Volume 2 • 2014 The Voice of STIHL

Page 8: STIHL Inc. 40 th Oktoberfest Celebration

Fred Whyte, Hans Peter Stihl, Dr. Nikolas Stihl

INTRO

Table of Contents

2

3 Award-Winning Manufacturing 2014 Assembly Plant of the Year

4 Cantelmi’s Hardware Family owned business

6 NEW Product Spotlight The latest and greatest in STIHL

innovation

8 Celebrating 40 Years Highlights from STIHL 40th Oktoberfest

11 NEW STIHL iCademy® Showdown Show off your sales skills and win

12 Real STIHL Share your story

Dear Servicing Dealers,

This year’s ongoing celebration of STIHL Inc.’s 40th anniversary of building in America* culminated in an Oktoberfest celebration with representation from the Stihl family. In his remarks to the assembled group, Dr. Nikolas Stihl said, “What makes me particularly proud about these 40 years is not just that we have succeeded but that we have done so by remaining true to our values.” Dr. Stihl, who worked at STIHL Inc. in Virginia Beach as a product manager in the 1990s, is the grandson of our founder and now chairman of the advisory board of STIHL Holding AG & Co.

Quality is an overriding value that we adhere to…quality in our products, processes and people. In fact, ASSEMBLY magazine recently recognized STIHL Inc. as 2014 Assembly Plant of the Year “because of the way that it ensures on-time delivery of high-quality products through innovative use of automation, people and flexible production processes.”

We believe that we are also represented by some of the best quality servicing retailers in the industry, and any celebration of STIHL success is a celebration of the servicing dealer. We are proud of the milestones achieved through the years by adhering to our servicing-retailers only policy: we have watched dealer market share grow and the number of STIHL retailers in our network steadily increase, exceeding 8,500 today. In 2009, we achieved the status of number one selling brand of gasoline-powered handheld outdoor power equipment in America,* a position we continue to hold today. For 2014, we are on track for record sales and record market share.

On behalf of all STIHL employees around the world, we want to thank you, our STIHL servicing dealers, for your continued support of STIHL products and programs and for helping us achieve the success we enjoy today. We look forward to pursuing our shared future success.

Sincerely,

Fred J. Whyte President, STIHL Inc.

From the President

*A majority of STIHL powerheads are built in the United States from domestic and foreign parts and components. “Number one selling brand” is based on syndicated Irwin Broh Research as well as independent consumer research of 2009-2013 U.S. sales and market share data for the gasoline-powered handheld outdoor power equipment category combined sales to consumers and commercial landscapers. © 2014 STIHL

Reminder: STIHL Chainletter Now Interactive! The new digital edition is live NOW. Visit STIHLUSA.com/DigitalChainletter from your desktop or tablet to view this issue.

3STIHL Chainletter Volume 2 2014 ANNOUNCEMENTS

ASSEMBLY Recognizes STIHL Inc. as World-Class Production Facility

STIHL Inc. Wins 2014 Assembly Plant of the Year Award

Officially Licensed Merchandise

Boost STIHL OUTFITTERS™ Sales Through Your PowerChord Website

STIHL Inc. has a new category in which it is ranked number one* in the nation. This latest accolade comes from ASSEMBLY magazine, which named STIHL Inc. the 2014 Assembly Plant of the Year. The award showcases STIHL Inc. as a world-class production facility and recognizes the exceptional people, products, and processes that make the brand successful.

The state-of-the-art processes employed by the STIHL Inc. facility reduce production cost, increase productivity and improve product quality. Another contributing factor to the win was the use of vertically integrated manufacturing which ensures that parts assembled internally are excellent quality and helps guarantee on-time delivery of superior products.

“At STIHL Incorporated, we always seek out new strategies and technologies to reduce production cost and time, better our products for our loyal customers, and enhance the work environment for our employees,” said Christian Koestler, vice president of operations for STIHL Inc., “Being honored as the 2014 Assembly Plant of the Year is a testament to the success of the STIHL way.”

For more on this esteemed award, visit AssemblyMag.com.

To meet the increasing customer demand for STIHL branded clothing, gifts and more, you can now offer the coveted line of STIHL OUTFITTERS™ officially licensed merchandise to your customers online through your STIHL PowerChord website – simply activate your PowerChord site to participate.

STIHL OUTFITTERS™ provides an excellent way to promote the STIHL brand through our fan base, as they wear the apparel and use other merchandise, in essence providing free advertising and publicly displaying their affinity for the STIHL brand.

You can still offer your customers the items you choose to stock in store, while directing them to your STIHL PowerChord website for access to more than 200 items in the full merchandise catalog, ranging from hats and shirts to golf bags and mud guards. Additional items are available through monthly specials and holiday offerings.

Have questions? Check with your territory manager for specific details.

L to R: Christian Koestler, vice president of operations, STIHL Inc.; Lorraine Wagner, director of manufacturing, STIHL Inc.; Austin Weber, senior editor, ASSEMBLY magazine.

PROFILE4

Customers Come FirstIn the era of mass merchants, he credits his family’s legacy of

quality customer service for keeping both stores in business and thriving.

“Customer service, that’s what keeps people coming back to us instead of going to The Home Depot or Lowe’s,” said Cantelmi. “It costs nothing to be nice.” That’s something his grandfather used to say and it continues to be the philosophy for both stores.

Cantelmi encourages all of his employees to make the customer their first priority. “If you have a question about a product or

Dealer Spotlight

Generations of Service and Embracing Change at Cantelmi’s HardwareWorking in his family’s business is the only job Rick Cantelmi has ever known. He started working for his grandfather when he was just eight years old. Placido Cantelmi opened Cantelmi’s Hardware in Bethlehem, Pa. in 1922. He eventually handed the business down to his son, Louis, who started working in the store in 1937. Now, Louis’ son Rick is celebrating 41 years in the business and runs two stores in the area covering 30,000 square feet.

project, we can help; and you won’t have to wait in line here.” If that means he has to get behind the register to open another line or on the sales floor, he’s happy to do it.

Many of his customers have been shopping at his Bethlehem store for several decades. Cantelmi said in the early days, people would have a problem, like a broken window, and his grandfather would repair it on credit. “To this day, people still come to my store and say they remember my grandfather. They don’t forget things like that.”

Dealer/Owner: Rick Cantelmi

Location(s): Bethlehem and Forks Township, Pa.

Employees: 32

“We’ve been selling STIHL since 1977, and the dependability of their products is legendary.”

STIHL Chainletter Volume 2 2014 5

Embracing ChangeAlong with customer service, Cantelmi

believes being able to adapt to new demands has helped the business stay afloat during tough economic times, including the Great Depression. “My grandfather started this business as a glass repair shop; we later added hardware and outdoor power equipment.”

Cantelmi also believes knowing your customer base is key. “You have to look at what the area needs and meet that demand. At our Bethlehem store, we have a much higher percentage of commercial customers, so we cater to them.”

It’s a much different story for Cantelmi’s second store in Forks Township, Pa., where the focus is more consumer-based. He decided to open the Forks location in 2006 because of suburban growth in the area. “Our clientele in Forks is 80 percent consumer and 20 percent commercial. Because of that, we decided to sell more lawn and garden products, as well as propane and grilling equipment.”

Finding the Right Products“My customers expect me to carry the

best products,” said Cantelmi. As they have expanded both stores over the years, he has tried to find quality products that attract new customers and keep customers coming back. “We’ve been selling STIHL since 1977, and the dependability of their products is legendary. As a STIHL dealer, it is easy for us to stand behind that equipment.”

Cantelmi was excited about working with STIHL because their products aren’t sold by mass merchants. “Customers have to come to Cantelmi’s Hardware or other independent dealers to buy STIHL products. That gives us a definite advantage over big box stores.” Cantelmi says many customers come to him the first time to buy STIHL products, then keeping coming back to buy other items.

Service is KeyA key part of the Cantelmi business

model is that they service what they sell. They are a certified STIHL MasterWrench Service® dealership with two gold level

his distributor, Northeast STIHL, gives him the edge he needs. “They play a big part in helping me service my customers efficiently. I can put in an order and get it the very next day.” Cantelmi said this helps him reduce his on hand inventory. “I don’t get this kind of prompt service from many manufacturers.”

Future Generations of Service

Cantelmi believes his family’s ability to honor their traditions while adapting to the changing business environment will keep the business going strong in the future. And, while he doesn’t plan to retire anytime soon, he hopes to pass his stores on to his son, Patrick, 22, who just graduated from Temple University with a degree in Information Science and Technology as well as Business.

Cantelmi believes that communication technology will play a big role in the future of his business and that his son will be ready to lead the charge, “This is a family business, and I hope it will stay that way for many generations to come.”

Learn more about Rick Cantelmi and Cantelmi’s Hardware at Cantelmihardware.com.

technicians on staff. “Our team is able to handle almost any after-sale customer need, and our clients are happy they can get everything done in one place.”

Keeping costs down to remain competitive is key, and Cantelmi says

Cantelmi says many customers come to him the first time to buy STIHL products, then keeping coming back to buy other items.

Cantelmi is one of two certified STIHL Master Wrench Service® technicians.

“We’ve been selling STIHL since 1977, and the dependability of their products is legendary.”

PRODUCTS 6

Technology. Power. Performance.

NEW Product SpotlightFrom yet another “industry-first,” to continued expansion of groundbreaking platform technology, the latest STIHL products are grounded in quality engineering and designed to perform.

NEW! TSA 230 STIHL Cutquik®

STIHL introduces another world’s first – a cut-off machine powered by 36-volt lithium-ion battery technology.

•Changesthegameforthejobsite,deliveringmaneuverabilityandsolid cutting performance in a lightweight (8.6 lbs*), compact package that can be used indoors.

•Onboardwatercontrolshelpsuppressdustwhileatoolless wheel lock prevents blade rotation when removing the wheel attachment bolt.

• Providesgreatvalue–pricedbelowitsgasoline-poweredcounterpart.

*without battery and wheel

NEW! STIHL HTA 85 Pole PrunerHomeowners and tree care professionals now have a quiet, zero-exhaust emission option for trimming overhead branches.

• Lightweight(10.8lbs)12’telescopicpolepruneroffersbalancedcuttingfortalltree-trimmingtasks.

•Offerslongruntimesonasinglecharge–uptothreehoursdependingonbatteryandusage– with no gradual drop in performance.

• Brushless,commercial-grade,high-torqueelectricmotorrequiresminimalmaintenancesinceithas no engine or filter.

• Bestofall,there’snogasolinecostandnorestrictivepowercords.

STIHL Battery KombiSystemThe STIHL TSA 230, HTA 85 and HLA 85 are just two of the latest products in the ever-expanding family of 36-volt STIHL Lithium-Ion Battery KombiSystem cordless battery-powered products. Learn more about the benefits of this innovative interchangeable battery system: STIHLUSA.com/battery.

Shown with optional stand.

7STIHL Chainletter Volume 2 2014 PRODUCTS

STIHL M-TRONIC™ Chain SawsSmart technology meets big power: This innovative microprocessor-controlled M-TRONIC™ system optimizes engine performance and compensates for changes in operating conditions. This uniquely STIHL system allows for changes in elevation, air temperature and more.

Shown with new graphics for lightweight guide bars.

•NEW! SG 51 – All the same features of the SG 71 with a lesser-volume capacity providing low-weight, comfortable operation for smaller-scale applications.

•NEW! SG 31 – New mid-range handheld sprayer features a 1.32-gallon capacity for your customers’ home, garden or farm spraying needs.

•NEW! SG 11 – A lightweight (1 lb.) yet tough multi-purpose handheld sprayer for quick tasks around the home.

NEW! STIHL SG 71 Manual Backpack SprayerThis backpack sprayer features a robust design, large-volume capacity, ergonomic shut-off valve and an adjustable brass nozzle – all equipped to stand up to professional spray jobs.

• Large-capacity,4.75gallon,tankreducesrefilldowntimeforextendedsprayingtasks.

• Pressurizedfluidreservoirhelpsensureconstantworkingpressureat40psiforconsistentspraying coverage.

•Anadjustablebrassnozzlecomesstandardforprecise,controlledsprayingforinsecticide,pesticide and herbicide applications.

Expanded Sprayer Models – Available 1st Quarter 2015STIHL is expanding offerings to provide a full variety of options for occasional, mid-range and heavy-duty professional spraying tasks.

NEW! STIHL MS 661 C-M and MS 661 R C-M Chain SawsDesigned with the STIHL M-TRONIC™ technology, these new saws are rugged, dependable and boast more than 7.0 bhp (91 cc) in professional power.

•Innovativemicroprocessor-controlledSTIHLM-TRONIC™systemoptimizesengineperformanceandcompensatesfor variances in temperature, elevation, fuel quality, and even dirty air filters.

•Well-suitedforforestrypersonnel,farmers, landscapers, municipalities and tree service crews tasked with felling large diameter trees.

40 YEARS8

From Modest Beginnings to a Manufacturing Powerhouse

What began with fewer than 50 employees assembling one model of chain saw in a rented warehouse in 1974 has grown into a state-of-the-art manufacturing facility. Today, STIHL Inc. manufactures more than 275 model variations, exports to more than 90 countries, and employs more than 2,100 nationwide.

“Our initial operation was modest, but through the leadership of the Stihl family, exceptional German engineering, and superior American manufacturing, we have grown into the number one selling brand of gasoline-powered handheld outdoor power equipment in America,*” said Fred Whyte, president of STIHL Inc.

Since 1974, STIHL has steadily increased its investment in its U.S. facilities, introducing new product lines and increasing vertical integration. Along the way, STIHL Inc. has been recognized with multiple accolades for manufacturing excellence, including most recently, the 2014 Assembly Plant of the Year and

STIHL Inc. 40th Anniversary Celebration

German Engineering Meets American Ingenuity on the Path to Number One*

STIHL Inc. recently celebrated its 40th anniversary of manufacturing in the U.S. in a big way. The Oktoberfest-themed event brought together two generations of the Stihl family and approximately 2,200 employees, branch/distributor representatives and other guests from around the world.

Association for Manufacturing Excellence (AME) Manufacturing Excellence Awards.

The Stihl Family: Reflections on the Past 40 Years

Two generations of the Stihl family addressed the crowds and reflected on the past 40 years.

“What makes me particularly proud about these 40 years is not just that we have succeeded but that we have done so by remaining true to our values,” said Dr. Nikolas Stihl, who worked at STIHL Inc. as a product manager in the 1990s and now as chairman of the STIHL advisory board of STIHL Holding AG & Co.

Hans Peter Stihl, general partner and son of the company

(L to R) Dr. Bertram Kandziora, chairman of the executive board, STIHL Holding AG & Co.; Fred Whyte,

president, STIHL Inc.; Hans Peter Stihl, general partner, STIHL Holding AG & Co.; Dr. Nikolas Stihl,

chairman of the advisory board, STIHL Holding AG & Co.; Dr. Rüdiger Stihl, member of the advisory

board, STIHL Holding AG & Co.

9STIHL Chainletter Volume 2 2014

founder Andreas Stihl, expanded upon these values, acknowledging the independent servicing dealer’s impact on the STIHL success story.

“Our unique distribution strategy may seem curious to consumers used to the mass merchants, and many of our competitors have chosen a path to quick profits, which can often be at the expense of quality. This is not the STIHL way.”

Looking ForwardWhyte, closed out the festivities with a

look toward the future. “I’d like to express appreciation to the entire STIHL team who has made our 40-year success story possible. We should all look forward to what the next 40 years will bring for STIHL Incorporated.”

*A majority of STIHL powerheads are built in the United States from domestic and foreign parts and components. “Number one selling brand” is based on syndicated Irwin Broh Research as well as independent consumer research of 2009-2013 U.S. sales and market share data for the gasoline-powered handheld outdoor power equipment category combined sales to consumers and commercial landscapers. © 2014 STIHL Inc.

(L to R) Selina Stihl; Hans Peter Stihl, general partner, STIHL Holding Ag & Co.; Andy Garstenauer, director of engineering, STIHL Inc.; John Wicker, piston lead, STIHL Inc.; Dr. Nikolas Stihl, chairman of the advisory board, STIHL Holding AG & Co.

Q: I have a Gold-certified technician on staff, what is the difference between the Gold and Platinum certification and what advantages are there to at-taining this new level of certification?

A: STIHL MasterWrench Service® Platinum level certification recognizes technicians and dealers having high levels of service competence above and beyond that of other STIHL MasterWrench Service® dealers.

Platinum-certified technicians must complete the three prior stages of training; Bronze, Silver and Gold, before applying for this new level of STIHL MasterWrench Service® certification. Visit STIHLiCademy.com or contact your distributor for additional program qualification requirements.

STIHL dealers who have at least one certified Platinum level STIHL MasterWrench Service® technician employed in their service department will receive the following program benefits:

• Yourdealership’snormalretaillaborrate reimbursement for all STIHL warranty repairs based on the repair times listed in the STIHL Repair Timetables in effect at the time.

• Anysparepartsusedinperformingwarranty repairs will be reimbursed at a higher rate than Gold certification.

• FreeannualsubscriptiontoSTIHLonline electronic service support.

• Additionalbenefitsmayalsobeofferedby your STIHL distributor.

Q: What is involved with the training program and how does my dealer-ship apply to participate?

A: Submit a completed STIHL MasterWrench Service® Platinum training application to your STIHL distribution center. Requirements and applications are available for download at STIHLiCademy.com in the Service Support menu.

TECH TIPS10

By Randy Scully, national service manager for STIHL Inc.

Your Questions Answered: STIHL MasterWrench Service® Platinum Certification

Extend Your Customer’s Piece of Mind with the STIHL Extended Warranty PlanYour customers depend on STIHL equipment to deliver performance and dependability. Now, they can gain even more peace of mind with our hassle-free extended warranty program.

Up to Five Years CoverageCustomers can purchase a STIHL Extended Warranty Plan for one additional

year with power tools; up to three additional years for chain saws and electric products (up to five years of total warranty coverage). This flexible, transferable coverage available for personal non-income producing family or household purposes. Full plan details available at STIHLiCademy.com.

•RepairsarehandledjustlikeanyotherSTIHLwarrantyrepair–you’llworkdirectly with your STIHL distributor for reimbursement of qualifying repairs.

•Unlike some other extendedwarranty plans,the customer does not need repair approval from a third-party administrator.

• You will receive a commission for eachExtended Warranty Plan you sell.

Price and coverage period varies by product.

About the ChallengeThe STIHL iCademy® Selling Skills Showdown is open

to all STIHL dealer employees registered with the STIHL iCademy® dealer training website. Employees are encouraged to demonstrate their abilities to sell a STIHL blower, trimmer, or chain saw, with the hopes of being selected as one of the top 12 – one per branch and distributor territory – who will each be awarded a Polaris 2015 Sportsman® ETX ATV.

“The Selling Skills Showdown provides a fun, interactive way for dealer employees to engage with STIHL iCademy®,” said Jennifer Harr, national training coordinator for STIHL Inc. “STIHL dealer employees will benefit from watching their peers’ sales techniques, and the winner earns bragging rights for being in the top 12.”

11STIHL Chainletter Volume 2 2014 INFO

STIHL iCademy®: Selling Skills Showdown

Showcase Your Dealership Sales Techniques and Win!STIHL is challenging your sales staff to capture their best sales techniques in a five-minute video for a chance to win big!

How to Enter:1. Watch three videos

on STIHL iCademy®:

• HowtoChoose a Blower

• HowtoChoose a Trimmer

• HowtoChoose a Chain Saw

2. Create your own quick video “role playing” selling a STIHL blower, trimmer or chain saw using the tips that you learned in the videos.

3. Upload your video onto iCademy® or mail to STIHL Inc.

Dealers Beware

Product PiracyThey say that imitation is the most sincere form of flattery, but when it comes to counterfeit or imitation STIHL products and

parts, dealers should steer clear.

In addition to the potential patent, trademark and/or copyright issues, STIHL dealers need to consider the financial and legal ramifications associated with selling knock-off STIHL products.

•Willthat“offbrand”manufacturerassumeyourdefenseinaproductliabilitylawsuit?

•Doyouknowifanoff-shore,knock-offproducthasbeencertifiedtobeemissionscompliant?

• Areyouconfidentintheproductquality?

•Haveyouconsideredtheimpactonyourbusiness’reputationifcustomersmustreturnwithfailedunits?

“Every counterfeit chain saw sold is not only a potential danger in the hands of the user, but is also one less authentic saw being manufactured in our Virginia Beach plant – thus impacting American jobs.” – Scott Tilley, general counsel, STIHL Inc.

Be safe – for your client’s sake and your business. Stick with genuine STIHL equipment and STIHL parts. When in doubt, please contact your STIHL territory manager.

The STIHL iCademy®: Selling Skills Showdown runs NOW through March 31, 2015. For complete rules and regulations, visit STIHLiCademy.com.

536 Viking DriveVirginia Beach, VA 23452

NEWS12

STIHL Cut-Off Machine and Chain Saw Safety, Maintenance and Operation Videos

Training and understanding of proper safety procedures helps reduce the risk of on-the-job injuries. Operators of STIHL Cutquik® cut-off machines and STIHL chain saws can now benefit from supplementary, professional training from the convenience of their home or office on DVD or online at www.stihlusa.com.

“These instructional videos are a complement to the product instruction manuals and are not only for the new user, but also developed with the seasoned veteran in mind,” said John Keeler, national training manager, STIHL Inc.

To order DVDs, contact Red Letter Communications: (800) 732-0054. Cost: $4.99 plus shipping and handling.

We Want to Hear Your StoryReal People. STIHL People.

This year, STIHL launched “Real People.

STIHL People,” the most comprehensive

program in our history to find, collect

and share stories from those who build,

sell and use STIHL products – and to

demonstrate how these tools make a

meaningful impact on their lives. These

aren’t actors, or scripted stories. These

are real people sharing their true STIHL

experience. Their stories have helped

build the STIHL story.

Your story is part of the STIHL story, and we want to know your story. Visit RealSTIHL.com to share your story, and you could be featured in the Real STIHL national ad campaign.