Power Engineering & Manufacturing

What Power Engineering & Manufacturing does

Power Engineering & Manufacturing, Ltd. (PEM) is a U.S.-based custom heavy-duty industrial gearbox designer and manufacturer founded in 1975 and headquartered in Waterloo, Iowa. The company operates a single integrated facility combining CNC gear hobbing, gear grinding, coordinate measuring machine (CMM) inspection, welding, and assembly, and holds ISO 9001:2015 quality certification plus Bureau Veritas certification for LNG industry applications. Its product portfolio comprises six core gearbox families — Split Power, Double Output, Parallel Shaft, Planetary, Pump Drive, and Angle Drive Speed Reducers — differentiated by proprietary trademarked tooth geometries MEGAGEARS® (symmetric flank) and UNIMEGAGEARS® (asymmetric flank) that deliver 35-45% greater horsepower capacity and 3-10x longer fatigue life versus conventional gearing, with torque ratings exceeding 1,000,000 ft-lbs on planetary units.

PEM generates revenue through direct enterprise field sales of custom-engineered gearboxes to defense (U.S. Navy carriers CVN-79 and LHA-8, DARPA NOMARS autonomous vessel), infrastructure (Gateway Arch tram, U.S. Army Corps of Engineers dams, St. Lawrence Seaway), steel processing (Bradbury Group), oil & gas (Nikkiso ACD LNG skids, electric fracturing OEMs), dredging, and heavy moveable structures customers, supplemented by rebuild/recondition services, reverse engineering via CMM, engineering consultation, inspection services, expedited production, and storage/stocking exchange agreements. Pricing is fully quote-based with no public tiers, reflecting the bespoke engineering content of each unit.

The company is privately held by the Warren family (full ownership since 2007 following founder Saul Herscovici's passing), led since June 2019 by President and CEO Dennis Schilling — who joined as a machinist in 2005 and rose through quality and operations roles — with a small leadership team (CFO Mike Allison, Sales Manager Zak Siela, Operations Manager Cody Rector, Quality Manager Chris Hughes). Headcount sits in the 11-50 range, the customer base exceeds 2,000 across 48+ countries, and the company celebrated its 50th anniversary in 2025.

Name

Power Engineering & Manufacturing

Legal name

Power Engineering and Manufacturing, LTD

Website

https://pemltd.com

Company type

Private

Founded year

1975

Operating status

Operating

Headcount range

11–50 employees

Short description

Power Engineering & Manufacturing is a privately held, ISO 9001:2015-certified U.S. custom heavy-duty industrial gearbox manufacturer founded in 1975 in Waterloo, Iowa. It serves over 2,000 customers across defense, infrastructure, steel, oil & gas, dredging, and heavy moveable structures via proprietary MEGAGEARS® and UNIMEGAGEARS® tooth technology.

Ownership category

akta.pro rank

Product category

Industrial Gearboxes

NAICS

Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing (333612), Other General Purpose Machinery Manufacturing (3339)

SIC

General Industrial Machinery & Equipment (3560), Special Industry Machinery, Nec (3559)

akta.pro primary industry

Gearmotors, Gearboxes & Speed Reducers (IMAGACAF)

Keywords

• Custom gearbox manufacturing
• Heavy-duty industrial gearboxes
• Speed reducers
• Gear engineering services
• Reverse engineering gearboxes

Headquarters

HQ city

Waterloo

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Personnel, Operations, Supply Chain, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. Custom Gearbox Manufacturing: Design and manufacture of custom heavy-duty industrial gearboxes for specific customer applications. One-time product sales with custom engineering collaboration from concept through installation.
2. Rebuild & Recondition Services: Repair and rebuild services for any make/model gearbox with reverse engineering capabilities. Utilizes proprietary MEGAGEAR® technology to upgrade existing gearboxes with up to 35% performance improvement.
3. Consultation Services: Engineering consultation services for gearbox applications, failure analysis, and design optimization.
4. Storage & Stocking Agreements: Exchange programs for gearboxes or parts in critical applications with backup units stored in climate-controlled warehouse for 24/7 deployment.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

Power Engineering & Manufacturing (PEM) designs and manufactures custom heavy-duty industrial gearboxes across six core product lines — split power, double output, parallel shaft, planetary, pump drive, and angle drive speed reducers — supported by proprietary MEGAGEARS® and UNIMEGAGEARS® gear tooth technologies that deliver up to 35-45% more horsepower and 3-10x longer fatigue life than conventional gears. The company complements its manufactured products with full-lifecycle services including custom design, reverse engineering, rebuild/recondition, inspection, expedited service, and storage agreements. All products are engineered to exceed AGMA standards and are tailored to specific customer applications across defense, steel, oil & gas, dredging, mining, and infrastructure sectors.

Product overview

Power Engineering & Manufacturing (PEM) is a custom heavy-duty gearbox manufacturer offering a portfolio of six core gearbox product lines—Split Power Speed Reducers, Double Output Speed Reducers, Parallel Shaft Reducers, Planetary Speed Reducers, Pump Drive Speed Reducers, and Angle Drive Speed Reducers—supplemented by two proprietary gear technologies (MEGAGEARS® and UNIMEGAGEARS®) that enable up to 35-45% more horsepower than conventional designs. The product portfolio is complemented by five service offerings covering the full lifecycle: design and manufacturing, reverse engineering, rebuild and reconditioning, inspection and quality assurance, and expedited service with storage agreements. All products can incorporate MEGAGEAR® or UNIMEGAGEAR® technology and are designed to exceed AGMA standards. The company serves over 2,000 customers across diverse industries including defense, steel, mining, oil & gas, and infrastructure.

Differentiator

Problem solved

Functional benefit

Products and services

• Split Power Speed Reducers Custom-designed split power gearboxes capable of dividing horsepower into numerous configurations between multiple output shafts. Produced with up to 17 outputs, 1,000 Hp, and 125,000 ft.-lbs. of torque. Sold to industrial OEMs requiring customized power distribution across multiple outputs.
• Double Output Speed Reducers Custom-designed gearboxes offering multiple output options with torque ratings up to 200,000 ft.-lbs. and 500 Hp. Sold to industrial customers requiring twin-output gearbox configurations.
• Parallel Shaft Reducers Offset parallel shaft gearboxes featuring a patented flywheel design for high shock load applications requiring AGMA service factor of Class 3 or above. Power ratings up to 11,000 Hp. Sold to industrial customers with high-shock-load applications.
• Planetary Speed Reducers High-torque inline drive planetary gearboxes custom-designed for applications requiring small footprint. Torque ratings exceed 1,000,000 ft.-lbs. Sold to defense, mining, and heavy industrial customers requiring compact high-torque solutions.
• Pump Drive Speed Reducers Custom-designed pump drives that drive up to 10 pumps from a single input or multiple prime movers (electric motors, hydraulic motors, gas/diesel engines). Rated up to 11,000 Hp and 250,000 ft.-lbs. of torque. Sold to oil & gas, dredging, and pumping equipment OEMs including EDDY Pump and Nikkiso ACD.
• Angle Drive Speed Reducers 90-degree power transmission gearboxes featuring spiral bevel gear sets designed for high torque applications. Rated up to 2,500 Hp and 290,000 ft.-lbs. of torque. Sold to industrial customers requiring right-angle power transmission.
• MEGAGEARS® Gear Technology Trademarked gear tooth technology with symmetric flanks featuring unique involute geometry. Provides up to 35% more horsepower than conventional gears, with three to ten times longer surface and bending fatigue life. Available as option on all PEM gearboxes or for retrofit into existing gearboxes from other manufacturers. Sold as a proprietary performance upgrade.
• UNIMEGAGEARS® Gear Technology Trademarked asymmetric gear technology capable of carrying up to 45% more horsepower than conventional gears. Features non-symmetric flanks with optimized involute geometry for greater power density and extended fatigue life. Designed for applications with predominantly unidirectional load. Sold as a proprietary performance upgrade.
• Complete Design, Manufacturing & Reverse Engineering Services Full-service capabilities including custom design, new manufacturing, and reverse engineering of damaged, broken, or obsolete gearbox components using state-of-the-art equipment and CMM operators. Sold to industrial customers, government agencies, and defense customers needing custom-engineered or reproduced gearbox components.
• Rebuild & Recondition Services Gearbox repair and rebuild services for all makes and models including Falk, Demag, Flender, Dodge, and others. Includes damage analysis, mode-of-failure reporting, no-load testing, and option to convert to MEGAGEAR® technology for up to 35% increased Hp/torque. Sold to industrial customers maintaining legacy equipment.
• Product Inspections Quality assurance inspection services including visual inspection, non-destructive testing (Mag Particle MT Level II, Visual VT Level II), CMM inspection, batch inspections, first article inspections, receiving inspections, and reverse engineering using PC-DMIS CMM programming. Sold to defense, government, and industrial customers requiring certified inspection documentation.
• Expedited Service Fast-track production service designed to minimize downtime. Projects are prioritized through production cycle while maintaining quality checkpoints for both gearboxes and parts orders. Sold to customers with urgent operational or mission-critical timelines.
• Storage & Stocking Agreements Exchange programs for critical applications with backup gearboxes or parts stored in climate-controlled warehouse, maintained monthly with documented procedures. Available for both full gearboxes and component parts. Sold to customers with critical 24/7 deployment needs.

Quantifiable outcome

• 35% more horsepower with MEGAGEARS® technology
• +3 more outcomes

Named customers10 records

Segments7 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Nine partnerships are on record, tiered core and minor.

• Serco Inc. (for DARPA)coreStrategic or Co-development Partner · 1 April 2023PEM partnered with Serco Inc. and DARPA on the revolutionary USX-1 Defiant uncrewed surface vessel (NOMARS program). PEM designs and manufactures prototype planetary gearboxes for the vessel's propulsion system. The 180-foot autonomous vessel is designed for extended operations without human crew.
• Cedar Valley Manufacturers Association (CVMA)coreStrategic or Co-development PartnerRegional manufacturing association operating under Grow Cedar Valley. Dennis Schilling serves as Advisory Council Member. Promotes manufacturing visibility, attracts new member companies, and strengthens workforce awareness in the Cedar Valley region.
• Grow Cedar ValleycoreGTM or Marketing PartnerEconomic and workforce development organization providing network access to local businesses, community leaders, and resources. Facilitates connections and provides platform for PEM to contribute to regional economic and social well-being.
• Hawkeye Community CollegecoreStrategic or Co-development PartnerWorkforce training partnerships providing employee training opportunities, supporting grant initiatives for advanced manufacturing programs, and offering internships and apprenticeships to strengthen local talent pipeline.
• Waterloo Community SchoolscoreStrategic or Co-development PartnerEducational partnerships bridging gap between education and industry through career fairs, classroom presentations, work-based learning opportunities, and STEM events promoting manufacturing career paths.
• Waterloo Career CentercoreStrategic or Co-development PartnerAdvanced Manufacturing program sponsorship offering students apprenticeship opportunities with hands-on overview of manufacturing processes and career choices using cutting-edge technology including CNC machinery and welding.
• Cedar Falls School DistrictminorStrategic or Co-development PartnerEducational partnerships supporting manufacturing career awareness and workforce development in the Cedar Falls school district area.
• EDDY PumpcoreTechnology or IntegrationPartnership to build custom gearboxes for slurry and dredge pump engineering and manufacturing. PEM provides custom designed speed reducer gearboxes for new pump product line development.
• Nikkiso ACDcoreTechnology or IntegrationPEM supplies SR-27-3/4 speed reducer gearboxes for LNG pump skids designed and manufactured by Nikkiso ACD. Gearboxes provide maximum power and reliability with third-party certification testing.

Scale indicators6 records

Recent moves10 records

Expansion highlights5 records

Broad incumbents

• Nord Drivesystems: Manufacturers of gearboxes, electric motors, and drive electronics for intralogistics, bulk handling, and heavy industrial applications — comparable custom industrial gearbox portfolio and end-market overlap with PEM.
• Sumitomo Heavy Industries (Sumitomo Drive Technologies): Manufactures a broad range of industrial gearboxes, gearmotors, and precision drives for steel, mining, pulp & paper, and energy applications — directly comparable in heavy-duty industrial gearbox engineering and end-market exposure.
• Bonfiglioli: Italian designer and manufacturer of gearmotors, drive systems, and gearboxes for industrial automation, mobile machinery, wind energy, and heavy industry — competes with PEM in custom and standard industrial gearbox categories.
• SEW-Eurodrive: Global leader in drive technology, producing gearmotors, industrial gearboxes, and electronic drive systems for factory automation, logistics, and heavy industry — directly comparable custom gearbox capability but at much greater scale and with global service reach.
• Flender (Siemens): Part of Siemens, Flender is a large global manufacturer of mechanical drive systems (gearboxes, gear couplings) for wind, cement, mining, oil & gas, and marine — competes head-to-head with PEM in heavy-duty industrial and naval applications but as a much broader, catalog-driven incumbent.
• Regal Rexnord (Rexnord Gear Group): Owns legacy industrial gearbox brands (Falk, Rexnord, Link-Belt) and competes with PEM in heavy-duty parallel shaft, helical, and planetary gearboxes for mining, cement, steel, and power generation — a broader incumbent with similar brand heritage in industrial gearing.

Direct peers

• Cone Drive (Timken / precision gear specialist): Specializes in precision double-enveloping worm gearing and high-ratio planetary gearboxes for defense, aerospace, and heavy industrial applications — comparable custom engineering depth and similar mission-critical customer base to PEM.
• Philadelphia Gear: A U.S.-based manufacturer of custom high-speed gearboxes and gear drive maintenance services for defense, marine, steel, mining, and power generation applications — directly comparable to PEM's custom heavy-duty industrial gearbox portfolio and rebuild/reverse-engineering service model.
• David Brown (Santasalo): Specializes in custom-engineered industrial gear systems for heavy-duty applications including mining, marine, defense, and steel — a direct competitor to PEM's custom split-power, parallel shaft, and planetary gearbox product lines.
• Lohmann & Stolterfoht (Renk Group): German specialty gearbox manufacturer focused on naval, defense, and heavy industrial applications — directly comparable to PEM's naval and defense gearbox work including equipment for naval vessels and tracked vehicles.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/Power-Engineering-Manufacturing-LTD-PEM-155552471141066
• Xx.com/pem_ltd
• LinkedInlinkedin.com/company/power-engineering-and-manufacturing-ltd

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Power Engineering & Manufacturing