Mike Heraty embodies an increasingly rare executive paradigm: The leader of ECP Inc. has been with the same company for nearly 40 years, steadily rising through the ranks and helping propel the F&I products, services and training provider to new heights of success. 

The self-described “Chicago kid” also has had the good fortune to remain in his hometown — ECP is headquartered in Woodridge, Ill., a southwestern suburb — as his career advanced. 

His tenure began in October 1986 and ran the gamut from materials and plant management to sales, claims administration, and in 2003 a promotion to vice president of operations. He was appointed president and CEO in December 2023. 

“I have had the unique opportunity to grow up with ECP,” Heraty says. “As a 20-year-old kid, I began rebuilding undercoating pumps. Along the way, I was able to grow into multiple supervisor and manager positions. I believe this journey has given me a unique perspective as a leader.”

Success Through Challenging Times 

Heraty takes pride in his multifaceted career path and his role in ECP’s evolution and growth. But he says team success is his driving force and the true measure of a leader. With guidance and support, people can work as a team, do what they do best and meet the solid and attainable goals set out for them. 

“What I’ve learned about being a leader from this experience is that you are only as good as the team around you,” he says. “We’ve built a great team here at ECP, and that team is the reason we will continue to grow and be successful.”

But there are challenges ahead, Heraty says, starting with the same economic headwinds that have plagued retailers and their partners over the past several years. 

Inflation remains historically high. Despite a series of cuts, interest rates remain elevated. Prices continue to escalate. Trade-ins purchased during the pandemic are rolling back onto dealer lots loaded with negative equity. Edmunds reported that in the third quarter of 2024 20% of buyers with upside-down loans owed at least $10,000 and 7.5% owed more than $15,000. 

Consumers remain sensitive to high prices and monthly payments, Heraty says. But they don’t like to downsize.

“Just to be able to sell a customer a vehicle, dealers must reduce profit substantially from what the norm has been in recent years. This also affects F&I profits as, once more, the consumer cannot afford the extra products. So instead of two and a half products per unit, we must settle for one or one and a half.” 

When times get tough for dealers, Heraty believes providers have an opportunity and an obligation to step in and step up. 

Products, Services and Training 

Heraty describes ECP as “full-line,” a term once used exclusively to describe a competitive product lineup. Today, it means that and much more. Providers are expected to deliver timely and strategic solutions, services and support to keep up with changing demands and help offset lost profits. 

ECP has a built-in advantage, in that its protective coatings are noncancelable, generating “forever money” to drive F&I and dealership profits. 

“When there is room for more payment, we suggest the first product presented to the customer be a noncancelable product,” Heraty says, adding that ECP has developed “state-of-the-art” point of sale and marketing materials and has expanded its reach with the latest digital and social marketing tools. “Our goal is to be the go-to supplier for our agent and dealer customers. To do that, we have to be on top of everything new and innovative and be able to relay that information to our customers.”

But there is no substitute for training, Heraty says, and ECP puts a heavy emphasis on educating dealership professionals. The company’s National Training Center provides sales and income-development training, supplemented by online and in-dealership training and regional events. Additionally, all of ECP’s district and regional directors have retail backgrounds. 

“At ECP, we don’t just talk about training, we do it — from the salesperson that sells the vehicle, to the manager that desks the deal, to the F&I managers, all the way back to the application of the product in the service department.”

Goals for 2025

The year ahead could bring renewed stability to auto retail and finance, with a contentious presidential election in the rearview mirror and interest rates on the decline. Heraty says ECP will continue to bring new and innovative products to market in 2025, with some set to launch soon. 

While ECP’s dealers and agents prosper, Heraty says the company’s compliance team will be hard at work behind the scenes, keeping tabs on a tempestuous regulatory climate. He believes providers must be proactive to protect their partners and customers. 

“In the current environment, being on top of compliance is essential. We have a fully staffed department that ensures we are ahead of any changes while offering our customer base the confidence that the products and programs we are supplying are completely compliant.”

Heraty says he is grateful for the opportunities the company has afforded him and all the people he has worked for and with. After a little over a year at the ECP helm and more than 38 years with the organization, when he reflects on one of the pivotal moments in his career, he doesn’t have to pause to remember where he was working at the time. 

“The nice thing about stepping into my current role is that, because of my history here, I have been intimately involved in ECP’s plans as they have been developed,” he says. “We have stayed the course, for the most part. But I have also tried to involve the team more in determining what they believe will most benefit the long-term goals of the organization.”