Kierlin focused aggressively on customer service and used his financial background to keep tight control on the company’s finances. In the past, when I've needed specific bolts for specific projects, Fastenal has been there for me. There were eight such locations at the beginning of 1999 and 21 at the end of that year. In 2012, Lee Hein took over as President of Fastenal. By region, U.S. sales grew 3%, Canada/Mexico … Buttweiler, Joe, “Fastenal Was Best IPO Performer,” Minneapolis-St. Paul CityBusiness, February 8, 1988, p. 16. 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. Besides its Fastenal stores, the company has also begun operating FastTool and Fastenal/Fast-Tool outlets, which offer an array of tools and safety supplies. Ford’s regular supplier told the company it would have to wait until Monday —three days later. Shaker Heights, OH 44122 All content is posted anonymously by employees working at Fastenal. By 2000, 35.5 percent of overall sales were being generated by the newer, nonfastener product lines. The company runs an A2LA accredited testing laboratory in this nation as of 2014. The stores were typically able to garner profit margins of between 50 percent and 80 percent, which was far above the industry average of about 37 percent. 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. [7] In addition to a plethora of SKUs, the company offers a variety of services, including inventory management, small fastener manufacture, vending, and machining. American industrial supply company based in Winona, Minnesota, Learn how and when to remove this template message, "Fastenal Company SEC Filing 10-K December 2014", "FASTENAL CO 2013 Annual Report Form (10-K)", "FASTENAL CO 2014 Q1 Quarterly Report Form (10-Q)", UPDATE 1-Fastenal Q3 results beat market estimates, Fastenal Company to Acquire Holo-Krome Company, President’s Letter to Shareholders (2008), President’s Letter to Shareholders (2009), Salesforce.com, Fastenal to Replace Fannie, Freddie in S&P 500, List of companies based in Minneapolis–Saint Paul, https://en.wikipedia.org/w/index.php?title=Fastenal&oldid=995768170, Articles with dead external links from August 2019, Articles with permanently dead external links, Articles with a promotional tone from May 2017, Articles with unsourced statements from March 2014, Creative Commons Attribution-ShareAlike License, This page was last edited on 22 December 2020, at 20:07. “We’d look at the income statement and say, ‘We lost how much money?’ and then order a round of Budweisers. Importantly, in 1981 Fastenal purchased the inventory and customer list of the fastener lines of Bliese Steel in Rochester. It entered the Canadian market in 1994,[citation needed] as of 2009 Fastenal had retail sales outlets in every province and two Canadian distribution centers. Storm, Sheila, “Fastenal to Add New Stores,” Successful Business, December 9, 1991, Section 1, p. 1. Fax: (901) 495-8300 U.S.A. Telephone: (404) 231-0011 “They called us and the part is an oddball, something we don’t have in stock. Even per-store sales continued to climb, despite economic recession in the early 1990s. Also joining Kierlin were former high school buddies Michael Gostomski, Dan McConnon, and Steve Slaggie. ECCC states that Kitchener, Ontario-based Fastenal Canada imported and sold aerosal products containing HCFCs between … Cookies are not used for the processing, collection or storage of personal data under any circumstances. In one instance, a Ford plant’s assembly line was shut down by a breakdown that required a few dozen special bolts. Kierlin focused aggressively on customer service and used his financial background to keep tight control on the company’s finances. Most of the initial planning was done during the weekends and other times when the group could get time off from work. The founders’ goal with Fastenal was to devise a means of making all kinds of nuts and bolts readily available to the general consumer. Vending and managed inventory solutions provider. “We’d look at the income statement and say, ‘We lost how much money?’ and then order a round of Budweisers. I go there as a last resort. For example, when installing a racing harness in a car, you need a specific grade of hardware to install it and nobody else carried them in town. Fastenal Company is an American company based in Winona, Minnesota. The idea for Fastenal was conceived by 11-year-old Robert (Bob) A. Kierlin. 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 company also targeted towns that had healthy manufacturing and construction industries, seeking to become those customers’ one-stop shop for fasteners and related parts. He rarely wore a tie to work and was known for his informal style, as well as a unique salary plan. As of today, Fastenal’s presence in Canada includes more than 1,500 employees, 250 in-market locations, 7,000 vending machines, and two regional distribution centers. © 2019 Encyclopedia.com | All rights reserved. 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. Someone suggested “Lightning Bolts,” but two of the founders were so opposed to the name that they threatened to take their money and leave. 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. Doing Well by Sticking to Nuts and Bolts,” Minneapolis Star Tribune, September 27, 1993. The men finally settled on Fastenal. McLeod, Reggie, “Fastenal’s Success Boon to Schools: Winona Firm’s Founders Aid Private Education,” Successful Business, August 29, 1989, Section 1, p. 30. Local source for millions of MRO, OEM, and Safety items. 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. de C.V.; Fastenal Mexico S. de R.L. needed. International Directory of Company Histories. Retrieved December 21, 2020 from Encyclopedia.com: https://www.encyclopedia.com/books/politics-and-business-magazines/fastenal-company. Most online reference entries and articles do not have page numbers. 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. We had them fax us the blueprint for the machine and we determined we could make it…. Fax: (812) 867-4261 Store operators were trained to find the answer to any question posed to them by a customer, as service was the centerpiece of the Fastenal strategy, and any parts that Fastenal employees couldn’t track down could be custom manufactured in the Winona plant. ——, “Fastenal Keeps on Growing, Making Life Tough for Short Sellers,” Minneapolis Star Tribune, November 3, 1997, p. 1D. Encyclopedia.com. Cookies are not used for the processing, collection or storage of personal data under any circumstances. New stores were added from the East Coast to the West Coast, and the company opened up a sixth distribution center. In many instances, Bob noted, the fastener simply couldn’t be found and the buyer would have to place a special order and wait. 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