By the early 1990s each Fastenal store was offering a huge 30,000 items. Cookies are not used for the processing, collection or storage of personal data under any circumstances. After posting record net earnings of $11.9 million in 1993, Fastenal’s net income surged to $18.7 million in 1994. International Directory of Company Histories. Another cause for optimism was the continued leadership of the thrifty Kierlin, who remained firmly in charge as chairman, president, and CEO, and who continued to hold a 10.6 percent stake in the firm he cofounded, a stake worth more than $250 million as of mid-2001. [8] Today's product range is more diverse, and the company had a total of 690,000 individual products as of 2010. His cluttered office in Winona housed a telescope that he used to birdwatch (Winona is perched along a scenic stretch of the Mississippi River about 100 miles south of Minneapolis). Storm, Sheila, “Fastenal to Add New Stores,” Successful Business, December 9, 1991, p. 1. As of 2020, Fastenal is one of the leading brands in the lifestyle and retail sector. Fax: (215) 698-7151 https://www.encyclopedia.com/books/politics-and-business-magazines/fastenal-company, "Fastenal Company Fastenal Company[6] is an American company based in Winona, Minnesota. He also held a fierce commitment to education. As a result, Fastenal was able to generate profits on the basis of reliability and quick service. That move spurred growth, first into La Crosse, Wisconsin, and then throughout the upper Midwest. The PE ratio (or price-to-earnings ratio) is the one of the most popular valuation measures used by stock market investors. 1965Dennis Enroll with a Shipping Forwarder. Ford’s regular supplier told the company it would have to wait until Monday —three days later. shelf. Giving credence to the optimistic view of the company’s future was Fastenal’s proven ability to select the right sites for its stores; only four locations had been closed in the entire history of the company. Kierlin backed his rhetoric financially. His cluttered office in Winona housed a telescope that he used to bird watch (Winona is perched along a scenic stretch of the Mississippi River about 100 miles south of Minneapolis). The partners were delivering nuts and bolts in a 1949 Cadillac and having to periodically chip in $ 1,000 from their savings just to keep the company afloat. International Directory of Company Histories. Famous for the frugality of the company founder, Fastenal is also distinguished by its record of rapid, highly successful growth since going public in 1987. Fastenal offers same-day service on thousands of construction and industrial supplies. “I wondered if you could put together a store with all the parts,” Kierlin recalled in the November 9, 1992 issue of Forbes . Fastenal Co. (Nasdaq: FAST), Winona, Minnesota, reported November sales of $441 million, up 6.8% from the same month a year ago. Doing Well by Sticking to Nuts and Bolts,” Minneapolis Star Tribune, September 27, 1993. Ste 101 (613)389-3968: Fastenal - Kitchener (NSSYD) The company was also experimenting in 1995 with a small Fastenal/FastTool combination store for small towns with 5,000 to 8,000 residents. Even when his company became a publicly traded, multimillion-dollar corporation, he paid himself only $120,000 annually, which was less than he paid several of his employees. Fastenal's Asian trading company, Fastenal Asian Sourcing and Trading Co, is a Wholly Foreign-Owned Enterprise located in Shanghai, China, where it directs sourcing[11] and import purchasing activities. "Fastenal Company Unless otherwise specified in writing, all material submitted to Fastenal.ca will be presumed to be public and Fastenal.ca will not be required to treat such information as confidential. With some effort, he was able to persuade an IBM co-worker, Jack Remick, to help him pursue his goal of selling nuts and bolts. Cite this article Pick a style below, and copy the text for your bibliography. Fastenal branched out during the early 1980s. That number grew to 45 in 1986 and 58 in 1987. One Vision Dr. Doing Well by Sticking to Nuts and Bolts,” Star Tribune, September 27, 1993, Section BUS. U.S.A. The idea stuck with Kierlin. Kierlin continued to improve Fastenal’s strategy during the 1970s and gradually began expanding with new stores. Another method that Fastenal employed to make up for the revenues that would have accrued from the previous faster pace of store openings was to place increased emphasis on sales of the newer product lines. You checked the company’s website and are sure that Fastenal or the other e-commerce store you want to purchase from will not ship to Canada. Swalboski, Gran, “Booming Fastenal Driven by Service,” Successful Business, March 11, 1991, p. 22. The men finally settled on Fastenal, as in “Fasten All.” Remick hand-painted the store sign, which one day would be framed and hung in the company’s headquarters offices. “Meanwhile, its costing them something like $50,000 an hour to have this line not operating,” Slaggie said in the March 11, 1992, Successful Business. Also joining Kierlin were former high-school buddies Michael Gostomski, Dan McConnon, and Steve Slaggie. Forster, Julie, “Nuts-and-Bolts Style Suits Fastenal’s Kierlin,” Corporate Report Minnesota, July 1999, p. 22. Fastenal entered 1995 with 330 stores in 44 states, each of which offered 37,000 different items, and the company planned to add 150 outlets to the chain within the next few years. Fastenal resells industrial, safety, and construction supplies and offers services including inventory management, manufacturing, –. Burcum, Jill P., “Winona’s Fastenal Bolts Past $100-Million Mark,” Corporate Report Minnesota, November 1994, p. 22. I was able to buy a handful of the bolts I required and the service was great. ft. shop in his hometown of Winona, MN. . Fastenal entered 1995 with 330 stores in 44 states, each of which offered 37,000 different items, and the company was planning to add 150 outlets to the chain within the next few years. Kierlin focused aggressively on customer service and used his financial background to keep tight control on the company’s finances. As an example, a contractor paying employees $30 per hour in wages and benefits couldn’t afford to have a project held up by the lack of a special fastener for a piece of equipment —and he knew he could find it at Fastenal. Thanks to these individuals and resources, Fastenal Canada accounted for over 6% of total company revenues, or $300 million, in 2018. Another quarter, another big win for Fastenal Company, a wholesaler and retailer of industrial and construction materials like screws, bolts, and fasteners in … Glassdoor gives you an inside look at what it's like to work at Fastenal, including salaries, reviews, office photos, and more. In addition, unlike other chief executives who received low salaries, he paid himself no incentive bonus of any kind. The stores stocked a large selection and promised prompt delivery of any item that wasn’t on the Costs were kept low by locating shops in low-rent districts and minimizing other overhead. Also unusual was the fact that no employees had their own parking spaces and everyone, including Kierlin, received the same vacation benefits. (812) 867-6471 After graduating from high school in 1957 he went on to major in mechanical engineering at the University of Minnesota, where he later earned his M.B.A. After college Kierlin accepted a job with IBM in nearby Rochester. Founded in 1967 by Bob Kierlin, it was incorporated December 24, 1968. In 2000 Fastenal began operating a second manufacturing facility at its Fresno, California, distribution center. Rather than targeting the general consumer, they decided to focus on the commercial market. Amazingly, Fastenal moved through the early 1990s with virtually no long-term debt, while expanding at a rampant pace. Positioned next to Fastenal shops, FastTool carried the same concept to the tool market by offering about 3,000 different power and hand tools and safety products. Kierlin and his … The concept became relatively simple: the partners would open outlets in small to medium-sized towns like Winona and Rochester, where price competition tended to be lower than in large cities, which had special fasteners and parts more readily available. Minnesota's 75 Largest Public Companies Costs were kept low by locating shops in low-rent districts and minimizing other overhead. If a hardware store didn’t have the right nut or bolt, the owner would often send the customer to the Kierlins’ store, and vice-versa. They and the other co-founders, all of whom were board members, were still the principal shareholders of the company, which remained based in Winona. The Fastenal story began in 1967 when Bob Kierlin pooled together $30,000 with four friends and opened the first Fastenal store, a 1,000 sq. This is the Fastenal company profile. . “The ship almost went under,” Slaggie recalled. The group’s first dispute was over what to name the store. Someone suggested “Lightning Bolts,” but two of the founders were so opposed to the name that they threatened to take their money and leave. There was so much red ink.”. The idea for Fastenal was conceived by 11-year-old Robert (Bob) A. Kierlin. [7] In addition to a plethora of SKUs, the company offers a variety of services, including inventory management, small fastener manufacture, vending, and machining. Instead, he was content to watch his ownership interest in Fastenal grow along with the company. © 2019 Encyclopedia.com | All rights reserved. Encyclopedia.com. Kierlin and the other cofounders, who still owned a combined 45 percent of the company, had become millionaires. With solid gains in existing store sales, company revenues increased to $110 million in 1993 and $161 million in 1994. 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