Fastenal
Introduction
Fastenal, is a North American-based company that deals with the supplying and distribution of fastening tools and products such as threaded rods, nuts, screws, et cetera which are used in the manufacturing industry as well as the construction industry. Fastenal Company is one of the leading companies that produce fasteners, the company’s service model spans approximately 3, 200 market locations. Based on its astounding performance in the industry, Fastenal Company is ranked 479th on the Fortune 500 as a result of its 2020 revenue generation. Fastenal Company sells its stock as a component of the S&P 500 and the Nasdaq 100 stock market indexes. The company’s operations span across major countries of the world as offices, and facilities are present in North America, including United States, and Canada; Asia, including Japan and China, as well as Europe including the Netherlands, Germany, and the United Kingdom. The company’s headquarters are, however, based in Winona, Minnesota, United States. In its entirety, the company refers to and recognized itself as a supply chain solutions company whilst, one of the largest news agencies in the U.S. operating under the name, Reuters calls it an industrial distributor. However, in this article, you will be shown a more detailed, comprehensive, and extensive review of the Fastenal Company, its operations, and its dealings. As such, all relevant information detailing its key facts, its historical background, its product niches, and service offerings, its financial overview, as well as its pros and cons will be concisely covered to enable you to understand the significant and major elements of the fastening-oriented company as quickly as possible.
Key Facts
Founding Year: Fastenal Company was founded in the year 1967, approximately 55 years ago.
Industrial Ranking: Fastenal Company is proud to be ranked and enlisted on the Fortune 500 list, ranking the 479th position as one of the largest companies with higher revenue in the United States.
Company Type: A Public Corporation (PLC)
Distribution Strength: 14 regional distribution centers, and an internal truck fleet. Millions of products are made available through its supply chain and network.
Industry Type: Fastening Tools
Trading Type: Fastenal Company is traded on the New York Stock Exchange (NYSE) market under the ticker name, FAST
Workforce Strength: Fastenal Company has a total number of 20, 507 employees in its workforce globally.
Historical Background
Fastenal Company was founded in the year 1967 by entrepreneur, Bob Kierlin, and on the 24th of December, 1968 it was formally incorporated. The overall operations of the Fastenal Company include providing and availing products for manufacturers and construction companies.
In the year 1994, Fastenal Company dives into the Canadian market. And according to a research-based fact, Fastenal Company now has retail sales outlets across all Canadian provinces. In addition to that, the company also has two Canadian distribution centers.
In the year 1999, Fastenal Company extended its operations to Mexico, and as of a recording released in 2009, Fastenal Company had already established its retail outlets in 14 different states in Mexico as well as a major distribution center.
Throughout the years of the 2000s, Fastenal Company extends into the coast of Asia and has a subsidiary branch operating under the name, Fastenal Asian Sourcing and Trading Co. Located in the heart of Shanghai, China. This division oversees and directs import purchasing and sourcing activities. In the year 2001, Fastenal Company opens a facility in Singapore, which technically marks its first site outside the shores of North America.
Additionally, as of 2000, Fastenal Company employs over 400 individuals at six manufacturing locations, as well as on manufacturing bolts made facility, cold heading located in Rockford, Illinois, an operation based in Wallingford, Connecticut, as well as another in Malaysia.
In the year 2006, Fastenal Company already had two sourcing facilities in Asia, Taiwan, and China, and both offices have accredited testing laboratory which was A2LA certified as 2007. During this period, Fastenal Company had now grown to become one of the most sought-after international companies that deals with the sale of manufacturing tools as it has facilities located in several countries like the Dominican Republic, the Netherlands, Germany, the United Kingdom, Hungary, as well as Singapore. However, in its entirety, Fastenal Company controls a total number of 3, 209 facilities under its corporation severing the enter North America, which include United States, Canada, and Mexico; countries in the European continent, as well as Asia.
In 2008, Fastenal Company was added and enlisted to the S&P 500 index. It addition was a replacement for the corporations that were removed.
By the year 2009, the sales operations occurring in Malaysia were used to complement relatively lower operations happening in Shanghai, China. All Malaysian-related trading activities are associated with a locally incorporated division of the Fastenal Company, operating under the name, Fastenal Malaysia Sdn Bhd. The division operates an A2LA-accredited testing laboratory in this country as of 2014.
In the year 2009, Fastenal Company bought parts of the HoloKrome, a company dealing with socket screw-making.
In 2016, January, Daniel L. Flores was appointed as the company’s president and CEO. Although, Florness’s history began with the company in the year 1996, when he served as the company’s Chief Financial Officer (CFO).
Fastenal Company is one of the NASCAR sponsors since 2006, and most recently in 2020, it became the official MRO partner of the NHL.
Products Niches
The niches listed below are segments that enclosed Fastenal products.
Fasteners
Cutting Tools & Manufacturing
Material Handling, Storage & Packaging
Tools & Equipment
Fleet & Automotive
Abrasives
Safety
Hydraulics & Pneumatics
Power Transmission & Motors
Plumbing
Metals, Materials, & Fabrication Equipment
Chemical & Paints
Lifting & Rigging
Welding
Janitorial
Office Products & Furniture
HVAC
Service Offerings
Fastenal Company services focus on three different segments (1) inventory control solutions (2) Custom manufacturing (3) Additional Services.
Inventory Control Solution
This segment offers the following services:
Local inventory stocking
Dock-to-dock delivery, Jobsite solutions, in-plant location
Custom line stock/bin-stock programs
Fast SolutionSM , an automatic supply technology that helps you track and control consumption
Custom Manufacturing
This segment has a total number of 9 manufacturing locations, and over 300 machinists. And runs orders from short-run specials to high volume orders, instant quotes on bolt configuration, as well as ISO 9001:2008 operations, and in house A2LA lab. However, it services include the following:
Cold Heading
Hot Forging
Turning (which include Multi-Function Turning Centers)
Machining
Water Jet Cutting
Threading, et cetera.
Additional Services
Fastenal Company additional services span across segments like industrial services, manufacturing services, product services, as well as engineering and lab services.
Industrial Services
Fastenal Company industrial services include:
Custom Chain Sling Fabrication & Inspection
Cut-to-Length Metal, Cable & Chain
Hose Fabrication
Hoist & Tools Repair & Certification
Weld-to-Length Bandsaws
Manufacturing Services
Fastenal Company manufacturing services include:
Metals, Material, and Alloys Services
Tool and Cutter Grinding
Product Services
Fastenal Company products services include:
Custom Packaging/Parts Kitting
Fastenal Solutions
Product Direct/Sourcing
Import Services
Engineering & Lab Services
Fastenal Company engineering lab services include:
A2LA Lab Testing & Accredited Calibration
Fastenal Design and Engineering Support
Financials
Revenue: 6.01 Billion USD
Operating Income: 1.22 Billion USD
Net Income: 925 Million USD
Total Assets: 4.30 Billion USD
Total Equity: 3.04 Billion USD
Pros
Wide range of products and service offerings: in its entirety, Fastenal Company offers a wide range of product and service offerings, as such, customers can get to pick from a pool of products and service listings.
Vast and wide market reach: With its presence in major continents across the world like North America, Europe, and Asia, Fastenal Company no doubt has a wide range of market reach.
Extensive training for new employees: Employees at Fastenal Company reports the company has a tremendous and comprehensive training process for new employees that adds value to their respective career pursuit.
An environment that fosters career development: Employees also describes the company as a great environment to work in.
Cons
Low Remuneration: Fastenal Company reportedly offers low payment which is not on par with industrial standards.
No Work/Life Balance: as a result of the stressful working hours of Fastenal Company, employees have no work/life balance.
Poor Management and Employee Support: Some employees complain about the company’s poor management system, as well as its little or no interest in staff support.
Conclusion
In its entirety, Fastenal Company, is an amusing and intriguing case to study as a result of its long-shot years in the industry, its innovative milestones as well as its commitment to customer service. As seen in the above-detailed history that the company leverages its industrial insights and expertise to attain such a great feat and it’s still committed to doing the same so as to keep the company in its global recognition status. Finally, I hope your expectation highlighted in the introductory portion of this paper have been addressed. However, on the off chance that you are yet to completely absorb all that is drafted in this piece at once, I recommend that you review it over and over again until you are in sync with the entire information.
