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Publisher's Profile
Fred J. Whyte, Stihl Inc.
by Doug Forshey
Publisher, Virginia Business
March 2006 Name: Fred J. Whyte
Title: President
Company: Stihl Inc.
Born: Vancouver, British Columbia
Education: Seattle University, University of Iowa
Current residence: Virginia Beach
Q: How large is your U.S. operation?
A: We have over 1,300 employees here at our Virginia
Beach facility. By including our five company-owned
branch operations, the total is about 1,600 employees
throughout the U.S. Stihl is the largest selling
brand of chain saw in the world. But we’re
not just chain saws. Approximately 35 percent of
our sales are from chain saws, and the other 65 percent
comes from the rest of our product line. Our products
are distributed through 8,000 independent servicing
retailers. To be a Stihl dealer, you must provide
service and that’s what differentiates our
product from other brands.
Q: How did you get started?
A: My dad worked for Stihl for 20 years and I followed
him when I got out of school, beginning as a territory
manager, working the central territory, from Louisiana
to the Dakotas. Eventually my territory grew, and at
one point he and I covered everything west of the Mississippi
for Stihl.
CAPSULE
LOOK AT STIHL
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Stihl
expanding and looking for qualified workers
Stihl is a global manufacturer of handheld gas
and electric outdoor power equipment.
The founding
company, Andreas Stihl AG, was created in 1926
by Andreas Stihl, the recognized “father
of the chain saw.” The U.S. subsidiary, Stihl
Inc., was established in 1974 in Hampton Roads
and today sits on more than 73 acres in the Oceana
West Industrial Park.
The company employs more
than 1,600 workers in the United States, and Stihl’s
products are protected by more than 1,000 patents.
Stihl recently announced a $78.4 million expansion
of its Virginia Beach manufacturing facility, which
will add 300 new jobs by 2007.
The U.S. is the
largest single market for Stihl products, and the
Virginia Beach facility has won many awards for
quality and productivity.
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Q: Why did Stihl choose Virginia Beach for its only
North American manufacturing operation?
A: Stihl was originally manufactured in Germany and
imported to the U.S. In the ‘70s the U.S. dollar
plummeted, and the company decided it needed a North
American manufacturing base. Stihl chose the Hampton
Roads area because of its deep-water port, the abundance
of skilled labor, and it was in a right-to-work state.
I should also add that the company received excellent
cooperation from the city of Virginia Beach through
all phases of the selection process.
Q: How was business in 2005?
A: Outstanding. 2005 was the largest and most successful
year we have on record. The U.S. set records for gross
sales, profitability and manufacturing output. For
2006 we are challenging our wholesalers to exceed 10
percent growth, a significant target.
Q: What will be
your biggest challenges in the coming year?
A: Environmental issues will continue to be a challenge.
Exhaust emissions and noise are priority issues for
outdoor power equipment manufacturers. We, as an industry,
have had to redesign our products to meet increasingly
stringent federal and California emission regulations,
similar to emissions regulations imposed on automobiles.
However, we have to be innovative in design and engineering,
because unlike a car, which supports all its weight
on its wheels, our products are handheld, so we can’t
add significant weight. We also have to comply with
sound regulations in many localities, which provide
another set of challenges. Breakthroughs in making
our equipment lighter, cleaner and quieter are essential,
and we are making them.
The other challenge is in finding and training a work force. But not just for
our manufacturing plant. There is a need for trained technicians to work at the
8,000 independent retail locations as well. We now have 12 pilot programs with
local schools around the country to encourage young people to pursue careers
in small engine repair. In the U.S., we tend to be focused on a college-bound
curriculum. The school system in Europe is set up differently. They utilize apprentice
programs that combine formal classroom settings with on-the-job training. Young
people grow up learning and respecting technical trade work as an honorable profession.
Our goal is to develop and support programs that train technicians and instill
that same message in our youth.
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