In today’s AMN Executive Interview, we feature Daniel Schildge, CEO of CRP Industries Inc. In the interview, Schildge brings us up to speed on the company’s acquisition of Atlantic Automotive Enterprises earlier this summer as well as the integration of FERTAN into CRP’s portfolio of brands.

It’s been just about a year since we last talked. What’s new? What are your plans for AAPEX this year?

It has been an exciting year at CRP, as we have worked exceptionally hard to continue to earn the respect and trust of the market, from the professional repair technician to our distribution partners. The acquisition of Atlantic Automotive Engineering (AAE) has definitely been a major highlight as we move into a manufacturing business model. We’ve renewed our commitment toward building meaningful relationships with professional repair technicians through our Tech Connect initiative, resulting in a clearer voice of customer perspective. And, all the while, we continue to look for and identify new product opportunities for the market such as our Fertan brand surface treatment products.

Industry Week is going to be exceptionally busy for the CRP team. We are exhibiting at the Big R show with the AAE and Fertan brands, at AAPEX with the CRP Automotive brands (ContiTech, Ajusa, Rein Automotive and Pentosin) as well as AAE, and at SEMA with our Fertan brand. A key AAPEX theme will be the expertise we are building in the product categories of cooling, under car and engine management.

The exciting outcome of this strategy is that all our brands come into play with this line of thinking. For example, the under car category consists of AAE power steering systems, Pentosin power steering fluid, ContiTech serpentine belts, and Rein Automotive motor mounts and suspension parts along with Rein power steering hose and brake hose.

Tell us about the company’s acquisition of Atlantic Automotive Enterprises earlier this summer.

We are very excited about the AAE acquisition. Atlantic Automotive Engineering was formerly known as Atlantic Automotive Enterprises. After we acquired the company we changed the name to better promote AAE’s technological and engineering capabilities. AAE brings CRP a new product segment, Power Steering, with favorable market conditions and significant growth potential.

With a focus on import applications, the AAE brand provides a wide offering of new and remanufactured steering racks, power steering pumps, gearboxes and related electronic steering components. And, they are an early entrant into the Electric Power Steering (EPS), a fast-growing product category.

It is important to understand that AAE is not just a brand addition to CRP; they are a business unit with excellent growth opportunities. AAE has a long history and reputation for being quality-oriented and service driven, a perfect alignment to CRP’s values. AAE will be focused on continuing to provide innovative products and services that exceed the expectations of our customers. AAE and CRP customers will mutually benefit by having access to cutting-edge, first-to-market products and services.

CRP also added the FERTAN brand to the product lineup this year. Tell us about this new brand.

Fertan is a German manufacturer of surface treatment products that CRP has partnered with to market and sell their brand within the NAFTA market. Fertan has been successfully selling their products in the European market for more than 30 years. They are heavily focused on the car restoration market where they are the market leader as well as a wide range of industrial applications.

We are very excited about the potential of a particular surface treatment, Fertan Rust Converter. This is a unique and highly differentiated product that works on a variety of metal surfaces. It’s a non-toxic, non-flammable liquid that stops rust corrosion in its tracks and then converts it to a black zinc phosphate coating. The new coating adheres to metal and then becomes an ideal surface for a fresh paint base. Fertan Rust Converter delivers significant cost savings to the market because it eliminates the need for deep scrubbing or sandblasting.

And we are not just trying to sell the Fertan product; we are using it ourselves in our remanufacturing operations. We have been regularly using the Fertan Rust Converter at our AAE business unit with excellent results in overall rust removal performance and cost savings.

 

Educating the technician has always been a critical mission for aftermarket suppliers. How do you keep your customers (the technicians) educated and informed and how do you keep your message fresh?

 

The relationship we have with the professional repair technician is at the center of our business strategy. A number of years ago we recognized that building a meaningful relationship with the repair technician was an important component for product ideation and a better understanding of what the market wants from us. The CRP ContiTech Pro Series timing belt kit program, which includes a timing belt kit with water pump and hydraulic damper, was based on the feedback from numerous repair technicians.

 

Today, we understand the fact that repair technicians and shop owners have a lot on their plate. And everyone on the supply side wants a piece of them. We work hard to demonstrate that we care and respect who they are and what they do. When we visit with them, we are not there to sell CRP Automotive products; we are there to learn about them and their needs. We are building our repair technician relationships one person at a time. Although slow and costly, it is more meaningful.

 

Our Tech Connect initiative is the foundation of our outreach efforts to building one-to-one relationships with professional repair technicians. We launched an advisory council over a year ago to provide market insights and product innovation feedback. This is working well for us. Our “Inside the

Brands” video series was conceived after numerous conversations with repair technicians on what they would like to see from a supplier in the form of content. These videos are designed to help keep professional repair technicians informed and up-to-date with the latest tips, techniques, and product developments. The feedback on the videos has been very positive.

 

Lastly, we understand you have taken on a new role as well, having been appointed to the Auto International Association Executive Leadership Council. Congrats! What will you be doing in this role?

 

Thanks Amy. I am very excited to be on the Auto International Association (AIA) Executive Leadership Council. The AIA is focused on serving the needs of companies engaged in the import nameplate aftermarket. This is something dear to my heart and something that is core to our passion and purpose at CRP. From our early beginnings more than 60 years ago, we have always been passionate about import vehicles performing at their best. As a company, we have been quite involved with AIA over the years, as a sponsor, as an entrant in their awards programs, and as a participant and panelist in training sessions. When the opportunity arose for me to join the Executive Leadership Council, I was honored to be in a position to help build the AIA on the foundation laid by so many before me.