Founded in Wisconsin: Eau Claire's National Presto

greenwoodphilip
4 days ago
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Eye-level view of the historic building that once housed National Presto Industries in Eau Claire, Wisconsin — The historic site of National Presto Industries, a landmark in Eau Claire's industrial history

The story of industrial growth in the United States is often filled with tales of creativity, entrepreneurship, and the communities that support them. An example is National Presto Industries, a brand known for its high-quality kitchen appliances. Founded in Eau Claire, Wisconsin, National Presto's journey represents both economic shifts and the essence of American innovation.

Leadership - A Multi-Generation Story at National Presto

Everett R. Hamilton established National Presto Industries in 1905 in Eau Claire, Wisconsin, initially under the name Northwestern Steel and Iron Works. As President and majority owner, Hamilton steered the company towards specializing in industrial equipment, such as cement mixers and steam pressure canners. By 1908, the company was manufacturing 50-gallon retorts for commercial food processing and, in 1915, introduced a small aluminum foundry to produce 10-gallon household pressure canners. The USDA's endorsement of pressure canning in 1917 significantly boosted demand, prompting the company to rebrand as National Pressure Cooker Company in 1929. In 1939, Hamilton unveiled the Presto saucepan-style pressure cooker at the New York World's Fair, revolutionizing consumer cooking practices. As World War II approached, he secured a $3 million contract to produce artillery fuzes, demonstrating adaptability to wartime conditions despite aluminum shortages. Hamilton passed away in February 1942, leaving the company on the brink of bankruptcy.

Lewis E. Phillips, born in 1899 in Minsk and raised in Manitowoc, Wisconsin, significantly transformed National Presto. In 1942, alongside his brother Jay, he acquired the nearly bankrupt company and assumed the role of President, later becoming Chairperson. During World War II, he skillfully redirected production to focus on military components, employing women and stabilizing the business. Following the war, he shifted the focus back to consumer goods, introducing electric appliances and expanding manufacturing capabilities. A committed philanthropist, he founded the Presto Foundation and L.E. Phillips Charities, which support local communities. Lewis led National Presto until 1966 and passed away in 1978, leaving behind a legacy of innovation and community impact.

Melvin S. Cohen, Lewis Phillips' son-in-law assumed leadership of National Presto Industries in 1960, initially serving as President and later as Chairman. His conservative yet stable management style facilitated the company's listing on the NYSE in 1969, while maintaining robust reserves and dividends. Born in 1918 in Minnesota, Cohen earned a law degree during WWII before joining Presto in 1944. By 1954, he had become President, steering the company through decades of profitability with minimal debt and substantial dividends. Cohen was a proponent of product innovation, successfully introducing products such as the FryBaby and SaladShooter, while ensuring the company remained under family control. He held the position of Chairman until 2002 and continued to serve on the board until his passing in 2008. His philanthropic contributions included the Presto Foundation Scholarship Program and the Melvin S. Cohen Foundation, which supported community and educational initiatives.

Maryjo Cohen has been instrumental at National Presto Industries since 1976, progressing from legal and financial positions to President in 1989, CEO in 1994, and Chairman in 2002. Her leadership has facilitated the company’s expansion into the defense and safety industries through strategic acquisitions, including Amtec, Spectra Technologies, Amron LLC, and Rusoh. Cohen holds a substantial equity stake, ensuring the continuity of family ownership. Under her direction, the company has maintained its independence during industry consolidations, consistently innovating and providing shareholder dividends. Born in Eau Claire, Wisconsin, Cohen holds a B.B.A. and J.D. from the University of Michigan. She exemplifies strategic leadership while co-managing the L.E. Phillips Family Foundation, upholding her grandfather’s philanthropic legacy.

National Presto - 1905 and to the Present

The Company, originally established as Northwestern Steel and Iron Works in 1905, transitioned from producing industrial equipment to becoming a leader in home food preservation. By 1915, the company identified the household need for food preservation and began manufacturing pressure canners for home use. A significant advancement occurred in 1917 when the U.S. Department of Agriculture endorsed pressure canning, boosting demand for their products. During the Great Depression, the company, then known as the National Pressure Cooker Company, strategically shifted its focus to home-use pressure cookers, which became essential for families. Despite initial costs, these products offered long-term savings, attracting budget-conscious consumers. Innovations such as E.H. Wittenberg's rubber gasket seal enhanced safety, while New Deal programs promoting home canning increased their popularity. The 1939 introduction of the saucepan-style Presto® pressure cooker at the New York World’s Fair solidified their market presence. By then, National Presto Industries had established itself as a leader in kitchen appliances, renowned for quality and innovation. The Presto pressure cooker revolutionized cooking by significantly reducing cooking times and preserving nutrients, becoming a household staple.

In 1941, the National Pressure Cooker Company, renowned for its Presto® pressure cooker, encountered significant challenges as the United States entered World War II. With aluminum designated as a strategic resource, production was halted. The unexpected passing of founder Everett R. Hamilton in 1942 further exacerbated the crisis. Lewis E. Phillips and Jay Phillips acquired the company, averting bankruptcy by transitioning to wartime manufacturing. They repurposed the Eau Claire plant to produce artillery fuzes, bomb components, and rocket fuzes, employing a considerable number of women workers. National Presto earned five esteemed Army-Navy “E” Awards for excellence in war production. This strategic shift enhanced the company's engineering capabilities, which later benefited postwar consumer products. Despite the suspension of consumer sales, Presto supported the home front through "Victory Canning" campaigns, promoting food self-sufficiency.

Following World War II, National Presto swiftly transitioned its Eau Claire facility from defense to consumer manufacturing, resuming the production of pressure cookers, a key component in home food preparation. In 1948, the company introduced the Presto® Vapor Steam Iron, its inaugural electric appliance, marking its foray into the electric housewares market. The 1950s experienced rapid growth in electric kitchen appliances, fueled by advancements in precision manufacturing from the wartime era. Significant innovations included 6-quart pressure cookers, electric skillets and griddles, hair dryers, electric toothbrushes, coffee makers, and food warmers.

In 1953, the introduction of the Control Master® heat control system enabled removable and submersible heating elements, enhancing both convenience and safety. By the late 1950s, Presto's appliances were available nationwide, and in 1958, it launched the first fully automatic stainless-steel coffee maker. Melvin S. Cohen assumed the role of President in 1960, emphasizing fiscal prudence and innovation. The 1960s saw a focus on convenience appliances for modern households, reinforcing Presto's status as a leader in small kitchen appliances and paving the way for a public offering and broader investment.

On March 3, 1969, National Presto Industries, Inc. commenced trading on the New York Stock Exchange under the ticker symbol “NPK,” a designation it continues to hold. By the late 1960s, the company had expanded its product line beyond pressure cookers to include a variety of electric housewares, establishing a reputation for financial prudence, consistent growth, and product innovation. Its Presto® line of kitchen appliances achieved strong national brand recognition. Becoming a public company provided strategic benefits, such as access to capital for expansion, increased visibility within the investment community, the ability to reward long-time shareholders and attract institutional investors, and enhanced credibility and governance transparency. The IPO was led by Melvin S. Cohen and he emphasized that the public offering would not change the company’s values of long-term planning, low debt, and product quality. Despite going public, the company maintained significant family ownership and influence through the Cohen and Phillips families, allowing it to operate independently while maintaining access to public markets.

Between 1970 and 1980, National Presto Industries transformed the landscape of small kitchen appliances by addressing the increasing demand for convenient, time-saving solutions among the growing middle class of that era. Their innovations included a compact appliance for single-serving burgers and a small electric deep fryer, both ideal for small households and limited spaces. The introduction of the FryDaddy® and GranPappy® followed, featuring self-regulating temperatures and distinctive designs. Presto also ventured into the hot-air popcorn popper market, appealing to health-conscious consumers, and modernized its pressure cooker with enhanced safety features. Emphasizing compactness, user-friendliness, and vibrant designs, Presto's products were perfectly suited for singles and smaller families.

From 1981 to 2000, Presto continued to evolve, concentrating on smaller households and health-conscious cooking. This period saw the introduction of enduring products such as electric slicers, air poppers, and countertop ovens. Noteworthy innovations included the handheld electric slicer and shredder, as well as the Professional SaladShooter® for bulk food preparation. The microwave popcorn popper and rotating pizza oven underscored Presto's dedication to efficiency and health. Successful patent enforcement bolstered their innovations, while a variety of electric hot pots, griddles, and slow cookers catered to the wellness trends of the 1990s.

The Houseware/Small Appliance Industry - A Five Force Analysis

Today, the houseware and small appliance industry encounters a moderate to high threat from new entrants, primarily due to low capital requirements and the ease of launching products through e-commerce platforms such as Amazon and Shopify. The rise of private-label products from major retailers further intensifies competition. Nonetheless, established brands retain a competitive advantage through strong brand loyalty, regulatory barriers, and the difficulties new entrants face in accessing premium retail distribution channels. Suppliers generally possess low bargaining power because many components are commoditized and sourced globally, enabling major brands to secure favorable terms. However, supply chain disruptions and the demand for specialty parts can temporarily enhance supplier power. Buyers wield significant bargaining power due to low switching costs, e-commerce price transparency, and the influence of large retailers who demand discounts and exclusivity. The threat of substitutes is moderate, with multi-function appliances, dining out, and high-end cookware serving as alternatives to traditional appliances. The industry experiences extremely high competitive rivalry, driven by a large number of competitors, frequent innovations, price wars, and short product life cycles.

Strategic Movement towards the Defense Industry

In the early 2000s, National Presto Industries redefined its business strategy by entering the defense industry through strategic acquisitions, expanding beyond its traditional focus on consumer housewares. Faced with a mature and highly competitive small appliance market, the company, led by CEO Maryjo Cohen, leveraged its historical expertise in defense manufacturing to pursue defense contracting as a means to stabilize earnings. Notable acquisitions included AMTEC Corporation in 2001, specializing in 40mm ammunition; Spectra Technologies in 2003, which broadened the company's offerings to include fuzes and explosives; and Amron LLC in 2006, which enhanced metal cartridge manufacturing capabilities. These strategic initiatives positioned Presto as a prominent defense supplier, providing products such as grenade ammunition and artillery fuzes, and securing long-term contracts with the U.S. Army. By 2025, the defense segment had become Presto's largest division, accounting for over 70% of net sales and ensuring profitability during consumer market downturns, supported by an order backlog exceeding $1 billion.

A Five Force Analysis of the US Defense Industry

The defense industry encounters minimal threat from new entrants due to significant barriers such as stringent regulations, substantial capital requirements, and the need for established trust and relationships. Supplier bargaining power is generally low to moderate because most materials are readily accessible, though the influence of suppliers can increase with specialty items. Buyers, notably the U.S. Department of Defense, hold considerable power by imposing strict terms and maintaining the ability to switch vendors. The threat of substitutes is negligible, owing to the critical and specialized nature of defense products. Rivalry among existing competitors is intense, driven by a limited number of contracts, aggressive bidding, and industry consolidation.

Presently, National Presto Industries, Inc. competes in three primary industries, each represented by a distinct business segment:

Summary: Segment Contributions in 2024

Segment	Net Sales (2024)	% of Total	Role in FY 2025
Defense	$284 million	~73%	Main growth driver; backlog > $1B
Housewares / Small Appliance	$102.8 million	~27%	Stable consumer business
Safety	$1.4 million	~0.4%	Nascent, investment phase

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Founded in Wisconsin: Eau Claire's National Presto

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