Robert Bosch Tool Corporation
Bosch’s asset tracking IoT solution dubbed TRACI is being used to digitalize construction sites and help fleet operators track and deploy vehicles as efficiently as possible on huge construction sites. Productivity growth is substantially lower in the construction industry than in other industries, according to Contify Automotive News, and TRACI can improve how machinery is used as well as speed up the process of materials distribution. The digitalization of the construction industry is viewed by many industry experts and analysts as the key to attracting a more tech-savvy workforce and improving the productivity and profitability of the sector.
Stanley Black & Decker
SB&D welcomed almost 200 auto enthusiasts and tool aficionados to Baltimore in August for the relaunch of the Craftsman tools brand. The festivities included rolling out a lineup of more than 1,200 new products. Former Washington Redskins head coach Joe Gibbs and Richard Rawlings, the star of Discovery Channel’s Fast N’ Loud, were among those sharing stories of how they grew up using Craftsman tools. The three-day launch event began with a dinner Wednesday night. Allison Nicolaidis, chief marketing officer for global tools and storage, welcomed the trade publication writers, bloggers and Youtube “do-it-yourself” video stars to Baltimore by calling it the “new home of Craftsman”. Thursday people had a hands-on experience at Craftsman headquarters, dubbed “The Garage” so people could try out all the tools, which included light-weight cordless drills and a gas-powered lawn mower with a push-button start. After The Garage, people went to the Autobahn Indoor Speedway to race with Joe Gibbs and check out more tools. The evening featured a tour of the city with dinner at Nick’s Fish House. The event concluded with a breakfast with automobile designer Chip Foose, star of a TV show on Velocity.
The iconic Craftsman logo has not been redesigned and will remain as is because of its massive brand recognition, according to Gregory Pizzi, group creative manager for Craftsman.
SB&D has doubled their space at the recently renovated downtown Towson, Maryland office building, signing another full-floor lease at the five-story property.
SB&D is paying $690 million for International Equipment Solutions Attachments Group, a manufacturer of heavy equipment attachment tools. IES Attachments’ brands include Paladin, which makes excavators, wheel loaders, tractors and truck chassis; Genesis, which makes specialty attachments for the scrap processing, demolition, material handling and decommissioning industries; and Pengo, a manufacturer of augers and related parts for the utility, construction and agriculture markets. IES Attachments will be integrated into SB&Ds hydraulic tools business in the industrial segment.
SB&D awarded their $25,000 VentureClash Innovation Prize to DOZR, a company that has created a new market place for the rental of heavy equipment. VentureClash is managed by Connecticut Innovations. The DOZR platform enables business owners to earn additional revenue from idle equipment and allows contractors to rent equipment at lower rates than traditional rental companies. The finals event in October will be held at the Yale School of Management and feature ten finalists.
From their Half Year 2018 Conference Call:
First half revenue grew 19.1% to USD $3.4 billion. Milwaukee revenue grew 29.8%; it was Milwaukee’s eighth consecutive reporting period of growth.
The Power Equipment division represented 86.4% of revenue, led by Milwaukee. Ryobi’s global organic growth rose 20.1%.
They attributed the sales increase to new cordless products, which grew 45% over the last year as well as sales of legacy corded products.
North America represents 76% of the group’s revenue, and grew 18.1%. Europe now accounts for 16.2% of revenue.
During the reporting period they increased their R&D spending by 20 basis points to 2.9% of the group’s revenue, with particular emphasis on Milwaukee, as they try to position themselves as the leader in cordless technology.
They strategically carried a slightly higher inventory level to support strong sales growth.
They believe Milwaukee top line sales will grow 20% a year even though the base is very large, and they do not plan to make any acquisitions. They also expect gross margins to continue to improve.
They pointed out that while they do manufacture in China, so do all of their competitors, so everyone has to deal with the impact of tariffs. They also believe that any trade war will be a big advantage for them, because they have tremendous flexibility built into their systems.
They have six factories in the US. They have also opened up a new Vietnamese manufacturing operation and have two manufacturing facilities in Europe. They plan an accelerated ramp-up within the US and in low-cost countries such as Vietnam in order to counter the effects of the potential trade war tariffs as well as rising costs in China, where most of their products are currently manufactured.
They have hired an extraordinary number of engineers from top schools and wish they could have hired even more. In R&D they are hiring software development engineers in addition to manufacturing and electrical engineers.
New home construction is only about 7% of their future projections. They also focus on 26 other vertical markets, many of which they believe are much more exciting and have much more potential than home building.
TTI claims that their brands are market leaders, and that Ryobi is the number one brand in the world for DIY tools and Milwaukee professional cordless is now number one in the US, Canada, Australia and New Zealand.
They will hire 530 college graduates this year, about 100 of them outside of the US and Canada, not counting the engineers. The target for engineers is 100 global hires.
Their Canadian operation was described as their “crown jewel.” There are no tariffs to deal with and they are number one in the market. The US is also growing, but not as fast as Canada and Europe.
They are converting Verizon’s legacy brand of tools to 100% Milwaukee, all cordless, which they described as a major deal. They have also converted San Diego Gas & Electrics entire fleet to Milwaukee from “their enemy,” which is how they consistently described competitors. They gave several other examples of global conversions to Milwaukee cordless.
CEO Joe Galli highlighted what he called both the most important developments ever in power tool cordless technology, and also their catalyst for growth for well beyond five years.
First was the roll out of their third-generation of brushless motor impact drivers. The third generation features 18-volt products that are smaller, lighter, faster and more powerful, with faster charge times, more features and the ability to run with less heat. They likened their generational development approach to Apple iPhones and said they plan to continue to launch new generations of tools.
The second major breakthrough they are launching is five new tools that can replace continuous run time corded tools or gas or hydraulic or pneumatic tools. The 12-amp battery is the first ever, and it is a very sophisticated device with highly advanced software and electronics inside.
People think they are a power tool company, but they are a technology company that happens to sell power tools and floor care.
They highlighted several of the tools, including reciprocating and circular saws, chainsaws and large angle grinders.
The fastest growing market in cordless is subcompact, people want smaller, lighter and more ergonomic products.
Many customers enter their system when they buy their Milwaukee heated jacket line, which they referred to as a Trojan horse, because the jacket’s battery works in 50 other tools, and will eventually work in 250 other tools.
The DIY market is about one-sixth the size of the professional market, and is not growing nearly as fast. But Ryobi is posting very strong results thanks to the Ryobi ONE+ 18-volt system which offers fully compatible tools that all run on the same battery, including the Ryobi stick vac.
They are growing faster organically than their competitors are growing with acquisitions, adding $2 billion to $3 billion every year in additional value.
Q2 revenues rose 19% to $785.5 million. Buildings and infrastructure revenue was up 24% to $274.3 million. According to CEO Steven Berglund, second quarter revenue and income exceeded expectations.
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