Fastener Start Ups
Over the last decade there has been plenty of consolidation in our industry. We have seen ILS, Wurth, GE Supply and others gobble up competitors. There are also companies like Endries that have expanded greatly through methods other than acquisition. But, there still are a lot of small and mid sized distributors out there and I really don't see their numbers declining. There are plenty of companies that are run our of houses, barns, small "storage garage" type of facilities. I know where some of these companies evolve from. I have seen several develop when employees of larger companies see that their current employer is going through financial difficulties. The new entrepreneurs see that there only hope for survival is to open their own shop and continue to take care of their core of loyal customers. If costs are kept in check, some of these companies can make the owner a good living. I still see a lot of small distributors out "in the country" or, off the beaten path, taking care of farmers or some Amish customers or whatever. One thing I plan to keep an eye on is the number of start up companies that are started by ex-Fastenal employees. There cannot be another company in the industrial distribution industry that trains as many people as Fastenal. Sure, a lot of good people stay with the company but with all the branches there has got to be just a huge number of employees that think they can go off on their own and start up their own small distributorship. It will be intersting to see how many distributors are started by ex-Fastenal employees over the next 10 years.Hey, if you one of the above mentioned start ups, post a note and let us know how you are doing.
posted by Traveling Salesman @ 9:25 AM
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