Early Life
Eric Smidt was born in Los Angeles, California, in 1960. At age 17, he co-founded Harbor Freight Tools with his father, Allan Smidt, in 1977. The business started as a mail-order company selling discounted tools to small businesses and hobbyists. Smidt was the son of a father who struggled to provide for his family and sent him to an orphanage. Smidt later moved to Tennessee to live with his aunt, before returning home and graduating from Grant High School.
Rise to Success
Harbor Freight Tools opened its first retail store in 1982. Eric Smidt became president of the company in 1985 and CEO and sole owner in 1999. Under his leadership, the company expanded significantly. Harbor Freight has since grown to over 1,600 stores across 48 states. The company's revenue is approximately $8 billion in 2024.
Key Business Strategies
Smidt's business strategy focused on direct sourcing, cutting out intermediaries to offer tools at lower prices. He built a strong company culture emphasizing core values, including excellence, continuous improvement, and community. Smidt also focused on delivering a high level of quality while keeping prices low.
Philanthropy
Eric Smidt is the founder and president of The Smidt Foundation, which supports education, healthcare, and veterans. The foundation's signature program, Harbor Freight Tools for Schools, supports skilled trades education in public high schools. Smidt is also a collector of modern art and is on the board of the Los Angeles County Museum of Art.
