Schaeffer Oil

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Schaeffer Oil is a privately held, U.S. company, which operates under the name Schaeffer Manufacturing Company. Schaeffer manufactures specialty lubrication products, including performance additives, friction modifiers, and synthetic oils, greases and compounds. Schaeffer products are marketed directly by the company to end users in a variety of industries, including: construction, mining, agriculture, manufacturing, trucking, marine, and high performance racing. As of 2010, the company had domestic and international sales in excess of $90 million.

History

Schaeffer Manufacturing Company was founded in 1839 by a German immigrant, Nicholas Schaeffer, in St. Louis, Missouri,[1] under the name Nicholas Schaeffer and Company. Originally producing soaps and candles,[2] the company began manufacturing oils and greases to support the westward expansion during the 1849 California Gold Rush. Pioneers traveling west from St. Louis used Schaeffer soap and candles for domestic use products as well as for grease for wagon wheels.[3] As St. Louis established itself as a major Mississippi port and industrial city, Schaeffer manufactured products expressly for the high large number of wagon trains and steamboats that made their way through the city. The company’s original line of lubricants was sold under the trade names Red Engine Oil and its original line of grease was called Black Beauty grease.[3] By 1862, Schaeffer produced over $1M in annual sales.[1] Miners in the Klondike gold rush later in the century reportedly smeared Black Beauty grease on their faces to ward off frostbite.

Founder Nicholas Schaeffer was a contemporary of another successful St. Louis business owner, Eberhard Anheuser, who also was a fellow soap-maker. Along with Anheuser, Schaeffer was a creditor of the Bavarian Brewery Company, a struggling brewery founded in 1853. When the brewery encountered financial difficulty in 1860, Schaeffer and Anheuser purchased the minor creditors' interests and took over the company. Two years later, Anheuser bought out Schaeffer’s interest in what later became the Anheuser-Busch Company. Nicholas Schaeffer and Company continued to grow and was widely successful, eventually placing its owner as one of St. Louis’ first millionaires.[2] Nicholas Schaeffer led the company until his death in 1880.

In 1879, Jacob Schaeffer became president of the company and changed the name to Schaeffer Brothers and Powell. The company became the largest soap and candle maker west of the Mississippi,[1] producing Boss laundry bar soaps, crude glycerin, various grades of lard oil and Coach and Star brand candles. Schaeffer’s Star Candles were discovered in the wreck of the Bertrand Steamboat,[4] which ran aground and sank on the Missouri River in 1865.

During the 1904 World’s Fair, Schaeffer Brothers and Powell participated as sponsors.

William Shields, became president of the company, when his father-in-law, Jacob Schaeffer, died in 1917. Shields remained president until his oldest son, Tom Shields, succeeded him in 1946.

In 1947, the company initiated a number of new products and aggressively remodeled their business structure into a direct selling format.[2] The name of the Company was changed to Schaeffer Manufacturing Company and in 1950, the company closed its soap and candle-making businesses to dedicate its resources to lubricant manufacturing. During this period, Schaeffer began building a direct sales force under the leadership of sales manager Martin J. Schwab. After the death of Tom Shields and Martin Schwab in 1982, John Schaeffer Shields became Chairman of the Board and continues to oversee the company’s leadership.

It was also during this period that grease and oil blenders at Schaeffer began to experiment with the use of molybdenum disulfide as an extreme pressure lubricant. Schaeffer was recognized as one of the leaders in the use of molybdenum as a friction modifier in the 1986 publication of Lubes n Greases Magazine.

In 1986, Tom Herrmann, the son of Jackie (Shields) Herrmann, became the president of the company. At that time, annual sales were $18M, primarily in the agriculture and mining markets. Herrmann implemented an aggressive growth strategy and expanded the markets to include steel manufacturing, food processing and industrial customers. In 2004, Jay Schaeffer Shields became the president of the company.

Today, Schaeffer Manufacturing Company is the oldest oil and grease manufacturer in the United States. The company has also been recognized as one of Inc. 5000 best run privately held companies. As a family-owned and operated business since 1839, Schaeffer is among the oldest manufacturing companies west of the Mississippi.

Environmental Stewardship

Schaeffer Manufacturing Company has been committed to environment stewardship since 1965. Schaeffer has developed energy conserving lubricants, as well as products that are considered extended-use, reducing negative impact on the environment and cutting disposal costs for consumers. Schaeffer manufactures several fuel additives that are soy-based, including Soy Ultra and Soy Shield. Additionally, it offers products that aim to reduce the amount of water needed to grow crops in drought-prone areas, named Wet-Sol and Wet-Sol Gro. Schaeffer’s proprietary additives, Micron Moly and Penetro, reduce temperatures and help extend lubricant life, reducing energy up to 5%. Schaeffer also produces SchaefferSeal Tire Sealant, which seals tires to help keep them inflated for maximum fuel economy, and a bed release agent that is biodegradable and provides an alternative to harsher cleaners such as kerosene, diesel fuel, and soaps. The company was the first major lube supplier to the global mining industry to introduce solvent free technology for open gear compounds.

Schaeffer is a leading manufacturer of biodegradable lubricants and cleaners. Biodegradable lubricants are designed to dissipate rapidly when spilled into environmentally sensitive areas.

Government and Military Sales

In 1991, Schaeffer donated lubricants specially designed for high contamination environments to the U.S. military for use in Desert Storm and Desert Shield. Following the Gulf War, Schaeffer was awarded a commendation from President George H. Bush and Secretary of Defense Dick Cheney for “support of the troops.” In 2005, the company established a GSA Contract with the federal government to supply products to federal facilities, including post offices, prisons, federal law enforcement, national parks and the U.S. military.

Company Structure

Schaeffer markets its products through factory trained, independent representatives that sell in particular areas around the United States and Canada. The domestic sales force is divided into 15 divisions supported by 12 warehouses that ship to end users. Sales representatives are paid on commission. Schaeffer has 53 Certified Lubrication Specialists (CLS). The Society of Tribologists and Lubrication Engineers certifies members of the technical society as “certified” once they have passed an examination. To date, there are less than 1,000 CLS worldwide.[5]

International sales are directed through distributors. International distributors are independent of the company, but are well trained and supported. Several of Schaeffer’s international distributors also hold the CLS designation, including Schaeffer Pacific and Schaeffer Mexico.

All manufacturing occurs at the St. Louis facility.

Marketing and Racing

Schaeffer products are primarily marketed directly to end users by their factory direct sales force. The company limits retailers, distributors and resellers to focus on bulk and commercial business. Consumer and automotive business is not a primary focus of the marketing effort of the company.

Schaeffer has a long history of providing oil for the automobile racing industry, and offers a special line of oils that are designed specifically for racing.

Schaeffer Oil has had several long-term relationships with famous racers, including Charles “Red” Farmer, who has won between 700 and 900 victories, was named to five Hall of Fames, and was named NASCAR’smost popular driver four times. Additionally, Scott Bloomquist, National Direct Late Model Hall of Famer, also uses Schaeffer products.

References

  1. ↑ 1.0 1.1 1.2 Reavis, L.U. Saint Louis: the future great city of the world". Nabu Press, 2010. ISBN 1178068986
  2. ↑ 2.0 2.1 2.2 Perman, Stacey. Learning from the Great Depression". Bloomberg Business Week, Oct 17, 2008. http://www.businessweek.com/smallbiz/content/oct2008/sb20081016_825689.htm
  3. ↑ 3.0 3.1 Poe, William Some Family Businesses Have Left the Family Corner Store Far Behind." St. Louis Commerce Magazine. November 2003. http://www.stlcommercemagazine.com/archives/november2003/family.html
  4. ↑ Peterson, Leslie Perry. The Bertrand Stores". Midwest Interpretive Association, 1997.
  5. ↑ "CLS Certification Directory. Society of Tribologists and Lubrication Engineers website. 2010. Retrieved January 10, 2010.[1].

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