The growth of Marquardt Switches in Madison County

CAZENOVIA — My ’56, stick-shift Chevy had only a few switches and controls: the ignition, radio, cigar lighter, heater fan, windshield wipers, lights, and radio. In my current vehicle, the door handle senses my presence; a push-button activates and deactivates the engine; my dashboard controls resemble a NASA flight panel; switches adjust my sitting position, warm my derriere, direct my navigation system, change my gears, and operate the windows and sun roof; and my steering wheel abounds with controls to adjust the sound system and monitor the cruise control.

While switch and sensor assemblies are ubiquitous in today’s cars and trucks, most people don’t realize that many are designed and produced by Marquardt Switches, Inc. in the Madison County town of Nelson, just outside of Cazenovia. The company, which was incorporated in 1981, serves as the North American headquarters of Marquardt GmbH, the parent firm founded in 1925.

World headquarters are located in Rietheim–Weilheim, Germany. The company, which believes in manufacturing where the customers are located, has a total of 12 plants in nine countries on four different continents. Marquardt’s international operation manufactures primarily for the automotive, household, and power-tool industries. The parent company, which is owned by two unrelated families named Marquardt, employs nearly 7,000 people and posted revenue at 2013 year-end of $991 million.

“The Cazenovia operation designs, manufactures, assembles, and tests electromechanical switches and control systems, of which 98 percent are used in the automotive industry,” says Jochen Becker, the president of Marquardt Switches and the vice president of Marquardt Group in North America. (In addition to Cazenovia, plants in Rochester Hills, Mich. and Irapuato, Mexico report to Becker.) “It even designs and builds some of its own sophisticated assembly equipment to produce the components … [Cazenovia] … runs 24/7 with 470 employees in a 100,000-square-foot facility … producing more than 10 million switches and sensors annually for [automotive] customers, which include Mercedes, Fiat/Chrysler, Toyota, GM, and BMW, and for truck customers like Freightliner.” Marquardt Switches owns the building and the 18 acres on which the plant is sited.

“We’re a highly [vertically] integrated company,” notes Kirk Wardell, director of operations in Cazenovia, as he escorts this reporter on a tour of the plant. “In addition to multiple assembly lines, we do our own injection-molding, make our own circuit boards, and staff an in-house tool room and maintenance shop. Marquardt also extensively tests its products on-site to be sure the quality meets the customer’s specifications. Cazenovia is a lean-manufacturing facility that doesn’t stock a large inventory, so … [vertical integration] is important not only to guarantee the quality of our products but also to control the production time in order to respond to changing customer needs.” Becker adds: “We’re unique in what we do and how we do it. A lot of companies are turning to outsourcing as the time-to-market gets shorter. We, on the other hand, continue to expand our production capabilities.”

Marquardt competes with a number of other manufacturers for the switch, sensor, and control business. “There are a lot of competitors in this industry,” Becker points out. “For example, in Auburn, TRW [Automotive] has a manufacturing plant. (A publicly traded company with 2013 sales of $17.4 billion.) … There is Kostal, another family-owned business headquartered in Germany, Omron, and Defond (a company which produces 450 million switches per year.). One of the keys that separates us from the competition is Marquardt’s … [obsession] for quality. The company’s basic principle that has become part of the daily routine of our employees is that quality is when the customer returns, not the product.”

The other key to Marquardt’s competitive advantage is innovation. “This plant [Cazenovia] has 150 [degreed] engineers,” stresses Becker; “that’s about one-third of the staff. We insist on finding the right people who are not only smart but who also … [thrive] in an environment that is fast-paced, high-pressure, and oriented to customer service. The [Cazenovia] plant is represented by … [a host] of engineering disciplines: mechanical, electrical, process, manufacturing, software, hardware, and even chemical. To assemble this skill level, we have incorporated 33 different nationalities into a multi-cultural operation.”

“[Another] … indicator of the company’s commitment to innovation is its annual investment of 10 percent of revenues in R&D,” adds Wardell. “In Cazenovia alone, we have 35 to 40 engineers focused only on research and development. Then there is the continuing investment in training product assemblers through multiple apprentice programs and tuition reimbursement for continuing education. Marquardt is competitive for the long-term because we support and continuously raise our innovation standards.”

Becker and Wardell also note the importance of the leadership team at Marquardt Switches which, in addition to the president and director of operations, includes Kevin Thompson, logistics director; Wes Daggett, quality director; John Jelfo, finance and controlling director; Dean Moore, human-resources manager; and Bruce Santos, director of R&D and sales.

Marquardt’s employment has grown by more than 200 percent just in the last decade. “When I joined the company nine years ago,” says Wardell, “there were approximately 150 people. Now we have 470. To accommodate our [historic] growth, we have expanded the production facilities … The [Cazenovia] facility is currently operating at capacity. Any expansion here would affect all parts of our business (circuit boards, injection molding, assembly, inventory) so we are considering any changes carefully.”

Whether or not Marquardt expands the Cazenovia facility, the company has had a substantial economic impact on the area. “Our payroll is more than $20 million [annually],” emphasizes Becker. “We spend several million dollars more [each year] on materials and supplies, and our capital investment in machinery is huge. The company also pays substantial school and property taxes. In addition, we receive three to 10 visitors every week in Cazenovia, and they spend money here on hotels, food, and … [other amenities].”

During his 16 years employed at Marquardt, Becker has held several positions including engineering, managing engineering teams, and program management. He assumed his position at Marquardt Switches in 2007 to launch a recently won automotive contract. Since his arrival in Cazenovia, North American annual sales have grown from $40 million to $200 million. Becker holds an MBA in electromechanical engineering from the University of Applied Science in Furtwangen (Germany) and a bachelor’s degree in business management.

Prior to joining Marquardt, Wardell worked in New York, California, and North Carolina with new company startups, merged newly acquired businesses, and developed and implemented performance-based organizational structures. His 25 years of industry experience includes medical electronics, electronic-wiring devices, banking, power tools, and automotive. Wardell holds a bachelor’s degree in electronic-engineering technology from Arizona State University.

Contact Poltenson at npoltenson@cnybj.com