Fourth generation CEO takes helm at century-old Chattanooga firm

A prosthetic technician at a Fillauer facility in Chattanooga assembles a below-the-knee limb system.
A prosthetic technician at a Fillauer facility in Chattanooga assembles a below-the-knee limb system.
photo Staff Photo by Dan Henry / Shaded foot shells are on display at a Chattanooga office of Fillauer.

Michael Fillauer

› Job: Fillauer Cos. Inc. chief executive› Age: 41› Background: Grew up in Knoxville› Experience: Began career as a certified prosthetist orthotist and upper extremity prosthetic specialist; joined Fillauer board in 1993; president of Fillauer LLC in 2007› Quote: “We’ve got a reputation of being innovative and on the cutting edge. We want to remain there and drive forward new technologies and techniques.”

New Fillauer Cos. Inc. chief Michael Fillauer was in Germany last week for an international trade show with hopes the Chattanooga-based orthotic and prosthetic device maker can bolster foreign sales.

"It's a good opportunity to expose our product to other markets," said Fillauer, recently named as the fourth generation to lead the business begun by great-great-grandfather George Fillauer Jr.

Michael Fillauer, 41, was elevated to the top post about a month ago after having served the last nine years as president of Fillauer LLC, which he termed the local manufacturing backbone for the 102-year-old venture.

Fillauer, who joined the privately held company's board in 1993, is replacing Ken Driver. He'll continue to serve on the board as executive vice chairman, according to the company. Karl Fillauer, the new CEO's father, is the board's chairman.

Dennis Williams will remain as president and chief operating officer of Fillauer Cos.

Also, Sheri Hassler, Fillauer Cos.' director of operations for the past nine years, was named president of Fillauer LLC.

Fillauer said he plans to be "a very hands-on CEO."

"It's something I'm definitely proud of and glad to step up and take the challenge," he said.

One strategy on which the company is working is bringing together as one brand the individual units within Fillauer Cos., the new CEO said.

The business made a lot of acquisitions in the 1990s, and those units continued to have a lot of autonomy and often kept their own names.

"We're bringing everything together under the Fillauer name," Fillauer said. "Our goal is to create synergy. Our goal is to synergize all the talent we have."

Fillauer Cos. has the second largest product line in the industry and many customers and potential ones don't know that due to the past structure, he said.

In addition, Fillauer said the company plans to continue to develop new products and remain innovative.

"We've got a reputation of being innovative and on the cutting edge," he said. "We want to remain there and drive forward new technologies and techniques."

For Chattanooga, the CEO said that hopefully means more growth.

Last year, Fillauer Cos. embarked on one of its biggest expansions in Chattanooga as it shifted a key division from California to its home town. The business bolstered its workforce by up to 40 jobs and added manufacturing space near its Amnicola Highway headquarters in a multimillion-dollar project.

"It just made sense," said Williams at the time.

The company now employs about 130 people in Chattanooga and 300 worldwide, with key locations in Salt Lake City, Asheville, N.C., and Stockholm, Sweden.

Fillauer declined to give annual company sales figures, but said he expects growth probably within that of the industry.

The sector had seen a downturn in the last few years as it digests changes with health care reform, he said, and it tries to figure out new rules and operates under a changed-up framework.

One technology in which Fillauer has invested is 3-D printing, doing so at all its locations, according to Fillauer.

"We're utilizing it for multiple things," he said, such as product design, prototypes and manufacturing.

Also, a key advantage is that Fillauer continues to have a clinical focus and an interface between people and components, the company chief said.

"That is invaluable," he said.

The family-owned business was started in 1914. It began across from Erlanger and moved to its current location in 1972.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.

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