Engineering change

Like many of the powertrain solutions it provides, Regal Rexnord is a company that’s constantly in motion. Thanks to major acquisitions throughout the company’s history, the firm’s portfolio has broadened and its global footprint expanded.

Today, its main business segments include automation and motion control, industrial powertrain solutions and power efficiency solutions – an extensive portfolio that, according to Regal Rexnord China Pacific President Roger Fei, keeps his work dynamic and challenging.

“During my nine years with the business I’ve had four different jobs and almost every two or three years there’s a change. The role is constantly evolving meaning there’s no shortage of excitement, which keeps me going,” Fei tells The CEO Magazine.

Championing China

While the vast majority of Regal Rexnord’s revenue comes from North America, Fei has played a critical role in stimulating the China market.

“For a long time, our business was focused on low-cost production in China and exports along with positioning ourselves as a premium brand,” he says.

“However, around five years ago, we started to experience pressure when uncertain import tariffs on Chinese-made products by the United States hit hard. As a result, it became clear we needed to grow locally, improve our margins and strengthen our talent.”

With the shift toward the domestic market well underway, the changes are already reaping rewards. There has been a boost in profit margins in China over the past three years and a reduction in exports, in favor of customer growth across the region.

Part of this success is the result of strengthening the company’s domestic teams.

“Previously, many of our functions were being driven by teams based in other countries,” Fei explains. “We had some capabilities here, but not much. To address this, we have been constantly lobbying for additional resources to provide a greater focus on customers in China.”

Fortunately, this plan is being supported by Fei’s CEO, Louis Pinkham, who fully appreciates the importance of attracting and nurturing talent.

“If you ask my CEO what’s keeping him up at night, he will say talent. We’ve made a lot of progress over the last four years and he’s still asking me whether we’re moving fast enough. I feel comfortable with the team we have now, so it’s our mission to come together, collaborate and realize the growth potential we have in the region.”

---

“ZMS is one of the world’s most renowned Chinese shaft manufacturers. We have enjoyed a long-term cooperation with Rexnord globally since 2006, thanks to our excellent service and marvelous supply chain management.” – Chen Cai Zhi, General Manager, Ningbo Zhenming Shaft
“Regal Rexnord is Liyang Liyuan’s long-term strategic partner. We appreciate Regal Rexnord’s focus on partnership, open communication and collaboration, combined with fairness, support and dedication to quality. We recognize Regal Rexnord as a trusted partner and look forward to our continued and stable cooperation.” – Zheng Bo, General Manager, Liyang Liyuan

---

Advertisement

Targeting the domestic market has also relied on Regal Rexnord China’s strategic suppliers.

“It’s important to make sure that our local suppliers continue to support us for local growth,” Fei says. “We are currently working with them to reduce the total number of suppliers in an effort to simplify and consolidate our purchases. This will not necessarily lower the costs of our purchases, but it will lead to better quality, better delivery and lower overall cost of ownership.”

These changes are being supported by the company’s newly hired global sourcing leader, who is driving synergies across Regal Rexnord’s many brands and portfolios.

“This sourcing simplification is a big initiative for us and is part of the equation for improving our margins,” Fei says. “We’ll continue to work with our suppliers to move toward the next phase, which is not just talking about price, but talking about collaboration and how they can help us grow more.”

Leadership lessons

As the President of an organization consisting of 4,000 associates across 15 locations and 15 different business units, Fei has strong views about how best to manage such a large organization.

“My advice to all leaders is to really get close to reality and don’t be afraid to take action when you feel it’s necessary,” he says. “You need to actively go out and seek out the reality instead of just waiting for a report to show up on your desk. Many people don’t like sharing bad news with the big boss, so they try to massage it in some way, like hiding it in the details of a large report.

“You need to be transparent on what the real situation is because if we don’t know the problem, we can’t solve it. To achieve this, we need to encourage our teams to feel comfortable to raise issues.”

While this challenge can arise in any geography, Fei believes the problem is particularly prevalent in Asia–Pacific.

“We’re dealing with diverse cultures; many people are speaking second languages and don’t want to speak up. So, I think it takes encouragement to create a culture where the team can share bad news, or simply what they observe,” he says.

After years of managing change to get the right talent, the right culture and a renewed focus on regional markets, Fei feels that everything is aligned for the company’s future success.

“Our major business segments now all have a strong presence across China and all of the Asia–Pacific region. I think the opportunities for our new combined company are just phenomenal, we just need to go out and execute,” he says.