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Kohler Co.

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American manufacturing company in Wisconsin
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Kohler Co.
Company headquarters inKohler, Wisconsin
Company typePrivate
IndustryManufacturing,hospitality
FoundedDecember 6, 1873; 151 years ago (1873-12-06)[1]
FounderJohn Michael Kohler
Headquarters444 Highland Drive
Kohler, Wisconsin, U.S.
Area served
Worldwide
Key people
David Kohler
(President and CEO)
ProductsPlumbing fixtures, tile, furniture and cabinetry, engines, generators
OwnerKohler family
Number of employees
40,000[2] (2019)
Websitekohlercompany.com

Kohler Co., is an Americanmanufacturing company founded in 1873 by John Michael Kohler, based inKohler, Wisconsin.[3] Kohler is best known for itsplumbing products, but the company also manufacturesfurniture,cabinetry,tile,engines, andgenerators.Destination Kohler also owns varioushospitality establishments in the United States and Scotland. In February 2017, Kohler Co. acquired UK-basedClarke Energy from the management team andECI Partners,[4] a multinational specialist in the engineering, construction, installation, and maintenance of engine-based power plants and is an authorized distributor of GE's reciprocating engines in 19 countries worldwide.[5] In November 2023, it was announcing that Kohler is establishing the Energy group independently and would be bought in a complex partnership with private equity groupPlatinum Equity, the deal is slated to close in Q1 2024.[6]

History

[edit]

Kohler Co. was co-founded in 1873 by Austrian immigrantJohn Michael Kohler and Charles Silberzahn with the purchase of the Sheboygan Union Iron and Steel Foundry from Kohler's father-in-law,Jacob Vollrath, for $5000.[7] Early products includedcast iron andsteelfarm implements,castings for furniturefactories, and ornamental iron pieces includingcemeterycrosses and settees. A breakthrough came in 1883 when John Michael appliedenamel to a cast-iron horsetrough to create the company's firstbathtub. The company has been primarily in the plumbing business ever since and is known for itsplumbing fixtures andfaucets.

In the early 20th century, Kohler madedrinking fountains with a "bubbling valve", from which water shot vertically. Eventually, the entire fountain came to be known as a "bubbler" in the area in which Kohler products were sold.[8] The termbubbler is still used in a few areas of Wisconsin and some other areas of the United States.[9][10]

In 1934 and 1954,Kohler Strikes took place. A third strike took place in 1983 and lasted only a few weeks. On November 15, 2015, workers voted for the2015 Kohler Strike, making it the fourth strike in the company's history.

In 1984 Kohler acquiredSterling Faucet Company. The company was renamed as Sterling Plumbing Group Inc. The Sterling brand was integrated into the Kohler family of products. Kohler later expanded the offering of Sterling products adding to the faucet line, shower doors, sinks, toilets, and other bathroom accessories.[11]

In 2007, Kohler created a joint venture in China calledKohler-YinXiang Ltd., based inChongqing, China, to manufacture small gasoline engines, and intends to begin importing more of their engines, rather than building them in the US.[12][13] Kohler's UK subsidiary is theCheltenham-basedKohler Mira Ltd, best known for manufacturingMira Showers.

Corporate management history

[edit]

Former Wisconsin GovernorWalter J. Kohler Sr. was president of Kohler Co. and his son former Wisconsin GovernorWalter J. Kohler Jr. served for many years in senior management. The presidency of Kohler was passed down fromHerbert Kohler Jr. (born February 20, 1939, grandson of the founder), to his son,David Kohler, on June 1, 2015.

In 1998, Kohler made a plan to buy back any outstanding shares not owned by the family. All family members had to exchange their common shares for shares with limited rights that could not be sold. Since Kohler isnot a publicly traded company, the number of shares floating was minimal.[vague] Kohler offered $55,400 per share, but some shareholders challenged this valuation and sued. TheIRS also challenged this valuation by prosecuting the estate of Frederick Kohler, who had recently died holding 975 shares, but Kohler won the lawsuit.[14]

Hiring practices

[edit]

In 1999, a court case was brought by theUnited States Department of Labor alleging that Kohler Co.'s hiring practices were discriminatory to women.[15] The company had an informal height requirement of 5 ft 4 in (1.63 m) for women, which is the average adult female height in the United States.[16] Because of its contracts with the federal government, the company was prohibited from enforcing this requirement[17] and as part of a settlement agreed to hire 111 of the 2,000 women who had applied to work at Kohler from 1994 to 1995 and to undertake a study "to eliminate unnecessary barriers to women".[This quote needs a citation]

Working conditions

[edit]

In 2005,China Labor Watch accused Kohler China (Investment) Co., Ltd. of major worker rights violations at itsFoshan factory. These included: excessive work hours, lack of overtime pay, low wage payment, unsafe working conditions, uncompensated work injuries, and denying workers the ability to form their own union.[18]

Controversy

[edit]

In January 2020, Kohler paid $20 million in a settlement with theUnited States Department of Justice, theEnvironmental Protection Agency, and the state of California over its small engines' violations of theClean Air Act andCalifornia law.[19]

Products

[edit]
Kohler "Dexter" urinals
Kohler "Bardon" urinals
Power generatorGS 400 produced by SDMO Industries
Kohler Design Center

Kohler's bath and kitchen fixtures are available in Americanhardware and home improvement stores and fromKohler Kitchen and Bath distributors. Kohler still makes traditional cast iron bathtubs, one of the few United States manufacturers to do so. Besides residential products, Kohler manufactures a commercial line of bathroom fixtures. The company also does artistic custom work, such as hand-painted sinks and toilets. In 2015 Kohler was named byBuilder magazine as the "most used" and "best quality" in the "Bath Accessories" category as well as the top spot for "brand familiarity", "most used" and "quality rating" in the "Bath Fixtures" and "Whirlpool Baths" categories.[20]

The Kohler Walk-In Bath Division designs, engineers, and buildsaccessible bathtubs that are easier to enter than traditional bathtub models. The division specializes in bathing products for people with limited mobility or who are disabled. Founded in 2015, this specialty division sells its bathtubs through independent dealers across the United States.

Kohler also makes a wide range of small industrial engines. Traditionally, the company manufactured gasoline engines; however, after purchasing the Italian companyLombardini, it extended its range and now offersdiesel engines up to 134HP.[21] Kohler engines power a range of devices from water pumps to off-road vehicles. TheGlobal Power group manufactures generators of varying sizes. Kohler was the first company to offer residential backup generators, starting in 1920.[22]

Since 2007, the company has been expanding in the areas of furniture, cabinetry, and tile in the consumer market, and engines and generators for industry. TheKohler Interiors division of the company comprises Robern, Sprig, Kallista, Ann Sacks Tile and Kast.[23]

Kohler displays many of its products at theKohler Design Center in the village of Kohler.

At CES 2018 Kohler unveiled a new product line called Kohler Konnect, consisting of smart connected plumbing fixtures including bathtubs, mirrors, shower heads, toilets, and shower valves. These new digital fixtures have WiFi capabilities, enabling voice assistant control throughGoogle Assistant,Amazon Alexa orApple HomeKit, and app control support via the Kohler Konnect app.[24] The Kohler Konnect services are powered by theMicrosoft Azure Cloud platform.[25] Competitors include the U byMoen shower controller and kitchen faucet, and theDelta VoiceIQ kitchen faucet.

Sponsorships

[edit]

In 2018, Kohler became a sponsor of English football giantManchester United. As the club’s first sleeve sponsor from 2018–22, Kohler had its logo prominently displayed on all United jerseys. While the company was replaced by fellow American companyDXC Technology as sleeve sponsor in 2022, it remains an official United partner.[26]

In early 2021, Kohler announced they would be sponsoringRoush Fenway Racing driverRyan Newman for a selected number of races in 2021, debuting in the2021 Daytona 500, while using Kohler Generators as their sponsor. They continued their sponsorship in 2022 with driverBrad Keselowski, who leftTeam Penske at the end of 2021 to join Roush as a driver/minority co-owner under the team rebrandedRoush Fenway Keselowski Racing, orRFK Racing in 2022.

Destination Kohler

[edit]
Main article:Destination Kohler

Kohler Co.'s hospitality and real estate group, Destination Kohler, oversees the management, marketing and tourism promotion for its golf courses, hotels, private clubs, shops, restaurants, company-sponsored and village events.The American Club is a highly rated resort hotel in the Midwest.[27]

John Michael Kohler Arts Center

[edit]
Main article:John Michael Kohler Arts Center

Kohler Co. is affiliated with the non-profitJohn Michael Kohler Arts Center inSheboygan, Wisconsin, which occupies a square block of downtown Sheboygan that contains Kohler's restored formermansion, several newer buildings, and the exterior structure of the formerCarnegie-era Mead Public Library building as a modern "ruin". The John Michael Kohler Arts Center operates an Arts/Industry program, the primary component of which is a residency program at Kohler. Artists have the opportunity to spend two to six months creating works of art using the industrial materials and equipment.

Residential review committee

[edit]

The company continues to maintain a residential review committee (similar to ahomeowner association) which ensures the compliance of the originalKohler Village plans and architectural designs from the defunct Kohler Improvement Company. Residents who want to add onto their home, build new outbuildings or fences must receive Kohler Company RRC approval before taking their plans to the planning commission, and comply with the design and aesthetic standards of the Kohler Company RRC.[28][29]

Primary competitors

[edit]

Images

[edit]
  • Kohler Company Foundry as seen from the east
    Kohler Company Foundry as seen from the east
  • Kohler Company Main Office in April 2008
    Kohler Company Main Office in April 2008
  • The American Club
  • Entrance to The American Club
    Entrance to The American Club

References

[edit]
  1. ^Dippel, Beth (December 29, 2021)."History Uncovered: Location, location, location – Kohler and Vollrath companies' first homes".Sheboygan Sun. RetrievedSeptember 7, 2022.
  2. ^"Kohler: Company Profile".Forbes.
  3. ^Jeff Engel (October 29, 2012),"Hurricane Sandy puts Wisconsin generator makers into overdrive",Milwaukee Business Journal, bizjournals.com, retrievedOctober 30, 2012
  4. ^White, Lucy (February 2, 2017)."ECI more than doubles money on exit of Clarke Energy to Kohler – Real Deals".Real Deals. RetrievedAugust 30, 2017.
  5. ^"Kohler Co. Acquires UK-based Clarke Energy".PR Newswire (Press release). RetrievedFebruary 2, 2017.
  6. ^"Platinum Equity Agrees to Buy Kohler's Generators Division". Bloomberg. November 6, 2023. RetrievedFebruary 10, 2024.
  7. ^Derdak (2000).International Directory of Company Histories, Vol 32. St. James Press.
  8. ^Tom Tolan (November 2, 2007)."More Milwaukee-ese: The bubbler".Milwaukee Journal-Sentinel. RetrievedJuly 3, 2016.
  9. ^Beth Dippel. "Debunking the the bubbler myth".Sheboygan Press, October 31, 2014. Accessed July 3, 2016.
  10. ^Center for the Study of Upper Midwestern Cultures. "Wisconsin Englishes: Words"Archived June 3, 2009, at theWayback Machine.
  11. ^"About Sterling Plumbing".Sterling Plumbing. Kohler Co. RetrievedMay 2, 2018.
  12. ^"About Kohler Engines". Kohler Company. RetrievedNovember 18, 2015.
  13. ^"Kohler Creates Joint Venture With Chinese Engine Maker".RERMAG. RetrievedNovember 18, 2015.
  14. ^"IRS Over-Values Interest in Kohler Company by $100 Million Dollars".The Judicial View. Archived fromthe original on March 13, 2016. RetrievedAugust 27, 2022.... a small number of shares held by individuals outside the Kohler family ... Some of the non-family exercised dissenter's rights ... for differing amounts up to $135,000 per share ... The Tax Court adopted the WMA fair market value of $47,010,000, rejecting the entire tax deficiency assessed by the IRS
  15. ^"Kohler Will Pay Nearly $900,000 in Back Pay to Resolve Discriminatory Hiring Practices".U.S. Labor Department. September 23, 1999. Archived fromthe original on August 29, 2017. RetrievedNovember 18, 2015.
  16. ^"Anthropometric Reference Data for Children and Adults 2003–2006"(PDF).
  17. ^"Federal Laws Prohibiting Job Discrimination: Questions And Answers".EEOC.gov. U.S. Equal Employment Opportunity Commission. November 21, 2009. RetrievedDecember 10, 2016.
  18. ^China Labor Watch (June 1, 2005)."The Kohler Company's Factory in Foshan, China: Dangerous Working Conditions, Long Hours and Little Pay".Cornell Digital Commons. RetrievedJanuary 17, 2018.
  19. ^"Kohler to pay $20M penalty for California engine emissions".Star Tribune. RetrievedMarch 5, 2020.
  20. ^"2015 BUILDER BRAND USE STUDY RESULTS".Builder. RetrievedJune 19, 2015.
  21. ^"KDI Diesel – Kohler Engines". kohlerengines.com. RetrievedDecember 10, 2016.
  22. ^Blodgett, Richard (2003).A Sense of Higher Design-The Kohlers of Kohler.
  23. ^"Kohler Broadens High-end Bathroom Portfolio and Strengthens Bold Color Leadership with Addition of Kast Concrete Basins".prnewswire.com. May 3, 2023. RetrievedFebruary 12, 2024.
  24. ^"Kohler Introduces Voice-Command Technology Into The Bathroom, Announces New Smart Home Products With 'KOHLER Konnect'".us.kohler.com. Archived fromthe original on March 3, 2018.
  25. ^"Kohler brings the IoT revolution to your bath".Microsoft. February 15, 2018. Archived fromthe original on April 8, 2018.
  26. ^"Kohler Co. Unveiled as Principal Partner of Manchester United".kohler.com.sg.
  27. ^"The American Club - Kohler Hotels - Kohler, United States".Forbes Travel Guide. RetrievedMay 24, 2021.
  28. ^"Kohler Co. Residential Review Committee Submission"(PDF).Kohler Company. RetrievedNovember 24, 2015.
  29. ^"Building Permits".Village of Kohler. RetrievedNovember 24, 2015.

External links

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