety of legislative, regulatory and market issues will be addressed by the new OPEI Board of Directors, who bring strategic thinking and expertise to the direction we will take.”

Added OPEI Chair Dan Ariens, “The vantage point that OPEI represents is more relevant than at any other time in the organization’s 60-year history. Our members are in a unique position to provide firsthand knowledge of how legislative actions might affect the employees in this industry and the consumers who rely on power equipment products every day.”

Continuing their service on the OPEI Board are:

Immediate Past Chairman, Jean Hlay, President and Chief Operating Officer, MTD Products Inc.;

Steven Bly, Executive Vice President, Echo Inc;

Ed Cohen, Vice President, Government & Industry Relations, Honda North America;

Michael Hoffman, Chairman, Chief Executive Officer, The Toro Company;

Michael Jones, President of the Americas, Husqvarna; and

Fred Whyte, President, Stihl Incorporated.

New to the board this year are:

Marc Dufour, President, Club Car;

Peter Hampton, President, Active Exhaust Corporation; and

Lee Sowell, President – Outdoor Products, Techtronic Industries, N.A., Inc.

About the Outdoor Power Equipment Institute

The Outdoor Power Equipment Institute (OPEI) is an international trade association representing more than 84 small engine, utility vehicle and outdoor power equipment manufacturers and suppliers worldwide. OPEI is a recognized Standards Development Organization for the American National Standards Institute (ANSI) and active internationally through the International Standards Organization (ISO) in the development of safety and performance standards. For more information, visit www.OPEI.org.

New VP of Finance at Stihl

Virginia Beach -- March 20 -- Stihl Inc. has announced that Bjoern Fischer will assume the duties of vice president of finance on May 1, 2012. In addition to overseeing the financial operations of the company, Fischer’s role will also include oversight of the human resources and information services departments.

Fischer, who started with the company March 1, will be replacing Karl Angler who will move to Stihl headquarters in Germany as the executive board member for finance, comptrolling, information systems and services for the Stihl Group worldwide, effective May 1, 2012.

“While we will miss Karl greatly as he moves to his new role with the Stihl Group worldwide, we are quite pleased to welcome Bjoern Fischer to the Stihl family,” said Fred Whyte, president of Stihl Inc. “His experience leading the financial and operational departments for the U.S. division of a German company with a worldwide reach is exactly what Stihl Incorporated needs as we continue to grow.”

Fischer joins Stihl Inc. after a successful career with Siemens that spanned nearly 20 years. During his tenure with Siemens, Fischer worked in Germany, California, Texas and, most recently, in Pennsylvania where he was the executive vice president and chief financial officer for the Water Technologies business unit.

“The opportunity to work for a company with such an excellent worldwide reputation came at the perfect time, both professionally and personally,” said Fischer, who is married with two daughters, aged 11 and six. “Not only does this position allow me to utilize my experiences working in Germany and in the U.S., along with my interest in the operational side of business, but also gives my family the occasion to settle in one place.”

Fischer, a native of Rustenburg, South Africa, graduated from the University of Cape Town with a bachelor’s degree in commerce.

Stihl to Expand Virginia Beach Site, Hire 52 New Workers

VIRGINIA BEACH – December 13 -- Power tool manufacturer Stihl Inc. plans to spend $10.3 million to build an expansion at its U.S. headquarters and hire 52 new workers, city officials are set to announce today.

The expansion would allow the German company to double its manufacturing capacity for "blow-molded" plastic products, such as tubes used for blowers and fuel tanks.

"Our Virginia Beach workforce has proven its ability to meet the demands of our customers, both here and overseas," said Peter Mueller, the company's executive vice president, in a news release. "Because of the manufacturing-friendly environment in Virginia Beach, we are able to compete domestically and globally, ultimately allowing us to continue to expand our operations here."

Mueller and Stihl's national president, Fred Whyte, were in Germany on Monday, attending meetings at Stihl's worldwide headquarters, spokesman Terry Kelley said.

Stihl last month began construction of the more than 53,000-square-foot addition to its accessories building off International Parkway, said Lorraine Wagner, director of manufacturing. The existing building produces accessories such as cutting heads for trimmers.

The addition is expected to be completed by the middle of next year, Wagner said.

Stihl will spend approximately $4.9 million to build the facility on land now used for parking, $4.6 million on machinery and $800,000 for other equipment, city officials said.

The company, which already employs nearly 1,900 workers at the site, will begin hiring new workers in the first half of next year, Wagner said. The new workers will earn an average salary of $45,000 a year, city officials said.

The Virginia Beach plant produces more tools than any other Stihl plant in the world.

The privately held company does not publicize how many tools it produces. But Whyte has said sales of U.S.-made equipment, which is marketed worldwide, top $1 billion annually.

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