Power Tool Industry March 2018
Robert Bosch Tool Corporation
Robert Bosch bought Detroit-based ride-sharing service SPLT. Bosch believes travel to and from work is a “growth market”, part of a far-reaching shift in personal transport powered by the mobile internet. Bosch is creating a Connected Mobility division with more than 600 employees and believes that connectivity offers tremendous business potential.
Stanley Black & Decker
From the Barclays Industrial Select Conference:
They have invested a lot of time and money over the past four years to improve their digital capabilities.
They have ten teams around the world working on breakthrough innovations and expect to commercialize some of the concepts being developed in the future.
They are also focused on commercial excellence, which is basically continuous improvement for all customer-facing processes, whether that involves sales force deployment, brand development or customer experience.
They believe Lenox, Irwin and Craftsman will be drivers of organic growth for many years to come. They have done more than 100 acquisitions since CEO James Loree has been with the company.
Last year FlexVolt added $300 million organically and they expect it to be a growth driver as time goes on. They expect that ultimately the FlexVolt battery system will be able to run all power tools, including many tools that have never before been cordless.
They talked about their 22/22 vision, which is $22 billion in revenue by 2022. In order to achieve that they have to do about $5 billion to $7 billion in acquisition revenue, which they think they can do, as the pipeline is very strong. Their Craftsman acquisition opens up another $30 billion or so of companies that they might be interested in. There are small bolt-ons, medium-sized acquisitions and occasionally there may be a larger acquisition.
Their connected job site actually brings WiFi and software to job sites that allows many different functionalities that help with safety and efficiency. It has amazing potential, but it needs a dedicated team to maximize it. They have some innovations that are so “out there” they actually have a small group of people in Silicon Valley that are using an exponential organizational technique designed to try to scale and commercialize products and processes ten times faster than a traditional organization can do.
SB&D is expanding into new office space in Towson, Maryland now that more than $1 million in renovations have been completed at the landmark building that had been vacant for years. SB&D is leasing 6,600 square feet on the building’s top floor for a single division.
SB&D also plans to invest $8.5 million in a 92,000-square-foot building recently completed in White Marsh. The expansion will support 400 new jobs and bring the workforce in the state to 2,700. That includes 1,600 people at their 31-acre Global Tool and Storage Division headquarters in Towson, where they have more than 565,000 square feet of space. SB&D is getting a variety of incentives from the state.
DeWalt is providing lithium-ion batteries for Klein Tools’ new line of battery-operated tools for professionals, including a variety of cable cutters, crimpers and an impact wrench.
Milwaukee Electric Tool plans another expansion at their Brookfield, Wisconsin headquarters. The company would buy 3.5 acres adjacent to their Brookfield campus for a
114,500-square-foot office building that would create 350 jobs over five years. The new building would primarily house engineering and software development employees. There are currently 1,300 employees on the Brookfield campus, compared with 300 in 2011.
Revenue rose 21% for the fourth quarter to $708.4 million with Buildings and Infrastructure revenue up 18% to $209.6 million. For the full year, revenue was up 12% to $2.7 billion and Buildings and Infrastructure revenue rose 12% to $834.9 million.
Trimble acquired privately-held e-Builder, a provider of integrated, cloud-based construction program management software, for $500 million in cash. E-Builder manages more than $300 billion of construction project value and some 200,000 projects in North America. Some of their most high-profile customers include the New York Department of Transportation, the Port Authority of New York and New Jersey, Cumberland Farms and Northeastern University in Boston.
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