Fourth Generation Joins Walthers

Phil Walthers with daughter Stacey Walthers Naffah

Stacey Walthers Naffah was recently profiled in BizTimes Milwaukee. Read the article here.

May 8, 2009, Milwaukee, Wis. - When Stacey Walthers Naffah was young, model trains were already an important part of her life. And it wasn't just a set running under the tree at Christmas, or down in the basement. For the Walthers family, model trains literally filled an entire warehouse, one that included manufacturing, distribution and consumer sales operations. Today, when many small businesses have long-since been sold or offer few opportunities for family members, the company founded by her great-grandfather William K. (Bill) Walthers in 1932, is still going strong. For Stacey, the first member of the fourth generation to officially join the firm, her new duties as Consumer Marketing Manager offer many of the same challenges that Bill faced 77 years ago.

Historically, model railroading experiences periods of growth during hard economic times. Traditionally, the hobby appeals to many because of its roots as do-it-yourself, low cost family entertainment. For others it's the diversity, as modelers can do everything from carpentry to historic research to art. But it's also fueled by its ability to constantly adapt new technology.

Walthers ability to adapt to the changing needs of its customers has also been a key to its long-term survival. In 1946, Bruce Walthers joined the firm. After taking over as President in 1958, he transformed the company from a small manufacturer to a whole-line distributor at a time when many thought the hobby was dead, a casualty of television and the then-new slot cars. In 1972, Phil Walthers came on board as Wholesale Division Vice President and became President in 1984. During his tenure, the company has continuously expanded, creating new hobby brands and diversifying operations.

Today, Wm. K. Walthers, Inc. still calls Milwaukee home. The firm's primary facility occupies an entire 114,000 square foot warehouse on the city's north side, where 100 employees are involved in all aspects of the operation. Walthers serves a network of 3,000 independent hobby shops at home and abroad, so most of the facility is occupied by the Distribution Center, supporting the company's role as the leading distributor of model railroad products in the world. Here, along with Walthers' own engines, cars, buildings, racing sets and more, rows of shelves hold over 100,000 items from tiny screws to amazingly detailed replicas of actual locomotives, produced by some 300 other firms. Walthers also maintains a marketing and sales office in Baltimore, Maryland, following its acquisition of Life-Like Products in 2005.

As the oldest of Phil and Carole Walthers four children, Stacey is no stranger to the job ahead. When she was younger, she often came in on Saturdays to help her father and grandfather. In later years, she worked in the Distribution Center and spent one summer during college as an intern in the Publications Department.

Although always encouraged to do something on their own, the door was always open to the Walthers children if they wished to someday join the family business.

Interested in business and marketing, Stacey attended the Boston College Carroll School of Management, graduating in May of 1996 with a Bachelor's of Science degree in Marketing and Psychology.

During college, the idea of joining the family business was discussed more seriously, but as Stacey said, "I needed and wanted to be worthy of a job with the company if one was ever offered."

Following graduation, she began her career at J. Walter Thompson (one of the world's leading advertising agencies), and later worked at Reader's Digest. In 2002, Stacey joined People magazine in Chicago, working with clients that included Best Buy, Kraft, McDonald's, Procter & Gamble and Target to develop successful marketing programs. At this point, she decided to pursue her Master's degree, while working full-time. Completing her studies in June of 2005, she graduated with an MBA from the Northwestern University Kellogg School of Graduate Management, majoring in Entrepreneurship and Non-Profit Management with a concentration in Marketing.

Her grandfather's death in 2007 however, proved to be a significant turning point in both her professional and personal life. Having grown up seeing the working relationship between her father and grandfather left a lasting impression. "My family has instilled strong values and provided me with excellent role models of hard work and commitment to family and community. I've always been proud of what the company means to the Walthers family and how several generations have contributed to its success, each making their own lasting mark on the business," Stacey said.

During 2008, the company recognized the need to do more in-depth consumer research and marketing programs. But the challenge of finding suitable applicants for the position, or qualified outside firms proved difficult. Unlike products that can easily be targeted to specific audiences, model railroaders run the gamut from first-time set buyers to experienced builders - some with well over 50 years of involvement in the hobby.

As such, both the timing and opportunity proved ideal for Stacey. "As a company, we've been increasingly aware we have to pay more attention to how consumers use our products, what they think of our current lines, and what they'd like to see us make in the future. These are big jobs, and in today's economy they're critical to our continuing success and profitability," Stacey said.

Difficult times have opened a lot of doors for Walthers over the years, firmly establishing it as an industry leader. "Having Stacey join the firm at this time is a very positive investment, not just in the future of our company, but for the growth of the entire model railroad industry and hobby," said Phil Walthers.

Interestingly, Stacey starts her new position on May 11, the same date her great-grandfather began operations in 1932, and she faces many of the same difficulties of building the business in a tough economy. "I'm always eager to find new challenges and meaningful work. This new position gives me the ability to make contributions, and I feel blessed to have such an opportunity," she said.

Stacey, husband Chris, son Jack and daughter Cate have recently relocated to the Milwaukee-metro area.

"This is more than just a job. This is an opportunity to contribute to my family's legacy. I'm coming back to my roots armed with relevant experience earned outside of the family business. And as today's consumers look for home-based entertainment that's suitable for the whole family, the hobby and the company have incredible growth opportunities ahead. Whether it's a youngster just getting started, or a modeler with decades of experience, you see the same glimmer of excitement in their eyes every time they start up their favorite train. I'm committed to continuing the Walthers legacy of providing high quality products and services to model railroad consumers around the world," she said.

Wm. K. Walthers, Inc. is the leading supplier of model railroad products in the world. Founded in Milwaukee in 1932 by William (Bill) Walthers, and now in its third generation of family ownership, the firm employs 100 people at its Milwaukee and Baltimore offices. The company supplies 3,000 hobby shops at home and abroad with 100,000+ products from over 300 different suppliers.