Hugh Charvat is chairman, president and CEO of Schrader International, a role he has served in since early 2010. Schrader is the global manufacturing leader in valve and sensing technologies. Prior to joining Schrader, Charvat worked for Fleet Pride Inc. in a variety of senior management roles. He has more than 24 years of experience in the automotive and heavy-duty industries, including extensive aftermarket experience. Challenged with unifying a global brand and a rapidly shifting market, Charvat was named president of Schrader at a key inflection point for the company. In the interview below, he discusses the challenges and opportunities that Schrader faces in today’s market, and how the company is evolving its innovative array of valve and sensing technologies.

You’ve spent the majority of your career in the automotive industry. What drew you to Schrader?

Hugh Charvat (HC): I grew up around cars – working on cars, racing cars – and my interests and aptitudes led me into the aftermarket segment. I knew the Schrader brand long before I was working on a parts counter selling Schrader product to installers, and I have always viewed the company as a strong, recognizable brand in the marketplace. The chance to join Schrader and lead the global organization forward was a great opportunity – one that I simply couldn’t pass up.

Schrader is a global company. What have been the keys to building a cohesive, unified organization?

HC: One of our core values is collaboration. Our customers are our partners. They bring challenges, opportunities and new perspectives that define and inspire our products and people.

Internally, by creating and supporting virtual, cross-functional design teams that span the valve and sensor sides of the business, we have created opportunities to combine both technologies for customers. This creates new perspectives and designs that neither side of the business could foster on their own.

You’ve had leadership roles in other companies. How is leading Schrader different?

HC: People are the foundation of a successful company and at Schrader it’s our people who provide the competitive advantage. What makes the people at Schrader unique is the way that they perceive the brand, the company and the markets we serve. This perception translates quite easily into what I refer to as a “swagger” – confidence and a strong belief in Schrader as a whole. Since joining the team, my job has been to create opportunities for our associates to be successful. As we continue to gather those “wins,” the swagger and the confidence to keep reaching and challenging for continued improvement grows. This process continues today and makes being a part of Schrader a very positive and challenging experience.

What are some of the external challenges that Schrader faces?

HC: I read a recent article that talked about the growing technological attributes of an automobile. The author jokingly referred to the cabin of the car he was driving as the “entertainment center.” I agree that the technology in the cabin today is impressive and, sometimes, a bit daunting. But the systems in the car that provide information to the driver via the dashboard or interface are equally as impressive, and daunting, from a technician’s perspective. One of our challenges as a manufacturer whose products are a part of these key systems is to educate all communities that interact with them. Our continued response to this ongoing challenge is to raise the combined awareness for consumers, OEMs and repair technicians surrounding the Tire Pressure Monitoring System (TPMS), its components, and its safety, fuel efficiency and environmental benefits. For example, the National Highway Traffic Safety Administration (NHTSA) released a 2012 report highlighting that the presence of TPMS resulted in a 55.6 percent reduction in the likelihood that the vehicle would have one or more severely underinflated tires. In addition, we function as an industry advocate for TPMS system awareness and technical support. This takes shape with the technical training that we do each and every day across the U.S. and Canada, including our current EZ-choice roadshow direct to installers and service professionals. Consumer education, technician understanding and confidence are key priorities and an ongoing focus for our company in order to be successful.

Schrader has been around for quite a while. What have been the challenges and opportunities in leading a company with a long history and strong brand recognition?

HC: Sometimes it is more difficult to extend the lead of a company with an existing leadership position than it is to grow a lesser-known company. Specifically, it’s important to make sure you’re not mistaking your leadership position as an opportunity to become complacent or less than aggressive in the marketplace. At Schrader, we enjoy a strong market share in both the original equipment and aftermarket segments. Our challenge is to take our innovative, engineering strength in sensing, valve and air/fluid control products, and extend it further in the automotive space and also into other adjacent market segments and applications – without losing our focus and commitment to our core business.

What tenets have kept Schrader successful throughout its 160-plus year history?

HC: Three key elements drive Schrader’s success: our people, our commitment to working very closely with our customers and our dedication to manufacturing excellence. Our associates focus on engineering and design capabilities that create customer-driven solutions. This focus has led the company to develop applications that evolve with the needs of the market, including significant advancements in automotive safety systems, industrial valving and sensing technologies beyond the tire.

Our success moving forward is dependent upon our ability to adapt to changing market conditions and flex our engineering resources and manufacturing capabilities to meet these evolving trends. One of our core values is collaboration. Our customers are our partners. They bring challenges, opportunities and new perspectives that define and inspire our products and people.

What do you think Schrader is most widely known for and what would you like it to be known for going forward?

HC: In the past, Schrader was most recognized for the Schrader pneumatic tire valve, a valve that is used on every motor vehicle in the world today. Now, Schrader is widely known for diverse valve and sensing technologies, especially our tire pressure monitoring system portfolio (including sensors, valves, service packs, and repair tools).

What many don’t see are the valve and sensing technologies that are utilized in a broad set of applications that many customers and end-users use each and every day. A few examples include: fuel level sensors (with no moving pieces) that accurately measure vehicle fuel versus traditional apparatuses that are less reliable; medical room devices for measuring oxygen and liquids that involve sensor and valve combinations; and highly-engineered and intricate valve designs in storage tanks, air conditioning units and other air/fluid control devices. The list is extensive, but at the end of the day, Schrader’s valve and sensor products are embedded in diverse applications that are widely used.

TPMS has been a game-changer in terms of safety, environmental impact and fuel savings. What is Schrader doing on this evolving front?

HC: Schrader has been developing sensing technology for measuring tire pressure and temperature in automotive tires since the early 1990s. Since then, we’ve been a champion for the technology globally, both in the development of the original TREAD Act legislation and the ongoing education of consumers, vehicle manufacturers and the aftermarket repair communities. In 2010, we began a global awareness campaign aimed at those three communities with a goal of increasing awareness about the importance of proper tire pressure and how TPMS is as critical of a safety system as your seat belt or airbag. Since then, we’ve continued to drive awareness about the importance of TPMS, and will continue to do so as the demand for TPMS technology grows globally with more countries beyond the U.S., and the European Union enacting similar legislation.

TPMS technology has evolved over the past 20 years. For example, OEMs are looking for tighter specifications on high-speed valves and unique mechanical sensor fitment packages. We’re working with our OEM partners to develop technologies that meet these needs and also to expand remote sensing of tire pressure into new applications such as heavy-duty, fleet and off-road/earth-mover vehicle types.

Moving forward, Schrader will continue to lead the market globally and increase TPMS market share by developing the highest quality valve and sensor combinations for our OEM partners, and by directly assisting the aftermarket service and repair communities in handling the large influx of TPMS-equipped vehicles.

While automotive is a key business segment for Schrader, what are your views on the automotive market going forward, relative to what else Schrader is doing?

HC: Automotive has been Schrader’s sweet spot for more than a century, and has given us a tremendous foundation that we will not lose sight of. However, our technology leadership has created opportunities for Schrader beyond automotive into adjacent and new industries.

What are Schrader’s growth plans? Is it geographical expansion? Acquisition?

HC: All of the above and a few more. If an opportunity arises to expand our capabilities quickly via an acquisition, we will evaluate our options very closely. Any acquisition that we consider will complement our overall growth strategy. Additionally, our relationships with customers are bringing us into new vertical and geographical markets with existing and new products – for example, Schrader has developed new products in such key product categories as TPMS with our patented and programmable EZ-sensor product, as well as sensor packages beyond traditional automotive applications.

Are there any untapped markets or areas that Schrader is interested in exploring?

HC: Absolutely. Most recently, we have been asked to develop unique sensor application for aeronautics, heavy-duty and fleet applications. These sensors are a derivative of our existing core technology. These sorts of opportunities are exciting for Schrader as they allow us to stretch our innovative skill sets as well as challenge existing thinking. I liken this process to fishing; the more lines you have in the water, the greater chances you have in catching a fish. In this case, the more collaborative work we do in different markets, the greater likelihood we will develop an opportunity within a new market.

Schrader seems to be working through difficult global economic conditions. From your perspective, what is the difference between merely surviving tough economic times and thriving through them?

HC: My belief is that you structure your business so that you thrive in good and tough times. While that may sound simplistic – and to a degree it is – the key is to not overcomplicate your business model.

The must-haves are as follows:
• A clear, concise strategy
• A lean, efficient and flexible structure
• Process control (i.e. manufacturing excellence)
• An accountability system (track and hold folks accountable for achieving the results)

If you are not achieving your results, you need to go back and evaluate your strategy, structure and processes. Companies that keep that lean, efficient and aggressive mindset in good times will be the survivors and the market leaders in the tough times as well.

Is there anything else you would like AMN readers to know about Schrader going forward?

HC: We will continue to be a market leader, innovator and industry advocate for the products and systems we provide. In simple terms, this means we will be a strong partner for our customers, a tough competitor and provide an excellent work environment that brings the best out in our people. Schrader is the leading global manufacturer of sensing and valve solutions for automotive and industrial leaders, delivering solutions that protect and perform.

For more information on Schrader, visit www.SchraderInternational.com.