Q&A: Behind Empire Southwest with CEO Jeff Whiteman
Third-generation Empire Southwest CEO Jeff Whiteman takes a look back on the Cat dealership's past 74 years and discusses its...
Jack Whiteman placed a good bet when he relocated his Caterpillar dealership, Empire Machinery, from Oregon to Arizona 65 years ago.
Known today as Empire Southwest, the dealership has a foothold in three of the top four mineral-producing states in the country and a regional hotbed for housing, manufacturing, data centers and semiconductor facility construction.
These large-scale projects demand equipment, and Empire has grown with its customers, expanding its service territory and employee base by over 30% in the past two years through the acquisition of Nevada-based Cashman Equipment Co. The company now has more than 30 locations and over 4,400 employees in Arizona, Nevada and parts of California.
Even after 74 years in business, the company remains family-owned, and Jeff Whiteman, grandson of Jack Whiteman, became president and CEO when his father, John Whiteman, retired in 2002. He has led through the economic uncertainties following 9/11, instituted a strong process improvement model and continues to expand the company portfolio with affiliate companies Empire Truck & Trailer, Empire Renewable Energy and Empire Agriculture.
In addition to Cat equipment, Empire sells, rents and services heavy equipment, tractors, power, trucks, trailers, and pump generation equipment from 180-plus additional name brands to clients in the construction, mining, energy, agricultural and industrial sectors.
Empire has evolved from equipment sales and service to become an industry leader in the rebuilding of equipment, components, precision machining and fabrication. Empire also offers fluid analysis, hydraulic services, equipment rental, operator training and other product and customer support services.
While new equipment sales remain an important part of the business, Empire has shifted its approach in recent years from “selling something” to “solving something” – away from customer transactions to more consultative conversations with clients, where they focus on doing what’s in the best interest of their clients.
The company has a significant parts inventory across 31 parts store locations and over 300 drop locations for delivery of most parts within 24 hours. Clients can buy parts online, from Parts.cat.com, order by phone or in store – new, used, remanufactured or exchange parts.
When a machine goes down, Empire is at the ready with field service specialists and service trucks, lube trucks and welding/machining trucks with the latest diagnostic and repair technology. If larger repairs are needed, the company also employs some of "the best subject matter experts in the industry" across its territory in Arizona, Nevada and parts of California.
Empire says its Cat-certified technicians average 10 or more years’ experience and can perform any task from fabrication and welding to engine and component rebuilds. The company’s longest-tenured employee just celebrated his 50-year anniversary.
The dealership views client problems as an opportunity to offer a new solution and deepen a relationship. As one example, Empire technicians work alongside clients at mining sites to ensure fast service and uptime even in remote areas. Empire also employs trained equipment operators to help clients with new equipment and technology onboarding when machines are delivered to the jobsite.
In his nomination of Empire Southwest, client Dennis Hext of Protek Construction said, “They are always quick to help with standard parts to the most difficult items. We know that we only need to make one call and [sales representative] Billy Rackley will get his team to work and find a solution for us! Empire Cat is our go-to equipment partner."
For those reasons and more, Empire Southwest is Equipment World’s 2024 Big Iron Dealer of the Year.
Equipment World recently sat down with Jeff Whiteman to take a look back on the past 74 years, as well as what the dealership has in store for the future.
What was your first job at the company?
My grandfather wanted me to work in every position in the company, so I understood what is asked of our people and what they go through. It was great guidance, so I started on the steam rack washing parts and machines.
What is the best advice you’ve been given?
When I was a little kid, my grandfather told me the secret to success was to 'take care of the farm and the farm will take care of you.' When I asked him what that meant, he said, 'I'm not going to tell you, but never forget what I’m telling you.' And I never forgot. It simply means take care of your people and your clients and they will take care of you. It was clearly the best advice I ever received. Our goal is simple: help others to be more successful and strive to be the best in whatever we are doing.
What is your proudest accomplishment?
Building on the legacy of those who came before me to make things better for our people and our clients. I think my grandfather and my father would be proud of what we’ve been able to do with the company and the culture we have created.
What keeps you up at night?
That there may be someone in our company that isn’t truly living our corporate values and the impact that could be having.
How do you stay close to your customers and their needs?
I listen to understand and do everything possible to make things better.
How have contractors changed over the years and how have you adjusted to those changes?
Being in the construction, mining, farming and power business isn’t easy and our clients are very focused on improving availability, lowering their costs and increasing their efficiencies. As a result, they want to engage with a partner that knows its stuff and can add real value. We train our teams to problem solve, listen intensely and respond with urgency. Our clients quickly learn nothing is too small or complicated that the Empire team isn’t willing to find or create the best solution. Contractors want you to meet them where they are, follow through on your commitments and treat them well. We invest in technology and tools to stay current with market trends and help our clients be competitive.
What is your biggest challenge when it comes to staffing?
Finding good humans who have the aptitude, work ethic and attitude to thrive in our industry. Also, many of the technical programs have been removed from most high schools which makes things even more difficult. We as an industry have some work to do encouraging the next generation to understand the innovations and possibilities in our business.
Where do you see the largest growth opportunity for Empire?
We saw a lot of growth with the acquisition of the Nevada territory. Our largest growth opportunity now is making sure we are executing against Empire’s Brand Promise. That means making sure we have a culture of passionate and engaged employees who build strong relationships with our clients and simply make doing business with Empire easy.
You’re very invested in innovation. What are the biggest technological changes you think we’ll see in the construction industry in the next 5 years?
There is a lot of great work being done by the best-in-class manufacturers we partner with. We will leverage these advances to ensure our clients see more success in their businesses. I believe we need to focus on advances in technology internally at a far more rapid pace to serve our employees and clients better. Business intelligence, data mining and analytics, machine learning and AI used right and with governance need to become part of our everyday processes.
Any other words of wisdom?
Make things better wherever you are!