When Frederick Anderson was 18 years old, he knew he wanted to go to college, but his father’s advice was that he could go to any college he could afford, prompting him to get a job at Wenthe-Davidson Engineering Co. He started his career grinding motor housings for $4.15 an hour and for the next seven years performed every manufacturing process in the plant from welding to coil processing then shipping and receiving, all while attending college.
Anderson worked virtually every position in the company, becoming Wenthe’s third president in 1999 and its president and chief executive officer in 2005. Wenthe-Davidson Engineering Co. is a custom metal fabricator, specializing in the manufacture of electric motor and generator housings, tubular metal products and emission system components for the diesel market.
During his tenure as president, the company increased sales by 371% by developing new markets and stabilizing existing ones, tripled the manufacturing footprint by over 300% through three building expansions and expanded employment by 280%.
Under Anderson’s leadership, the company became 100% ESOP in 2017. “Employee owners are the first consideration when decisions are made,” said Anderson. “Our growth in the last several years has been largely fueled by doing much more value-added services for our customers.”
Even in slower markets the firm was able to increase its sales and margins by fabricating parts that its customer base was doing themselves, ultimately increasing sales by 12% after COVID-19 without adding a customer and 23% with added customers.
“The key to my success was recognizing that any customer will not stay a customer if they perceive they can do better elsewhere,” said Anderson. “I was able to instill a culture at Wenthe-Davidson where we made ourselves so stuck to our customers that it would be painful for them to leave, and some of our customers have been with us for over fifty years.”
Fostering a collaborative culture has also been key to the company’s success, said Anderson. “To me, it’s all about watching others grow and succeed, and I get really motivated when I see people in our company achieve,” he said. “What makes a fun place to work is the camaraderie of working on a team that cares and lifts each other up. It truly is about the journey, not the destination.”
His focus on empowering employees has not gone unnoticed. “As a leader who serves others, he recognizes and appreciates Wenthe employees as individuals and seeks to provide each with stable employment, a living wage and a comfortable work environment,” said his staff. “He regularly engages with employees, greeting each person by name, answering questions candidly and helping resolve concerns.”