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Fastenal
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Fastenal is a company based in Winona, Minnesota, founded in 1967 by Bob Kierlin. The current CEO and President is Willard D. Oberton.
Fastenal sells industrial and construction supplies, the main inventory being fasteners such as screws, nuts and bolts. The company also distributes 14 other product lines ranging from safety and janitorial supplies to welding equipment and tools. Fastenal went public in 1987, its growth accelerated and it eventually became the nation's largest distributor of fasteners in a $9 billion industry.
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Encyclopedia
Fastenal is a company based in Winona, Minnesota, founded in 1967 by Bob Kierlin. The current CEO and President is Willard D. Oberton.
Fastenal sells industrial and construction supplies, the main inventory being fasteners such as screws, nuts and bolts. The company also distributes 14 other product lines ranging from safety and janitorial supplies to welding equipment and tools. Fastenal went public in 1987, its growth accelerated and it eventually became the nation's largest distributor of fasteners in a $9 billion industry. As of January 2008, the company operates over 2,160 stores in all 50 states and five other countries. Their motto is "growth through customer service."
Fastenal Company offerings are grouped into 15 product categories: fasteners; material handling, storage & packaging; safety; construction products; tools & equipment; plumbing, HVAC & pumps; electrical; chemicals & paints; janitorial; hydraulics, pneumatics & power transmission; welding; abrasives; metalworking & cutting tools; tooling components & precision measuring; and raw materials & machinery. Fastenal conducts its business in the United States, Canada, Puerto Rico, Mexico, Singapore, China, and the Netherlands under various trademarks and service marks, including Fastenal and Fastco.
As of December 2008, the Company operated 15 distribution centers, in or near Winona, Minnesota; Indianapolis, Indiana; Denton, Texas; Houston, TX; Atlanta, Georgia; Jessup, Pennsylvania; Modesto, California; Lakewood, Washington; Akron, Ohio; Salt Lake City, Utah; High Point, North Carolina; Edwardsville, Kansas, Kitchener, Ontario, Edmonton, Alberta and Nuevo Leon, Mexico. Fastenal also currently operates in Canada, China, Mexico, Netherlands, Puerto Rico, and Singapore. Distribution centers are located so as to permit twice-a-week to five times-a-week deliveries to Company stores using Company trucks and overnight delivery by surface common carrier such as Blue Global. Approximately 85% of the Company's stores receive five times-a-week delivery.
The Company's original product offering was fasteners and other industrial and construction supplies, many of which are sold under the Fastenal product name. This product line consists of two broad categories: threaded fasteners, such as bolts, nuts, screws, studs, and related washers, and miscellaneous supplies, such as paints, various pins and machinery keys, concrete anchors, batteries, sealants, metal framing systems, wire rope, strut, private-label stud anchors, rivets and related accessories.
Threaded fasteners are used in most manufactured products and building projects, and in the maintenance and repair of machines and structures. The Company opens each store with a selection of base stocks of inventory and then allows the local store and district leaders to tailor the additional inventory to the local market demand as it develops.
The company also operates the Fastenal School of Business, which specializes in in-company training for new and existing employees.
In November 2007, Fastenal announced a multiyear agreement with Chip Ganassi with Felix Sabates that makes Fastenal the sponsor of the team's No. 40 car in the 2008 NASCAR Nationwide Series. The primary driver of the No. 40 Fastenal Dodge is 2007 IndyCar and IRL points champ Dario Franchitti.
Following the Federal takeover of Freddie Mac and Fannie Mae in September 2008, the S&P 500 removed the two mortgage giants after Wednesday, September 10, 2008, and added Fastenal and Salesforce.com to the index, effective after Friday, September 12, 2008.
Employee Relations and Criticism
In 2008 Fastenal announced a $10 million cash settlement to a class action lawsuit alleging that the company failed to pay overtime to some former Assistant General Managers. The lawsuit was filed by former Fastenal Assistant General Managers accusing the distributor of misclassifying its Assistant General Mangers as exempt from the federal Fair Labor Standards Act and corresponding state wage and hour laws in California, Oregon, and Pennsylvania. The Plaintiffs were represented by Nichols Kaster, PLLP. Fastenal has denied the allegations but said it settled "in order to avoid significant legal fees, the uncertainty of a jury trial, distractions to Fastenal's operations, and other expenses and management time that would have to be devoted to protracted litigation."
The users on the website www.jobvent.com have rated Fastenal as a poor company to work for. In defense of the company, most of the poor ratings come from ex employees. Despite this criticism Fastenal remains a very popular stock to buy, and produces impressive growth as a whole company.
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