Fastenal
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| Fastenal logo | |
| Company type | Public (Nasdaq: FAST) |
|---|---|
| Industry | Industrial & Construction Supply |
| Founded | 1967 |
| Headquarters | Winona, Minnesota, United States |
Key people | Willard Oberton, Nicholas Lundquist, Leland Hein, Steve Rucinski, James Jansen, Jason Lockhart |
| Website | www.fastenal.com |
Fastenal (Nasdaq: FAST) is a company based in Winona, Minnesota, founded in 1967 by Bob Kierlin. The current CEO and President is Will 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.
Company history
Fastenal went public in 1987, its growth accelerated, and it eventually became North America's largest distributor of fasteners in a $9 billion industry. As of December 31, 2008, the company operated over 2,300 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; fleet & automotive; 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. FASTCO stands for Fastenal Asian Sourcing and Trading Co. The wholly owned subsidiary is located in Shanghai, China and is responsible the international procurement of product for their distribution centers and stores.
As of December 2008, the company operated 15 distribution centers, in or near Winona, Minnesota; Indianapolis, Indiana; Denton, Texas; Houston, Texas; 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 León, 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.
Fastenal'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, as well as the maintenance and repair of machines and structures. The company opens each Fastenal store with a selection of base stocks of inventory and then allows the local store and district leaders to tailor additional inventory to meet 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.
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.[1]
Fastenal Racing
In 2006 Fastenal Racing announced a two year sponsorship agreement with BHR (Bobby Hamilton Racing) to sponsor a truck in the NASCAR Craftsman Truck Series. Bobby Hamilton Sr. was to be in the seat for all of the serires races during 2006. During the season Bobby Sr. was diagnosed with head and neck cancer forcing him to step back from his driving duties, his son Bobby Hamilton Jr. took over for his father for the remainder of the season. During 2007 driver Kenny Schrader filled in for most of the races.
In January 2009, Fastenal Racing announced a partnership with JRM (Junior Motorsports). Dale Earnhardt Jr, Scott Wimmer, Ryan Newman and Ron Fellows were seated in the No. 5 Fastenal Chevrolet for 14 of the NASCAR Nationwide Series races of 2009.
In November 2009, Fastenal Racing announced a partnership with RFR (Roush Fenway Racing). NASCAR Sprint Cup Driver, Carl Edwards will be in the seat of the No. 60 Fastenal Ford for 15 races during the 2010 NASCAR Nationwide Series season.
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 Managers 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.[2] 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."
It was reported by Reuters on December 15, 2009 that Glassdoor.com ranked Fastenal as one of the 50 worst companies to work for. Prior to this announcement, Jobvent.com also rate Fastenal in the bottom 5 companies to work for as reported by their members.[3]
However, upon further investigation into the complaints listed on glassdoor.com and jobvent.com, it was found that 92.3% of disgruntled ex-employees were ignorant and/or illiterate. Despite being ignorant and illiterate, the employees were hired by Fastenal[4]
Fastenal Engineering & Design Support
Fastenal introduced a branding effort for their engineering and technical staff in 2009. Fastenal Engineering & Design Support (FEDS) is a team of qualified individuals that support the company and its customers with technical support. The level of support they offer ranges from answering simple questions and assisting with fastener selection to performing a complete disassembly of their customer's products in order to find opportunities for better fastener selection for cost savings or improved performance.
This team of experts is headquartered in Winona, Minnesota where they have their own A2LA accredited testing facility.[5]
