Fastenal Company is a North American leader in the wholesale distribution of industrial and construction supplies. The company operates through a network of in-market locations, including branches and Onsite locations. Fastenal's primary customers are in the manufacturing sector, encompassing both original equipment manufacturing (OEM) and maintenance, repair, and operations (MRO). The company also serves non-residential construction, reseller, transportation, and government customers. Fastenal's competitive advantage lies in its extensive in-market network, diverse product offerings, and integrated physical and virtual model.

• Employees: 23,201 (as of December 31, 2023)
• Geographic Footprint: 25 countries
• Headquarters: Winona, Minnesota
• Founded: 1967
• Number of locations/facilities: 3,419 in-market locations
• Revenue: $7.35 billion (FY2023)
• Key Subsidiaries/Brands: FASTCO Trading Co., Ltd., Body Guard®, ORMADUS®, Holo-Krome®, Cardinal Fasteners®, and Spensall®

• CEO: Daniel L. Florness
• CFO: Holden Lewis
• Executive Vice President - Operations: Anthony P. Broersma
• Executive Vice President - Sales: William J. Drazkowski
• Executive Vice President - Manufacturing: James C. Jansen
• Executive Vice President - Human Resources: Noelle J. Oas
• Senior Executive Vice President - Information Technology: John L. Soderberg
• Chief Sales Officer: Jeffery M. Watts

The leadership team has extensive experience in various aspects of the business.

• Annual Revenue: $7.35 billion (FY2023)
• Net Income: $1.16 billion
• Total Assets: $4.46 billion
• Key Financial Highlights: Daily sales increased by 5.7% year-over-year. Gross profit was $3.35 billion, representing 45.7% of net sales. Net earnings per diluted share was $2.02.

Fastenal offers a broad range of industrial and construction supplies.

• Fasteners: Threaded fasteners, bolts, nuts, screws, studs, and related washers.
• Safety Supplies: A wide array of safety equipment and products.
• Other Product Lines: Includes tools, janitorial supplies, cutting tools, and other industrial and construction products.

Fastenal operates as a single business segment. However, the company tracks revenue by customer type and product line.

• Manufacturing Customers: Approximately 70-75% of revenue.
• Non-Manufacturing Customers: Approximately 25-30% of revenue.

Fastenal's strategy is focused on growth through customer service, innovation, and a high-touch, high-tech approach. Key initiatives include:

• Expanding Onsite locations to provide dedicated service to single customers.
• Growing the installed base of Fastenal Managed Inventory (FMI) devices.
• Increasing sales through the Digital Footprint, including e-commerce and digital visibility tools.
• Focusing on national account customers to increase market share.
• Expanding international operations.

The company aims to provide a differentiated and 'sticky' service that is difficult for competitors to replicate.

Fastenal operates in the highly competitive industrial distribution market. Key aspects of the industry include:

• Market Position: A leader in North American wholesale distribution.
• Key Competitors: Large national distributors and smaller regional or local distributors.
• Industry Trends: Consolidation among distributors and suppliers, increasing adoption of e-commerce, and a focus on supply chain efficiency.

• Operational Risks: Potential liability from product use, interruptions in information systems, and inability to protect intellectual property.
• Market Risks: Changes in customer mix, downward pressure on sales prices, and changes in order volumes.
• Financial Risks: Fluctuations in gross profit percentage, ability to manage operating expenses, and changes in interest rates.
• Cybersecurity Risks: Potential for security incidents, data breaches, and violations of data privacy laws.
• Supply Chain Risks: Dependence on overseas suppliers, potential disruptions in the supply chain, and changes in trade policies.