Starkey Hearing Technologies

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.

In 1967, Austin started Professional Hearing Aid Service, an all-make hearing instrument repair service, out of his home. The company offered fixed repair charges—and industry first. Austin eventually moved his company out of his home and into a large office building located at 4725 Excelsior Boulevard in St. Louis Park.

In 1971, Austin purchased Starkey Laboratories from Harold Starkey and began to build the foundation for the present-day company, Starkey Hearing Technologies. Throughout the 1970s, Austin grew Starkey from a local at-home hearing instrument repair company to a global leader in building custom hearing aid technologies. Additionally, as the company grew, Austin looked for a way to give back, and in 1978 he created the Starkey Fund, a battery recycling program with proceeds that went to help needy people receive hearing assistance. The Fund would later evolve into the non-profit Starkey Hearing Foundation.

1970s

Starkey Laboratories grew throughout the 1970s. In 1971, Austin purchased Starkey Laboratories, a small earmold company, from Harold Starkey. He then merged it with Professional Hearing Aid Service, retaining the Starkey name. 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 1973, Starkey, unveiled the hearing industry's first custom, in-the-ear (ITE) hearing aid, the Custom Ear (CE-1)[1], the industry’s first 90-day trial period and one-year “Worry Free” warranty. This policy stunned his competitors, but has since become standard procedure for the hearing aid industry. In addition, the trial period window allowed hearing professionals time to demonstrate custom hearing aids to patients by relying on the no-risk free trial policy. In fact, this led to in-the-ear hearing aid sales growing from 12 percent in 1975 to nearly 50 percent by 1983, earning Starkey recognition as the world's premier manufacturer of custom hearing aids. Starkey Labs continued to grow and expand throughout the rest of the 70s with some significant landmark achievements:

• In 1975, the company performed more than 80,000 hearing aid repairs and worked with a network of more than 2,700 hearing aid dealers. The company headquarters were also relocated to a 13-acre campus in Eden Prairie, Minnesota, which today has grown to more than 40 acres.

• In 1976, the company’s first subsidiary was opened in Manchester, England. Over the next few years, additional facilities would open in Toronto, Canada; Glencoe, Minnesota; Hamburg, Germany; and Paris, France.

• 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.

• In 1979, Starkey developed the CHAT hearing aid tester, the Tinnitus Research Audiometer and the Digital Drain Meter—state-of-the-art diagnostic equipment that helped to improve patient service.

Additionally, in 1978 Austin established the philanthropic 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, we'd just write 'Starkey Fund' on the order,” Starkey Hearing Technologies CEO said. “In 1984, we decided we needed something lasting; we needed a formal foundation."[2] Per Austin’s direction, in1984, the Starkey Fund program evolved into the Starkey Hearing Foundation. Officially established in 1984, Starkey Hearing Foundation is a public charity, which as of December 2016, has given away more than 1.5 million hearing aids to people in need in the U.S. and around the world.

1980s

The 80s saw tremendous growth and technological innovation for Starkey including the release of the hearing industry's first canal hearing aid, the CE-5 Series, in 1982.

Another major turning point in the history of Starkey Hearing Technologies, and the hearing aid industry in general, was September 7, 1983 when President Ronald Reagan was fit with Starkey's new INTRA hearing aids. Word of Reagan’s hearing aid fitting was leaked to the press two days later. Several photos of President Reagan wearing hearing aids led to a wider acceptance of the devices among the general public and increased sales of hearing aids throughout the industry.

Starkey's orders alone doubled a week after Reagan’s fitting, and then doubled again the following week. Following the inaugural 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 devices.

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 Fund into Starkey Hearing Foundation in 1984.

By the end of the 1980s, custom hearing aids would account for more than 75 percent of all domestic hearing aid sales.

1990s

Throughout the late 1980s and 1990s, the hearing aid industry saw a period of large-scale consolidation. Starkey expanded in its own right, obtaining and promoting its own hearing aid brands and growing its global presence. During this time, Starkey purchased Omni Hearing Systems and acquired the San Diego-based brand NuEar. By the end of the decade, Austin would join forces with several unhappy Beltone dealers. This joining would result in the creation of the Audibel brand come 2000. Microtech was also established as a primary brand under the Starkey umbrella. From a global perspective, Starkey aggressively expanded into Australian, European and Asian markets.

During the 1990s, the company also committed itself to focusing on the future of hearing technology and 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, leading to another product breakthrough in 1992, with the introduction of the Tympanette. The first hearing aid to fit entirely in the ear canal, the Tympanette, provided patients with both acoustic and cosmetic benefits and was the industry’s first completely-in-canal (CIC) hearing aid. The Tympanette was the smallest and most popular hearing aid in the industry, resulting in increased demand for product.

"We became a leader in training programs and certifying people to fit these new styles of products," Starkey Hearing Technologies Senior Vice President Brandon Sawalich said. Around this time, Starkey also began developing many of the tools that hearing professionals use every day including the video otoscope, advanced silicone impression materials and work benches.

By 1997, Starkey was a global manufacturer with a international customer base. "It was a period in which product development was becoming more general and geared towards the demands of a global economy," Sawalich said. "We began to adapt our research and products to make sure they were applicable." By the end of the decade, the company had more than 40 factories with sales in more than 100 global markets.

2000s

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. For Starkey, the 2000s heralded an age of digital revolution and corporate growth. In 2012, the company would officially change its name from Starkey Laboratories to Starkey Hearing Technologies.

Between 2001 and 2009, Starkey launched five new hearing aid products, expanded its customer base, opened the doors for research and innovation with a dedicated research facility in Berkely, California, and began to break ground on expanding the company's world headquarters.

• In 2001, the Genesis digital hearing aid family was launched. Genesis would become the industry’s most comprehensive product line, with Axent hearing aids becoming the benchmark for advanced digital hearing technology.

• In 2002, the Starkey Hearing Alliance network was established to reward hearing professional customers.

• In 2003, Genesis 4 is released, offering those with hearing loss superior levels of audibility, high fidelity and hearing comfort.

• In 2004, the Starkey Hearing Research Center opened in Berkeley, California, focusing on long-term hearing research issues as well as product development.[1][2] Today, 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.

• In 2006, Starkey revolutionized the hearing aid industry with the introduction of Destiny, the first hearing aid to utilize digital technology in a completely new way, and the first to virtually all feedback in hearing aids once and for all. During this time, the company also introduced Inspire, a computer software fitting system that allowed hearing professionals to program hearing aids.

• In 2008, Zōn® hearing aids followed, revolutionizing the way hearing aids look. Zōn would win more than a dozen design and consumer electronics awards due to its innovative design and style.

• In 2009, following the success of Zōn, the S Series® with Drive Architecture™ was released. Using multi-core, open architecture technology, S Series hearing aids would go on to be one of the best-selling lines of hearing aids in the industry.

Between 2010 and 2013, Starkey’s new products would focus on the way patients hear, handle tinnitus and the styling options of hearing aids. In 2010, the company launched Wi Series®, which enabled wearers to stream sound directly from their TV or radio to their hearing aids without any body-worn relay device. SoundLens™, was also released as the world’s first custom invisible-in-the-canal hearing aid. This time frame also saw the company develop hearing solutions for children, launch X Series, accessories including Surflink Mobile, tinnitus solutions and 3 Series.

Present

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.

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.

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.

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." 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. 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. September 2016, Federal prosecutors have charged five people, including 3 former executives with stealing more than 20 million dollars from Starkey Hearing Technologies.

In March 2016, the company introduced a brand new platform called Synergy. 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. In addition, Starkey also unveiled the hearing industry's first wireless IIC hearing aid, SoundLens Synergy.

Starkey Hearing Foundation

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.

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. 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.

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.

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.

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.

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.

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.

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.

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.