Emerson History

Emerson was founded in 1890 in St. Louis, Missouri, as a manufacturer of electric motors and fans. Over the past 100-plus years, Emerson has grown from a regional manufacturer into a global technology solutions powerhouse.


Modest Beginnings

Two Scotland-born brothers, Charles and Alexander Meston, who saw a tremendous business opportunity in patenting a reliable electric motor, started the company. They persuaded John Wesley Emerson, a former Union army officer, judge and lawyer, to be their principal investor. The company, then known as Emerson Electric Manufacturing Co., quickly began exploring new uses for the largely untested technology of electricity in a variety of household and commercial applications.

In 1892, Emerson sold the first electric fans in America — a product for which the company soon became renowned. As the company grew, it expanded its product line by attaching electric motors to new products such as sewing machines, dental drills, player pianos and power tools.

During World War II, Emerson was a supplier to the U.S. Army Air Force, becoming the world's largest manufacturer of aircraft gun turrets. In the postwar era, the company faced the dual challenges of rationalizing its highly seasonal fan product lines and responding to heightened competition from much larger electric motor manufacturers.

Diversification with Keen Focus Those issues were addressed head-on in 1954 when the company's new chief executive, W.R. "Buck" Persons, retooled and decentralized Emerson's manufacturing base and began a continuing process of diversification. The company rapidly targeted high-growth markets and then made acquisitions to position Emerson favorably within those markets. Persons reaffirmed a longstanding company policy of manufacturing components rather than end products, and also instituted a strong focus on cost reductions, quality improvements and formal planning. When Persons retired as CEO in 1973, Emerson had significantly expanded its operations from 4,000 employees in two plants in 1954 to 31,000 employees in 82 facilities. Product lines had grown from five basic products to hundreds, and in the process, Emerson had become a diversified corporation with nearly $1 billion in sales.

Building on a Strong Heritage

Under Charles F. Knight, who was named CEO in 1973, Emerson evolved into a major global enterprise producing technologically advanced products used in such markets as telecommunications, electronics, heating, ventilating and air conditioning, and process controls. At the outset of his tenure, Knight expanded and refined a disciplined management process that has become famous in the business management world, with its emphasis on planning and an annual cycle of conferences and reviews, both for divisions and for the corporation as a whole.

During the 1970s and 1980s, Emerson made a series of restructuring moves and strategic acquisitions that allowed the company to reposition its core businesses and diversify into several promising new areas, including electric utility support, computer support and electronics, and process control. In 1984, Knight announced a "best cost producer" manufacturing strategy, with increased emphasis on ever-higher global competitive standards — both in terms of quality and cost.


Investment in Growth

In the 1990s, Emerson continued to upgrade its process and product technologies and markedly increased sales overseas. Under Knight's leadership, the company repositioned itself for growth by launching several initiatives to expand markets and leverage its human and technology resources.

One recent growth initiative includes a $2.5 billion investment in companies focused on fast-growth markets for network power. These companies serve the needs of the rapidly expanding communications industry and buildout of the Internet infrastructure. With the addition of Emerson Telecommunications Products and Emerson Energy Systems in 2000, we added over $1 billion of annualized sales to our core network power capabilities, making Emerson the global leader in highly reliable power systems. In conjunction with this growth initiative we created the Emerson Network Power business, which is currently the largest of Emerson's Brands.

The Emerson Brands

The Emerson Brands are the result of our growth objectives and our repositioning for more customer-focused, solution-oriented initiatives. Each Emerson Brand is comprised of collaborative groupings of our 60-plus divisions operating within similar industries, working together to provide integrated solutions that deliver a competitive advantage for our customers.


Continued Leadership in the New Millenium

Under the leadership of David Farr, named CEO in October, 2000, growth continues to be a top priority. Emerson is seeking to accelerate its growth through infrastructure expansion in the world's developing regions, rapid technological development and investment in fast-expanding markets. Operationally, the company is fostering risk expectance and forward thinking to instill a passion for growth that rivals Emerson's traditional commitment to continuous improvement.

From its modest beginnings in St. Louis, Emerson has grown to become a global leader bringing technology and engineering together, serving its customers throughout the world.