New company excites former GE manager

ERIE, Pa.—It was two years ago that Jon Meighan, then an executive and plant manager with General Electric, began having serious thoughts about owning and managing his own business.

Little did he know that by August 2017 he would own one that operates in an industry he had no direct experience with.

Regardless, Meighan is now the owner and president of Lake Erie Rubber & Manufacturing, an Erie-based custom rubber molding and manufacturing company that is more than 20 years old. It's an aspirational move for the Erie-area resident, who combined two former companies—Skully Enterprises and Lake Erie Rubber Works—into one. His enterprise places an emphasis on using lean principles to drive continued improvement in safety, quality, delivery and cost for its customers.

That strategic move does make the transition an ideal fit, Meighan says, even though he had no previous experience in the rubber manufacturing industry.

"At General Electric I had worked in the supply chain area with a focus on welding. To be honest with you, though, the rubber business was a new one for me," Meighan said. "But I was looking for a business to acquire in (the Erie area) because the cost of doing business is low and there is a long (history) of successful manufacturing and (employee) know-how here."

Meighan, a former GE Transportation plant manager, officially took over the business on Aug. 1, 2017, less than a week after the birth of his second child. The decision came as a surprise to friends and colleagues. After all, Meighan invested his life savings at a time when many manufacturing firms in Pennsylvania have struggled.

So he researched a number of family-owned businesses in the Erie area that were either for sale or did not have a specific succession plan. A handful were considered as options. The more he looked the more he considered the Skully/Lake Erie Rubber Works combination largely because of the inherent knowledge that the company's 10 employees brought and the strong brand they had built in the industry.

Lake Erie Rubber Works traditionally had been focused in the rail and mining industries, and already had been selling to GE's Transportation business. The company also currently serves the oil and gas and construction industries. With 24,000 square feet of manufacturing space, Meighan realized that the potential and capabilities for further growth were extensive. His own experience in business development, sourcing, international sales and other disciplines gave him a number of ideas for how that growth could be achieved.

"I do believe that the marina, agricultural and safety industries look like great opportunities for us," Meighan said. "The business was completely run by professionals who have a level of expertise that I will never have, but combined with my background it was the right fit. I also wanted to own the building myself and the one here is in great condition, so there's no (immediate) investments needed in the facility."

Acquisition discussions began in February 2017 and the final deal was in place by the late summer. Meighan believes that Lake Erie Rubber & Manufacturing can double both its revenue and employees within the first five years—and again five years later. He is confident of success in part because of the trend of more companies understanding the intrinsic costs of setting up operations overseas, particularly in China where costs have risen in recent years.

In addition to growing the business and increasing profitability, Meighan decided to share the success with his employees. As a result, he's instituted profit-sharing so his manufacturing and back office team members will benefit if Meighan's strategic plan succeeds.

All employees from the former companies remained with Meighan after the acquisition.

The ability to meet revenue goals will hinge on Lake Erie Rubber's capability to diversify its offerings for other industries. Meighan has developed a plan to help the company get there, and he will handle the business development efforts to start, with the hope that as the company grows he will hire an executive to run sales.

"It will be helpful for me to really take on the business development end because it will allow me to do a more effective job at managing the new processes we need to implement," he said. "As we grow, we can hire more experts who can (specialize) in certain skills."

Meighan believes that with efficient practices, strong customer service and the low overhead in the Erie region, his company can compete with other manufacturers around the globe.

"Owning a business is something I have always wanted to do since I was younger," said Meighan, who grew up in Texas and Wisconsin and attended college at Clarkson University in upstate New York. "Maybe a few people thought I was crazy. But I have a plan and more control of my own career and my future."