Mickey Leech CEO Schumacher Electric Corporation
In an interview with Invest:, Mickey Leech, CEO of Schumacher Electric Corporation, said the company’s impact on a global and regional scale is defined by its role as a power conversion entity, providing battery chargers and maintenance products for various vehicles. Leech discussed the challenges faced by the manufacturing industry, particularly in the post-COVID era, and the evolving role of Schumacher in the electric vehicle landscape.
What would you say is the overall impact of the company on the region and even globally?
We empower mobility as a power conversion company and we have always transformed our products to meet the growing needs of our customers as they try to enjoy mobility. We do that through battery chargers for all types of vehicles, including electrical and internal combustion engine vehicles. We have battery maintenance products for all types of vehicles as well as instant starting products for emergency situations. We empower any type of person to appreciate their mobility both on and off road.
What is the state of the manufacturing industry and what opportunities are there?
There have been a lot of changes since COVID. We’ve spent a lot of time achieving supply chain resilience, which has forced us to have a wider supply base and more diversity in who we supply our products to. It also requires us to have more technical capabilities focused on automating our processes. The cost of labor everywhere we produce products is also going up quickly, so we need to offset that by using technology in our assembly processes and materials.
How do you see the company’s role evolving in the world of electric vehicles?
Our role has always been about safety and high performance for consumers and mechanics. Our additional emphasis moving forward is about providing productivity improvements for professionals as they are challenged with labor and a skill gap with there not being enough mechanics for the need. We want our end-users to depend on Schumacher battery chargers and instant power tools to get their work done safely, reliably and with more productivity.
What are some strategic priorities for the company?
The biggest one is around the global supply chain. We need to remain competitive so we can continue investing in innovation and marketing. Our biggest initiative is restructuring our global supply chain. From there, we are entering new markets, particularly electric vehicle charging for single-family homes. We are also focused on e-commerce globally.
What is the role of innovation and new technology at Schumacher Electric?
The trick for us is to not over-invest in a particular technology. It is easy to fall in love with technology and forget what we are trying to do with it. We are focusing on solving business problems and creating continuous improvement opportunities. For instance, we don’t have an AI strategy but we have a strategy to improve our demand forecasting process that leverages AI.
What are some trends impacting the business?
The cost of labor is accelerating quickly. It is faster in China and Mexico than here but it is still creating a challenge for everyone as we are trying to find supply chain resilience. With everyone moving around the globe and producing in different locations, it is creating a premium for labor.
What are some of the ways social responsibility has impacted the manufacturing industry?
Social responsibility has been part of this industry for a longer time than it has been part of the ESG (environmental, social and governance) terminology and trend. Manufacturing has gone through a lot of improvements over time and the thinking that goes into Lean Manufacturing is about eliminating waste and empowering people to make decisions. Those disciplines are consistent with eliminating waste that is harmful to communities. We want to find ways to make jobs safer and make sure we are making better decisions and having diversity of thought.
What partnerships have you developed and how do you anticipate them advancing the industry?
We have three cornerstones that have made us successful for the last 76 years. The first is low-cost solutions, second is rapidly deploying innovation, and the third is about strategic partnerships. The partnerships we look for in the industry are around safety and compliance. We want to make sure we are all using chemicals that are not harmful and designing products that are energy efficient. We want to make smart electric vehicle-charging products that make people comfortable and eliminate range anxiety. We are all working toward improving the community in the sense of how our products help them and we are doing that through strategic associations in the industry.
What are some of the legislative or regulatory issues you are keeping an eye on?
The one particular topic is TSCA, or the Toxic Substance Control Act. It is a pretty overarching conversation about what isn’t and is allowed to be in our products. We are concerned it will become punitive to consumers because it could raise the cost of certain products or take them off the shelves completely.
What are some of the investments made in training or job programs to increase your workforce?
We moved here from Chicago three years ago. Part of the process of getting ramped up was hiring, and we hired probably over 100 people here. We have tapped into the community and have been able to create jobs and find people who are in need of jobs. We have just begun working with some local communities in our engineering area to provide co-op jobs and internships. We also use an agency to staff our distribution center and that agency has a job skills program.
