Power Tool Industry June 2018
Robert Bosch Tool Corporation
Bosch Power Tools is partnering with Triax Technologies’ Spot-r system to allow construction firms to collect and monitor real-time worker, equipment and tool locations, asset utilization and safety data. The integration of Bosch’s Bluehound asset tracking solution with Spot-r will collect and transmit floor-and zone-based location information from tools and assets tagged with the Bluehound system. Triax says there is a lot of production time at the jobsite that is wasted tracking down tools and other equipment, people and information. Both Bosch and Triax are committed to growing the construction technology ecosystem. Spot-r delivers the information through a scalable mesh network, wearable devices, equipment sensors and a cloud-based dashboard.
Stanley Black & Decker
From the Wells Fargo Industrials Conference:
About three years ago they decided they needed to refocus the Stanley Fulfillment System, SFS 2.0, and reorient it to the digital transformation going on in the world, as well as make it more growth-oriented. Digital excellence is now at the center of the entire company.
They are now pursuing Industry 4.0, which is taking the digital technology of today and applying it to manufacturing as well as to the operational elements of the supply chain.
The first quarter was the 18th consecutive quarter where they met or beat their guidance.
They have done more than 100 acquisitions during the 19 years that CEO James Loree has been with the company.
About 200 Lowe’s stores will introduce the full line of Craftsman this year; the rest will convert as they go into 2019. They have worked diligently with Lowe’s to figure out how to merchandise and roll out in a way that is truly eye catching for the customer. They have been working with the planogram for the 1,000 products in the line and are very impressed. It should be clear to the customer that this Craftsman is different from legacy Craftsman.
FlexVolt continues to be a major driver of growth. Over time product introductions and innovations will enable job sites to be completely cordless. They are now exploring relationships with some of the Lawn & Garden OEMs to potentially work together to bring FlexVolt into Lawn & Garden. They have not yet mastered the challenge of matching or beating the price performance of gas-powered lawn and garden equipment.
The M&A market is quite pricey, so they are being careful. They expect to have some strategic options this year and will decide whether they want to do something in M&A or take that excess capital and buy back stock.
They see the home centers striving to have exclusive brands; Craftsman will be exclusive to Lowe’s in that channel, and Kobalt will be downsized.
Craftsman is the only brand in tools that cuts across all four markets: construction, DIY, industrial and automotive repair. Craftsman stands for value at a good price. They will not lose the identity of DeWalt for their high end professional brand, Mac Tools or Stanley, which will also have its place in DIY construction.
SB&D has three pilot facilities where they are testing smart factory initiatives, according to an interview CEO James Loree did with CEO magazine. They have reportedly been working on the smart factory concept for two years. An example would be putting sensors on equipment that tell you what is happening to the equipment in real time. For example, sensors can tell how many pieces or parts per hour it is producing, whether anything has changed about the state of the equipment, whether it is creating excess vibration, when it will need maintenance and even when it will fail and need to be replaced. Smart plants will change the skillsets needed in plants. They don’t expect to dramatically reduce head count but hope headcount needs will not grow at the same accelerated pace at which they have been growing. They are also going to need people with different skills, which are hard to find these days. They have hired experts with these skills to train workers.
SB&D’s long-term environmental sustainability goals have been approved by the Science Based Targets initiative, which is a collaboration between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature. The group consists of more than 100 of the world’s biggest companies that have now set targets through the Science Based Targets initiative. SB&D has committed to reducing Absolute Scope 1 and 2 Greenhouse Gas emissions 100% by 2030, using 2015 as the base year. They have also made other commitments. Across all sectors, more than 390 companies have committed to setting science-based targets; more than 100 now have approved targets.
Connecticut Public Television premiered an original documentary on the rise of Stanley Black & Decker, and its impact on the city of New Britain over the past 175 years. The show, called “The Toolbox of America,” also focuses on the Stanley family, and includes interviews with experts and industry insiders.
Q1 revenue rose 21.6% to $742.2 million and earnings per share beat analysts’ expectations. Buildings and Infrastructure revenue rose 20% to $224.7 million. Trimble expects second quarter revenue between $755 and $785 million.
Trimble is nearly done with their $4.5 million expansion of their dome in Dayton, Ohio that will allow for year-round
research and product testing and demonstrations that previously had to be done in good weather. Trimble has also built a 130,000-square-foot distribution center and a 3,000-square-foot corporate data center in the area.
Milwaukee Tool plans to begin construction soon on another large expansion of their Brookfield corporate campus, now that the project has received final city approvals. They expect the three-story, 114,500-square-foot global new product development center to be completed by May 2019. The center is across the road from the company’s newly expanded headquarters. The Brookfield Council approved providing $3.5 million to help finance the new center. The council also approved a $6 million grant to help finance the $33 million headquarters expansion that was completed last fall. Milwaukee also stands to gain up to $18 million in state income tax credits depending on the number of jobs it retains and creates at both facilities.
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