4/25/2012 11:59:00 PM
HEADLINES
“Great Recession” Leaves Leaner Fastener Industry
Sales and profit figures from the opening quarter of 2012 indicate fastener companies have not forgotten lessons learned in their struggle to survive the global economic downturn of recent years.
Hiring is on the rise throughout the fastener industry. And sales volumes are up, with much of that growth coming from organic market share gains.
Price gains are evident as well.
But profits remain more robust than sales, suggesting that while most companies are growing, leaner operating methods necessitated by tough economic times remain in place.
Fastenal is a visible example of this kind of operation.
Known for its aggressive new store opening model, the distribution giant has diversified its growth strategy with a new approach: industrial vending machines. And the strategy seems to be paying off.
Fastenal marked a milestone in April, reaching 10,000 vending machines installed at customer locations. The pace of growth has been impressive — from 892 installed machines in March 2010 to 9,798 machines in place at the end of March 2012.
“In 2011, we … installed 5,528 [industrial vending] machines, an increase of 287% over the 2010 number,” Fastenal stated in its 2011 annual report.
Installations of FAST Solutions began to rise sharply in mid-2011 after Fastenal boosted the program. The build-up included 13 regional “build centers,” a 24/7 tech support team, and more than 70 demonstration vehicles, as well as a dedicated vending program workforce of 200.
Meanwhile, their new store openings have dwindled from their double-digit pace before the recession to an annualized rate of 5% in 2011.
“Expense control has always been a strong focus at Fastenal,” stated CEO Will Oberton, “and 2011 was no exception.”
Overall expense growth last year was 15.3%. Labor and related expenses grew 19.7%. The non-payroll expense category grew at just 6.7%.
“Even more impressive to me is that our two-year growth for the non-payroll expense category was only 4.9% compared to 43.3% sales growth over that same period,” Oberton commented. ©2012 GlobalFastenerNews.com
Related Stories:
• Mild U.S. Winter Boosts Simpson Mfg. Sales
• Fastener Importing Issues Among Topics for Southeastern Panelists
• Haggard & Stocking To Expand Aerospace Division
• Fastener Material Demand Sees “Significant” Improvement
• Computer Insights Promotes DeFalco
• GWR Fasteners Wins Innovation Award
• Report: U.S. Fastener Industry Sees Resurgence
• Chicago Hardware & Fixture Co. Marks 100 Years
• Screw Manufacturer Struggles To Find Skilled Workforce
• Screw Manufacturer Struggles To Find Skilled Workforce
• NFDA Announces Strategic Initiatives
• Former General Fasteners Engineer Named Morris Group Productivity Specialist
• 1980 FIN – Fastener Outlook for 1981 After the Presidential Election
• The Economy and a Presidential Election
• Precision Castparts Expands Aerostructures Capacity
• All Points Fasteners Names Western Regional Sales Manager
• Tanner Fasteners Acquires City Sprint Safety & Supply
• Perryman Co. Acquires Titanium Forgings Supplier
• Southern Fasteners Named to “Companies to Watch” List
• U.S. Sets Dumping Margins on Chinese Threaded Rod
• Grainger Opens Two Distribution Centers
• Brazil Wire Rod Exports to U.S. Double
• Tree Island: Volume and Price Gains Drive Double-Digit Revenue Growth
• MacLean-Fogg Component Solutions Buys Sky Mfg.
• Precision Castparts Expands Forged Products Capabilities
• H. Paulin Adjusting Its Growth Strategy
• EFC International Names Loucks as New COO
• ITW Transportation Revenue & Profit Grow
• NFDA Names Vickie Lester as Executive Director
• Queenin, Reidl Lead NFDA for 2012-13
• Chicago Rivet Reports Impressive First Quarter Results
• 3V Fasteners Named Spirit AeroSystems Platinum Supplier
• Special Rivets Corp. Building 2nd China Plant
• WASI Highlights Automated Handling System
• NFDA Names Vickie Lester as Executive Director
• Queenin: NFDA Charting A New Course
• Circle Bolt & Nut Names New President/CEO
• Taiwan Fastener Suppliers Report Hike in Orders
• Atlantic Fasteners Aerospace Earns QSLD Approval, Adds Buyer
Share: