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Starkey Hearing Technologies

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Starkey Hearing Technologies
Company typePrivate
IndustryHearing instruments
Founded1967
FounderWilliam F. Austin
Headquarters
Eden Prairie, Minnesota
,
U.S.
Area served
Worldwide
Key people
William F. Austin, Founder and CEO
Tani Austin, Co-Founder, Starkey Hearing Foundation
ProductsHearing instruments
Number of employees
4000+
Websitestarkeyhearingtechnologies.com

Starkey Hearing Technologies is a privately held, American-owned and operated company founded in 1967 by William F. Austin. Based in Eden Prairie, Minnesota, it is the only American-owned hearing aid manufacturer in the world and the largest hearing aid manufacturer in the United States. Recognized for its innovative design, development and distribution of comprehensive digital hearing systems, Starkey Hearing Technologies employs more than 4,800 people and operates 21 facilities and conducts business in more than 100 markets worldwide. Starkey Hearing Technologies is active in more than 18 countries throughout North America, South America, Central America, Europe, Asia and Australia.

With sales of more than 1 million hearing aids annually, Starkey Hearing Technologies is one of the world’s leading hearing aid manufacturers.[1][2] The company develops, manufactures and distributes hearing aids via three distinct brands – Audibel, NuEar and its original brand, Starkey..

History

William (Bill) F. Austin was born in Springfield, Missouri to his father, J.E. "Dutch" Austin, a Georgia-Pacific lumber grader and his mother, Zola, a factory worker. Bill grew up in Garibaldi, Oregon with the intention of becoming a doctor. In 1961, he enrolled in a pre-med program at the University of Minnesota but later dropped out to open a hearing instruments shop in St. Louis Park, Minnesota.[3][4]

In 1967, Austin started Professional Hearing Aid Service out of his home. He built ITE (in-the-ear) hearing aids, but had difficulty finding a good repair service. He soon partnered with a technician from Chicago who had relocated to Minnesota and the two started their own repair company. Austin employed technicians that worked out of his basement to repair and service hearing aids of all types. Professional Hearing Aid Service was the only all-make hearing instrument repair service at the time.

Austin eventually moved his company out of his home and into a large office building located at 4725 Excelsior Boulevard in St. Louis Park. It was during this time that Austin started charging a flat rate for hearing aid repairs, something that was unheard of in the hearing aid industry.

1970s

In 1970, Austin purchased Starkey Laboratories, a small earmold company and merged it with Professional Hearing Aid Service, retaining the Starkey name. Soon after, Starkey unveiled the hearing industry's first custom, in-the-ear hearing aid, the Custom Ear (CE-1).[5]

Starkey Laboratories grew throughout the 1970s. The company sold just under 2000 hearings aids in 1972, but sales grew to more than 65,000 units by 1976. Starkey was now one of the top ten hearing aid manufacturers in the United States. In addition, Austin pioneered a 30-day free trial, which allowed hearing aid dealers to return their hearing aids if patients weren't satisfied. He also offered a return window for hearing aid repairs. Austin extended the trial period to 60 days in 1974 and eventually extended it again to 90 days. This policy stunned his competitors, but has since become standard procedure for the hearing aid industry. In addition, the trial period window allowed customers time to demonstrate custom hearing aids to patients by relying on the no-risk free trial policy. Between 1975 and 1983, in-the-ear hearing aid sales grew from 12 percent to nearly 50 percent and Starkey was recognized as the world's premier manufacturer of custom hearing aids.

In 1973, Austin established the Starkey Fund, a battery-recycling program with proceeds going to help needy people receive hearing assistance. "If we encountered a patient who needed help and couldn't afford a hearing aid" said Austin, "we'd just write 'Starkey Fund' on the order. In 1983, we decided we needed something lasting, we needed a formal foundation."[6] This program would evolve into the Starkey Hearing Foundation, which has given away more than 1.5 million hearing aids to people in need.

Starkey Labs continued to grow and expand. In 1975, the company performed more than 80,000 hearing aid repairs and was working with a network of more than 2700 hearing aid dealers. The company headquarters relocated to a 13-acre campus in Eden Prairie, Minnesota. Since the relocation, the Starkey campus has grown to more than 40 acres.

in 1976, Starkey Labs opened a facility in Manchester, England. Over the next few years, additional facilities would open in Toronto, Paris, Hamburg, Germany and Glencoe, Minnesota.

In 1977, the CARE program was introduced. CARE was designed to both benefit the patient and improve the image of the hearing industry through the creation of educational materials that promotes the virtues of hearing well.

1980s

Starkey Labs releases the CE-5 Series, the hearing industry's first canal hearing aid.

A major turning point in the history of Starkey Labs, and the hearing aid industry in general, came in 1983 when President Ronald Reagan was fit with Starkey's new INTRA hearing aids.[7] Several photos of Reagan wearing hearing aids led to a wider acceptance of the devices among the general public. This resulted in increased sales of hearing aids throughout the entire industry. Reagan was fit on September 7, 1983. Word of this was leaked to the press two days later. Starkey's orders doubled in a week, and then double again the following week. Following the fitting, Austin made several personal trips to Washington D.C. and Palm Springs to meet with the President and personally ensure that he was satisfied with the fitting.

This incident dramatically raised Austin's public persona both domestically and internationally. He soon began to personally handle hearing aid fittings for many celebrities, professional athletes, world leaders and public figures. Many of these relationships were instrumental in the development of the Starkey Hearing Foundation, which was officially established in 1984.

In 1986 Starkey Labs introduced the Secret-Ear, a more appealing canal hearing aid and the Earborne Headset. Earborne was the world's first custom headset. It incorporated a custom molded earpiece and a lightweight microphone. By the end of the year, custom hearing aids would account for more than 75 percent of all domestic hearing aid sales.

1990s

Throughout the rest of the 1980s and into the 1990s, the hearing aid industry saw a period of large-scale consolidation. Austin and Starkey Laboratories expanded in its own right, obtaining and promoting its own hearing aid brands. Starkey purchased Omni Hearing Systems and acquired San Diego-based NuEar. The Audibel brand was created in 2000 when Austin joined forces with several unhappy Beltone dealers. Microtech was also established as a primary brand under the Starkey umbrella. Starkey aggressively expanded internationally into Australia, Europe and Asia. The company also committed itself to manufacturing by hiring engineers to facilitate new products designs and innovation.

The focus on innovation allowed Starkey to learn how to build smaller hearing aid shells. This led to another product breakthrough in 1993, with the introduction of the Tympanette, or CIC (completely-in-the-canal), hearing aid. The CIC was the first hearing aid to fit entirely in the ear canal, providing patients with both acoustic and cosmetic benefits. It immediately became the smallest and most popular hearing aid in the industry, leading to increased demand for product. "With 1994, [the company] was right in the middle of Tympanette classes," said Brandon Sawalich, Starkey Hearing Technologies VP of Sales and Customer Service. "We became a leader in training programs and certifying people to fit these new styles of products." Starkey also began developing many of the tools that professionals use every day, including the video otoscope, advanced silicone impression materials and work benches.

By 1997, Starkey Labs was a global manufacturer with a global customer base. "It was a period in which product development was becoming more general and geared towards the demands of a global economy," said Sawalich. "We began to adapt our research and products to make sure they were applicable." The company had more than 40 factories with sales in more than 100 global markets. By 2000, industry consolidation over the previous decade left six major hearing aid manufacturers remaining. Starkey was the only major American hearing aid manufacturer to survive, and to this day, remains the only major U.S based hearing aid manufacturer.

2000s

Wiliam F. Austin Center lobby

In 2004, the Starkey Hearing Research Center opened in Berkeley, California and focuses on long-term hearing research issues as well as product development.[8][9] The research center works with multiple area universities to research and develop technical advances for the hearing impaired. It is located one block from the University of California, Berkeley campus and plays a critical role in the understanding of the science of hearing and the science of hearing aids. Many of the products and ideas in development at the research facility will not be seen for many years.

In 2006, Starkey Laboratories revolutionized the hearing aid industry with the introduction of Destiny, the first hearing aid to utilize digital technology in a completely new way to eliminate virtually all feedback in hearing aids. Zōn followed Destiny in 2008 and received several design and consumer electronics awards due to its innovative design and style.[10][11] Also in 2006, the company introduced Inspire, a computer software fitting system that allowed professionals to program hearing aids.

In 2011, Starkey introduced AMP, an tiny amplification device, followed by SoundLens in 2012. SoundLens was the industry's first IIC (invisible-in-the-canal) hearing aid. IICs are built to fit past the second bend of the ear canal, allowing the faceplate to be seated deeply in the ear. The aids are so small, and so far into the ear, that they almost appear to be invisible. Many hearing aid wearers who prefer that others do not know they have hearing loss prefer to wear IICs.[12]

Present

Halo 2 i2400 and Muse i2400

Starkey Laboratories changed its name to Starkey Hearing Technologies in 2012. That same year, Starkey hosted the very first Hearing Innovation Expo, held at the Cosmopolitan of Las Vegas. The event was a first for the hearing industry and was attended by more than 3,000 hearing care professionals. Highlights included a keynote address from President Bill Clinton, speeches from industry thought leaders, world-class scientists and executives from Fortune 500 companies.[13][14]

Magic Johnson, speaking at the 2016 Hearing Innovation Expo

The second Hearing Innovation Expo returned to the Cosmopolitan in January 2014, again headlined by former presidents. Both Bill Clinton and George W. Bush delivered keynote addresses for those in attendance. Expo 2016 was held January 20-24 and included Ben Affleck, Magic Johnson, Presidents Bush and Clinton, author and motivational speaker Andy Andrews, Randi Zuckerberg, author Daniel Pink, entrepreneur Peter Diamandis, author Mike Maddock and panelists from ABC's Shark Tank, Barbara Corcoran, Kevin O'Leary, Daymond John and Dallas Mavericks owner Mark Cuban. [15][16][17][18]

In 2014, Starkey debuted Halo, a Made for iPhone hearing aid, and the TruLink Hearing Control App that, for the first time, allowed direct connection between hearing aids and Apple devices including the iPhone, iPad and iPod, allowing phone calls, music, video content and more to stream directly into the hearing aids with pristine sound quality.[19][20][21]

Starkey's president Jerry Ruzicka, who had been with the company for 38 years, was abruptly fired in September 2015, along with a handful of senior managers. The cause was not given, citing an "ongoing investigation."[22] In October 2015, a lawsuit was filed against Starkey that alleges former president Ruzicka and seven other employees were improperly terminated for not promoting CEO Bill Austin's stepson.[23] In November 2015, agents with the FBI and Internal Revenue Service raided Ruzicka's home, taking records, computers and a car. Ruzicka has been accused of stealing millions from his former company. [24] September 2016, Federal prosecutors have charged five people, including 3 former executives with stealing more than 20 million dollars from Starkey Hearing Technologies. [25]

In March 2016, the company introduced a brand new platform called Synergy.[26] Release highlights included the industry's first hearing aid to feature dual signal processors, one dedicated to music and the other dedicated to speech. New hearing operating on the platform were launched, including Halo 2, and the new Muse product family.[27] In addition, Starkey also unveiled the hearing industry's first wireless IIC hearing aid, SoundLens Synergy.

Starkey Hearing Foundation

File:Starkey Hearing Foundation logo.png
Bill and Tani Austin with Mohamed Gharib-Bilal, Vice President of Tanzania, during a Starkey mission to Tanzania in November 2014.

In 1973, Bill Austin created the Starkey Fund, which was a battery-recycling program with proceeds aimed at helping people in need receive hearing assistance. This fund evolved into the Starkey Hearing Foundation, which was officially founded in 1984 by Bill and Tani Austin.

Bill Austin with one of the thousands of individuals who have been helped globally through the efforts of the Starkey Hearing Foundation.

In 1985, Starkey Hearing Foundation conducted its first mission at XV World Games for the Deaf in Los Angeles, fitting more than 800 deaf athletes.

In 2015, Starkey Hearing Foundation was the official Healthy Hearing partner of the Special Olympics World Summer Games in Los Angeles.[28] As the Healthy Hearing partner, the foundation provided free hearing health exams and free hearing aids to Special Olympics athletes.

The foundation fits more than 175,000 free hearing aids annually to children and adults through global hearing missions all around the world and through the daily efforts of its domestic Hear Now program. As a member of the Clinton Global Initiative, the foundation has pledged to fit more than one million hearing aids by the end of this decade.[29][30][31]

Austin’s philosophy is that the gift of hearing opens up a whole new world of opportunity by connecting individuals to life and helping them realize their potential. The goal of the Foundation is not only to help restore hearing, but to empower people with the ability to build themselves better lives and the knowledge that they too can help those around them.[32]

The Starkey Hearing Foundation works closely with strategic partners in each country it travels to. These partners include national and regional health leaders, schools and non-government organizations. Members of the foundation recruit and train local volunteers to help ensure the long-term success and sustainability of each hearing mission.[33]

The foundation is committed to global hearing health and leads a national program called Listen Carefully. Through music and education, Listen Carefully aims to help teens understand the science of hearing.[34]

President Clinton with entertainer Christopher Massey and basketball players Karl-Anthony Towns and Tyus Jones at the So the World May Hear Awards Gala

Every year, Starkey Hearing Foundation holds the So the World May Hear Awards Gala. The gala recognizes the energy and efforts of individuals who have contributed to supporting hearing health programs and global initiatives aimed at making the world a better place. Past honorees include Presidents Bill Clinton and George W. Bush, Archbishop Desmond Tutu, Sir Richard Branson, Ashton Kutcher and Forest Whitaker. Each gala includes live entertainment and music. Past performances have included Sir Elton John, Garth Brooks, Lionel Richie, John Legend and Sammy Hagar, Katy Perry, Gene Simmons of KISS, Jessica Sanchez, Matt Nathanson and 2Cellos, and comedians Billy Crystal and Robin Williams.[35][36]

The 16th annual So the World May Hear Awards Gala was held on July 16, 2016 at the RiverCentre in downtown St. Paul, Minnesota. Hosted by former Tonight Show host, Jay Leno, actress Jennifer Garner and Prime Minister Tony Blair were among those honored for humanitarian contributions. Performers included singers John Mellencamp, Alice Cooper and actor Johnny Depp of the Hollywood Vampires. [37] [38][39]

In addition to awards and speeches, the event is also notable for the amount of money it generates to combat hearing loss. The 2016 gala helped raise more than $9 million to support hearing health programs and initiatives around the world.[40]

Operation Change

Operation Change is a 10-part documentary series that began airing on OWN: Oprah Winfrey Network in June 2014. The series features co-founders Bill and Tani Austin and their son Steven Sawalich from Starkey Hearing Technologies. They are joined by celebrities and philanthropists like Bill Clinton, Elton John and Richard Branson as they partner with local organizations around the world to face some of the world’s most challenging issues.[41][42][43]

References

  1. ^ http://hearinghealthmatters.org/hearingnewswatch/2013/research-firm-analyzes-market-share-retail-stores-prospects-of-major-hearing-aid-makers/
  2. ^ http://www.hohypf.org/2013/04/leading-hearing-aid-manufacturers-407/
  3. ^ http://www.forbes.com/forbes/welcome/
  4. ^ http://msthalloffame.org/william_austin.htm
  5. ^ https://starkeypro.com/about-starkey/history
  6. ^ http://msp.imirus.com/Mpowered/book/vds2015/i11/p30
  7. ^ http://www.nytimes.com/1983/09/08/us/reagan-begins-to-wear-a-hearing-aid-in-public.html
  8. ^ http://www.research.starkey.com/Default.aspx
  9. ^ http://www.audiologyonline.com/interviews/interview-with-brent-edwards-ph-1541-1541
  10. ^ http://www.wilmingtonaudiology.com/starkey-laboratories-unveils-the-only-smart-hearing-aids-that-provide-effortless-near-perfect-hearing
  11. ^ http://www.audiologyonline.com/releases/starkey-s-zon-hearing-aid-2662
  12. ^ http://preview.starkeypro.com/research/publications/white-papers
  13. ^ http://hearinghealthmatters.org/hearingnewswatch/2012/starkey-hearing-innovation-expo-draws-3000-from-around-the-world/
  14. ^ http://www.businesswire.com/news/home/20120112006099/en/Starkey-Hearing-Technologies%E2%80%99-Hearing-Innovation-Expo-2012#.VItnb9LF840
  15. ^ http://www.starkey.com/blog/2013/12/5-hearing-innovation-expo-questions-with-senior-vp-brandon-sawalich
  16. ^ http://www.hearingreview.com/2014/01/starkey-hearing-innovations-expo-brings-3-400-practice-owners-to-las-vegas/
  17. ^ http://finance.yahoo.com/news/starkey-hearing-technologies-hosts-another-155300939.html
  18. ^ http://www.startribune.com/business/240332311.html
  19. ^ http://www.forbes.com/sites/anthonykosner/2014/08/16/made-for-iphone-hearing-aids-hands-on-with-halo-a-mission-critical-wearable/
  20. ^ http://www.nytimes.com/2014/04/24/technology/personaltech/app-controlled-hearing-aid-improves-even-normal-hearing.html?_r=0
  21. ^ http://health.howstuffworks.com/medicine/modern-technology/hearing-aid.htm
  22. ^ "Fired Starkey Hearing Technologies president hires lawyer". Star Tribune. 11 September 2015. Retrieved 16 October 2015.
  23. ^ "Lawsuit alleges Starkey execs were fired in battle with CEO's stepson". Star Tribune. 3 October 2015. Retrieved 16 October 2015.
  24. ^ http://www.startribune.com/fired-starkey-president-jerry-ruzicka-files-whistleblower-suit-against-company/365434331/
  25. ^ https://www.justice.gov/usao-mn/pr/five-indicted-massive-fraud-perpetrated-against-starkey-laboratories
  26. ^ http://www.marketwired.com/press-release/starkey-hearing-technologies-revolutionizes-hearing-industry-with-made-life-hearable-2101817.htm
  27. ^ http://www.startribune.com/new-starkey-hearing-aid-will-help-people-to-not-miss-a-beat/372592251/
  28. ^ http://globenewswire.com/news-release/2015/07/16/752784/10142020/en/STARKEY-HEARING-FOUNDATION-TEAMS-UP-WITH-SPECIAL-OLYMPICS-FOR-THE-2015-WORLD-SUMMER-GAMES.html
  29. ^ http://theadvocate.com/home/5076807-125/hundreds-fitted-with-new-hearing
  30. ^ http://www.cnn.com/2013/07/31/world/africa/clinton-africa/index.html?iref=allsearch
  31. ^ http://starkeyhearingfoundation.org/media_mentions#/media_mentions
  32. ^ http://dailynightly.nbcnews.com/_news/2012/10/15/14459836-a-teenager-meets-her-hearing-angels?lite%23__utma=238145375.988352413.1350343141.1350343141.1350343141.1&__utmb=238145375.1.10.1350343141&__utmc=238145375&__utmx=-&__utmz=238145375.1350343141.1.1.utmcsr=google%7Cutmccn=(organic)%7Cutmcmd=organic%7Cutmctr=(not%20provided)&__utmv=238145375.%7C8=Earned%20By=msnbc%7Ccover%7Cnbc%20nightly%20news%20with%20brian%20williams=1^12=Landing%20Content=Mixed=1^13=Landing%20Hostname=www.msnbc.msn.com=
  33. ^ http://www.gobogalusa.com/lifestyle/article_6c86bd10-0825-11e3-85a9-0019bb2963f4.html
  34. ^ http://www.huffingtonpost.com/2013/09/18/poverty-rate_n_3943694.html
  35. ^ https://screen.yahoo.com/cbs-local/starkey-hearing-foundation-host-annual-155200370.html
  36. ^ http://www.usatoday.com/story/life/music/2014/07/31/elton-johns-philanthropy-reaches-hearing-disabled-in-philippines/13395955/
  37. ^ http://www.citypages.com/arts/starkey-gala-2016-we-ask-johnny-depp-about-pokemon-jay-leno-about-prince-8443387
  38. ^ http://kstp.com/article/stories/s3862413.shtml
  39. ^ http://www.kaaltv.com/article/stories/S3861784.shtml?cat=10151
  40. ^ http://starkeyhearingfoundation.org/gala#/gala/overview
  41. ^ http://www.hearingreview.com/2014/04/starkey-hearing-technologies-operation-change-documentary-series-air-oprah-winfrey-network/
  42. ^ http://tvbythenumbers.zap2it.com/2014/04/01/10-part-documentary-series-operation-change-to-premiere-monday-june-23-on-own/250015/
  43. ^ http://variety.com/2014/tv/news/bill-clinton-elton-john-featured-in-owns-operation-change-1201151198/
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