TS: I do not know if there is a company making more news than AFC. In the last few months you have completed four acquisitions, and we are not talking about little mom & pop operations. The growth rate of AFC is impressive. What is going on with AFC??
Kevin: As you know, there are so many great companies in the industry. We have been fortunate that we were a good fit for several who were either looking for a partner to help them move their business forward or provide a stable transition plan where they knew their customers and employees would be treated well.
AFC has a good organic growth rate, but acquisitions remain an important part of our strategy. We continue to see consolidation of customers as well as competitors and if we can address strategic needs by acquiring businesses that have successfully developed target capabilities or markets then we think it makes sense to do that.
I guess that is a long-winded way of saying we are having fun and working hard to build a great company. Acquisitions just happen to be more visible than the other things we do.
TS: Is there an end game or goal? Does AFC have a specific dollar amount or some target you are trying to attain?
Kevin: I suppose that depends upon who you ask. We have several different stakeholders that each are looking for different things from the business. Part of my job is to balance all of that. There are certainly investment objectives and when those are met the investors will exit, but those are just one factor in what we do. We are confident that ultimately the investors will get their best returns if we do what is right for the business.
So no, we do not have a specific number we are trying to hit. Our goal is to continually focus on those things we believe will allow us to build the best business possible. If we do that then it will create value for investors and customers, opportunities for our employees and suppliers, and provide management with the flexibility to adjust as needed to changing needs in the business.
TS: And, in addition to the business acquisitions you have recruited several industry veterans and you are assembling a strong management team.
Kevin: I am glad you asked about that. The thing I am most proud of at AFC is our team. The first thing I did when I got here was recruit a team of experienced professionals who knew this industry and were excited about our vision. We have continued to add to that as we have grown.
The thing I probably think about, worry about, and focus on the most is the culture and capabilities of our management team. It is critical that we have experienced, smart, high-integrity, people running the business. Much of our success is because we have good strategic alignment without stifling bueracracy, and that is possible because our team understands the industry.
TS: One last AFC question. Although private equity is involved it seems like your companies are retaining and being run by “fastener people”. Is that the strategy?
Kevin: Our P.E. investors are excellent at what they do and what they do is very important to our success, but they are not operators, they are investors. It is our responsibility to run the business. If we are doing what we are supposed to do they shouldn’t need to be involved in running the operation.
TS: Now, I knew you before you became the CEO of AFC but for those readers who are not familiar can you share your fastener background? Where did is start and what have been the stops along the way to becoming the CEO of AFC?
Kevin: I began working at 13, so there were a lot of stops and I learned valuable lessons from each of them that I still use. Prior to joining the industry, I had various production, machining, and quality jobs eventually working my way up to materials and operations management. A couple of those stops included helping to manage large reorganization projects. I was recruited to General Fasteners Company to help with some restructuring projects they were considering. That was my introduction to the industry. I originally planned to be here about a year or two and that was 17 years ago!
I believe you and I first met when I was working with the purchasing group at GFC. Those initial projects were successful, and they asked me to stick around. I did and eventually became the president and CEO of the company. There are lots of great people at GFC and I really enjoyed my time there. You spoke earlier of industry veterans and at GFC I was able to work with several of them that broadened my perspective on value creation and the role distribution can play in the manufacturing supply chain.
I was at GFC until late 2015 when I left to take the position at AFC Industries.
TS: And, I think it is important to point out that you are the current President of the NFDA. You are making time to give back to that organization. What news do you have to share with us about what is going on with the NFDA?
Kevin: We are very excited about the future at NFDA. We have always offered several benefits such as access to data and benchmarking reports as well as discount programs and things like that, but the events and networking opportunities were a unique part of the value for NFDA members. Obviously, COVID made that more difficult, but the team worked really hard to develop content and provide networking opportunities that can be delivered virtually.
In a sense, the pandemic forced an acceleration of things we were already working on and we have had great feedback from those events like the roundtables and virtual meetings. That just opened our toolbox even further and we will continue to look for opportunities to provide those kinds of opportunities, but we also recognize that in-person meetings still offer unique value and so we are excited to resume onsite meetings this year. We have the ESPS meetings coming up in Minneapolis as well as the executive summit in Florida later in the year, etc. The more opportunities we have to facilitate interaction between industry leaders the more value we can provide.
Another thing that I am really excited about is our partnership with the Young Fastener Professionals (YFP) group. There are few, if any, issues more important than the recruitment, retention, and development of the talent our companies need to remain competitive in the coming years.
YFP is a group of bright energetic folks who are the future of our industry, and we want to use our platform at NFDA to help extend their engagement of talented people who are earlier in their career or new to the industry. I think we all benefit by expanding the role of the association from being a resource primarily for owners and executives to providing support for the next generation of leaders as well.
TS: Clearly, AFC is in acquisition mode but you are not alone. The fastener industry is seeing a lot of mergers and acquisitions both on the distribution side as well as the supplier side. I’d like to hear your thoughts about where the industry is heading.
Kevin: Barring some sort of major disruption, I think that is likely to continue for some time. Several factors are contributing to this being an attractive market for acquisitions.
As the largest manufacturers get more sophisticated, they are looking for suppliers that have the scale, technology, and geography to support them. The investments and purchasing power required to push their requirements down the supply chain are difficult for smaller businesses to make.
There is also a lot of pent-up capital waiting to be deployed in the investment markets, particularly for private equity. For several reasons the businesses in this space are increasingly attractive to private equity investors as they are looking to put that money to work. This pushes up valuations in the market for other buyers as well and makes selling a business attractive to a broader number of owners.
Because of these reasons and several others we could discuss, I think we will see continued consolidation and it will be increasingly difficult for localized players to compete for larger customers in the long run.
TS: I hope next year I am not asking this question when doing interviews but I want to ask how supply chain issues are affecting AFC. I know everyone in our industry is experiencing challenges but how challenging has it been with AFC and recognizing that, to some degree, you still run as individual businesses?
Kevin: As you said, everyone is facing the same challenges. It takes time, but we are working to integrate those supply functions. We know which supply partners have supported us across the divisions and which still have some work in that area. Although in many cases we are issuing releases locally, the supply chain team coordinates efforts to ensure we don’t have disruptions. So, I don’t think our structure has been an advantage or a disadvantage regarding the supply chain shortages, although we continue to work on further integration.
TS: Finally, let’s finish up with some personal questions? Are you still enjoying yourself? Still having fun with this crazy fastener industry?
Kevin: Absolutely! Everyday I have the opportunity to learn something new and work with amazing people who are passionate about what they do.
TS: And what else do you want to accomplish in the coming years?
Kevin: Tomorrow isn’t promised to any of us. I just want to be faithful in whatever God brings my way and do whatever it is to the best of my ability. If I can do that and help others to be successful along the way I know I won’t have any regrets.
Category Archives: Uncategorized
10 Minutes with Lyndon Lattie, SmartCert
TS: What is SmartCert and how does it help people in the fastener industry?
Lyndon: SmartCert is a cloud based, subscription platform that helps companies automate and take control of inbound and outbound certs. It was designed and built by the industry, for the industry. I spent 20 years watching required traceability documents hold up the works for suppliers, processors, manufacturers- all the way up to the OEM level. Perfect parts, sitting on a quarantine shelf, waiting for the paperwork to catch up with the shipment. Talk about the dime holding up the dollar! We built SmartCert to solve this problem and become the standard for sharing certs in the fastener supply chain, and beyond.
TS: Does SmartCert work within QMS and ERP systems, or is it a standalone product?
Lyndon: It’s both! The SmartCert platform stands on its own and also plays well with others. We have partnered with INxSQL to provide SmartCert functionality with enhanced automation to their customers. We have also integrated SmartCert into other systems and created a linking system that connects a part or customer to the associated cert package in SmartCert without the need for integration. Companies gain a lot of process efficiency regardless of how it’s used.
TS: Is it particularly beneficial for companies certified in ISO or AS?
Lyndon: Yes, it provides excellent management and visibility of cert packages for your entire organization. SmartCert is beneficial for any company that has product that requires certs, docs, and traceability. It is designed to help small garage operations all the way to giant OEMs.
TS: How did you get involved in SmartCert, and what is your background?
Lyndon: I have been in the fastener supply chain for 20 years, and I got my start in Detroit at a company owned by Ed Palm called Spiralock. We were bought by Black and Decker, then Stanley, then became Emhart. Since then, I’ve been primarily in sales for both manufacturing and distribution of fasteners. It was watching deals and relationships go sideways because of missing, lost or slow cert packages that I finally decided we, as an industry deserved better. So, I found the smartest folks I could find, and we built SmartCert.
TS: Where will the growth of SmartCert come from?
Lydon: Both through the user network and product rollout. First, the network effect has been amazing. Most of our customers want their customers to know their product is now powered by SmartCert, but they really want their vendors to start sending their cert packages via SmartCert. When this happens, the required documents automatically populate in your dashboard. Those are HUGE efficiency gains for the entire network of customers and vendors. Second, like your watch, phone, and some cars, we are constantly evolving. In fact, we are already working on SmartCert 1.5, updated security features for docs requiring ITAR protocol and IP issues (drawings, PPAPs), even document processing in the platform. We are just getting started!
TS: I spoke with you at the NCFA Social and it’s clear you are “all in” with SmartCert. Where do you see the company going and where do you see the fastener industry going that makes you excited about bringing this product to market?
Lydon: We really are all in. We launched in March of 2021, are close to 8,000 docs managed to date and adding customers all the time. It’s our mission to become the standard for cert transfer and management in the industry. We are proud to meet our customers where they are at, with tools they already have (internet, computers, mobile devices, label printers) to streamline their inbound, internal, and outbound processes as a partner in their digital transformation.
Even the leaders in our industry are making moves towards digital automation. SmartCert, and our parent company Aramid Technologies, is a partner in helping our industry make that transition with people who have walked in their shoes. We could not be more excited about what’s ahead. This cert problem is not unique to fasteners. We are also getting traction for SmartCert in the chemical, oil and gas, medical device, food, and automotive industries. Anywhere paperwork is causing bottleneck, we’ll be there to help!
10 Minutes with Baron Yarborough, Spring Bolt & Nut
TS: OK, so I’ve seen that you are now the Chairman and Executive Director of the Southwest Fastener Association. You were once the leader of the Young Fastener Professionals organization. And a couple years ago you were chosen as the Young Fastener Professional of the year and honored at the Vegas Show. And, you are still kind of a young guy in this industry, at least compared to me! So, I think it is about time we find out a little more about the “The Bearded Nut”, as you are known in the Twitter world. You ready for this?
Baron: Let’s do it!
TS: Most importantly, when is the last photo you have when you were without your distinctive long red beard?
Baron: My distinctive beard has slowly been getting long since I joined the industry. I think the last time there is record of me clean shaven would be my yearbook photo from my sophomore year of high school. I grew a goatee that year and it has been spreading ever since.
TS: Now, back to fasteners. How did you first get involved in the industry and how long have you been doing this?
Baron: My father and grandfather both worked for LFC in Arlington, Texas and then for Interstate Thread Products. I guess I was kind of born into the industry as I was around it my whole life. I grew up going to ITP Christmas lunches, holiday parties, etc. so I was familiar with the business. After college, I married my college sweetheart and got a job managing an inside sales team for a data company. My father-in-law was also in the fastener business and was a partner at Spring Bolt. When one of the Spring Bolt co-owners, Tim Malone, decided to retire my father-in-law wanted to bring on a sales guy to grow the business. He knew I was familiar with the industry and that I had managed a sales department with the data company so when he approached me about the position I knew it was time to jump into the fastener field. I started working at Spring Bolt in 2015
TS: What distinguishes Spring Bolt from other companies that do similar products.
Baron: A few things. The big one would be material knowledge; how to machine, heat treat, forge types of materials most people would have trouble with. Most exotic metals require heat treating and testing after you form and or machine them.
I would be remiss if I did not also mention lead time. About 30% of Spring Bolt’s business is rush orders. Our average lead time is 4 weeks, but on these rush orders the lead time usually ranges from one week to 1 hour depending on the customer’s needs.
TS: Talk a little bit about the oil and gas market. It is almost as distinct as the automotive industry is up in the Detroit area. At times, oil and gas seems like its own distinct industry niche yet products you make for the industry can be used in other industries.
Baron: The Oil patch is an industry of feast or famine. Depending on a lot of factors, political, environmental, both locally and globally. Right now, it is starting to pick back up.
One reason why you see crossover in parts is because there is crossover in who wrote the specs SAE or ASTM. For example, because of my geography I had to become an expert at ASTM A453 660B, but that means with just a few more steps I could become an expert at AMS-5732 A286. These two items are made up of the same elements and are heat treated the same way. In most ways they are identical if you know what you are doing. Because of instances like this we have been able to market ourselves across the nation instead of just across Houston.
TS: What are your professional aspirations? You have a whole lot of years left in this industry, what do you envision for yourself in the coming years?
Baron: To be “the most electrifying man in” the fastener industry. In all seriousness to make this a better industry. While heading up YFP I focused on training managers and really any fastener pro that would listen on how to retain young talent. And despite what some people tell you its not all about the money. Is it a factor? Hell yeah it is! But is it the driving force of the mass exodus so many industrial industries are seeing? No. They don’t feel heard, they are told to stay in their place while they are trying to work to get a spot at the table. You can buy younger talent with your wallet or with your actions, its up to you.
Well that was a bit of a soup box. At the end of the day I plan to make everything I associate with the best it can be, that means the industry, the company, and the associations.
TS: In the intro to this interview I mentioned your participation in the fastener industry associations. You have embraced participation and I think that has helped you to meet a lot of people more rapidly than a lot of younger people in the industry.
Baron: Associations are just like most things in this world, what you put in is what you get out. I have a tendency of jumping in feet first into things and the SFA is no exception.
TS: What is something about the industry that you observe that a guy my age does not?
Baron: I do not know if this is age specific. It falls under that “We’ve Always Done It This Way” quote. The industry has a habit of calling order-takers salespeople. I am not saying there is not a place for order-takers in the industry, they are certainly important. But if you are not actively hunting for accounts or actively growing accounts in some way, you are not in sales.
TS: You are very active at trade shows and often represent Spring Bolt at the shows. What are some of your observations about “fastener people”?
Baron: I don’t think I can add much that has not already been said by most people in the industry. Fastener people are the best, work hard play hard type people, and every other cliché you can think up when describing an industry of high functioning alcoholics, 😊 myself included. In all sincerity, I could not see myself in any other industry. There is a reason I use the hashtag #fastenerfamily and it is because that is exactly what this industry is.. a big ol’ family
TS: You’ve been doing this for a while now even though you are a younger guy. What changes in the industry have you noticed and what changes do you anticipate?
Baron: There are more companies in the industry that are starting to embrace the internet of things. Not just posting on social media but innovating their companies by utilizing the web. There for a while companies like Earnest Machine were a bit of an outlier. I’m glad to see they no longer have to carry the torch of technology by themselves.
In the future I would expect to see more companies like Initialize pop up. Companies that are the “Secondary Processors” of the intangible 21st Century.
Note from TS:
I have a regular column in Fastener Technology International (FTI) magazine, called 10 Minutes with the Traveling Salesman, which can be read online at www.fastenertech.com. Subscriptions to FTI, print and digital editions, are free-of-charge for fastener manufacturers, distributors and users as well as suppliers to the industry.”
Fastener Hall of Fame – Nominations Now Being Accepted
Who Has Made a Significant Contribution to the Fastener Industry?
2022 marks the 40th anniversary of the Fastener Hall of Fame, which recognizes professionals who have made significant and enduring contributions to the industrial fastener industry on a national or global scale.
As part of the annual International Fastener Expo, the Hall of Fame inductees are selected from names submitted by people like you.
Now is the time for you to nominate someone you think has made a difference to the industry, through leadership, innovation, and education.
The process is simple: visit https://fastenershows.com/awards-events-page/hall-of-fame/ to submit your nomination online. The deadline this year to submit nominations is July 30.
All nominations are reviewed and evaluated by the Board of Directors of the Fastener Industry Coalition, an organization comprised of representatives from thirteen regional and national fastener industry nonprofit associations.
Marty Nolan of R.L. English, the current chair of the Fastener Industry Coalition, says, “When making nominations, remember that the team that reviews submissions may not be as familiar with the individuals as you are, so please be sure to include details that tell the nominee’s story and how they have made an impact on the fastener industry.”
Young Fastener Professional of the Year
Since 2016, the International Fastener Expo also has recognized a young professional (age 40 and under) who has made significant contributions to fastener industry.
Please also consider nominating someone who is a rising star in the fastener industry for their achievements and potential. Visit https://fastenershows.com/awards-events-page/young-fastener-professional-award/ to submit your nomination by July 30.
History
Mike McGuire and Jim Bannister, producers of the National Industrial Fastener Show, started the Fastener Hall of Fame in 1982. Mike and Jim would consult with industry associates to select the inductees each year.
When Mike and Jim sold their tradeshow to Emerald Expositions, Emerald carried on the Hall of Fame tradition, asking the Fastener Industry Coalition to manage and administer the selection process for inductees.
10 Minutes with Matt Delawder, SWD, Inc.
TS: Might be the most simple question I ask and a lot of other people might already know, but, what does SWD stand for?
Matt: This is one of the most frequent questions we get. SWD Inc. was founded in 1980 by the original partners Stefan, Williams and Delawder. (S.W.D.) A year later in 1981 one of the partners wanted out and my father decided to buy out both partners. At this point my father is still on the board, but it is myself and my two brothers that run SWD with the help of our entire staff.
TS: Tell me more about the company. I enjoy hearing about family run businesses.
Matt: My brother Rick has been the president of SWD for the past 16 years and my brother Tim is the VP of Operations. Each of us would work at SWD after school and during the summer. I think I started working there when I was about 12 or 13 by mowing the lawn or cleaning. During college it was nice to work during the holidays and summer to earn a little spending money for school. I don’t think any of us thought this would be our career, but after college each of us came into the family business. In 1998 our father asked us each to become business partners and we haven’t looked back. We now have my nephew working with us as the first 3rd generation member of the family and we hope other family members will join in the future if they are interested.
TS: Coatings are a heavy regulated business. What are the biggest challenges you face in trying meet regulatory requirements?
Matt: We are constantly doing everything we can to exceed the environmental regulations put on our industry. SWD was the first metal finisher in the country to be ISO 14001 certified back in 1998 and we are a founding member of the EPA Strategic Goals Program. We recognize the importance of sustainability and continually look at ways to reduce and reuse throughout our operation. Our biggest challenge is to stay on the forefront of the ever changing global and national requirements and finding the best technology to meet and exceed new and existing standards.
TS: As with fasteners or anything else, everyone likes bigger orders. But how do you balance the large runs and times when your good customers need smaller runs?
Matt: This year more than ever we have seen smaller production runs as lot sizes have been smaller due to supply constraints. We have had to change the way we process parts in order to better accommodate what our customers need and when they need it. Whether we are coating or sorting and packaging an order, we are the last operation that is required. Quite often any lead-time that was built into the schedule is gone. We understand the pressure that our customers are feeling and try to help rush parts through our system no matter the size of the order. This can cause other issues of pushing orders that had previously been scheduled. We continue to adjust our production schedules and remain flexible.
TS: Business is brisk in 2021 for a lot of fastener companies. Is it the same for platers and coaters?
Matt: 2021 has been our busiest year on record. Even though we process a large number of parts for the automotive sector, which has been down by more than 30%, other areas have seen significant growth leading SWD to process a record number of orders.
TS: How long do you see this uptick in business lasting?
Matt: We have been talking to our customers over the past couple of months trying to determine our budget for 2022 and nearly every sector we deal with is projecting growth into 2023. The housing market is projected to remain strong, which bodes well for the construction and appliance markets. With the new Infrastructure Bill being passed, the heavy equipment sector is on track to remain at record levels. Our automotive customers are starting to see an increase in business that started in the fourth quarter and due to strong demand many are optimistic that production levels will get back to what they had seen in 2019.
TS: Is your company facing challenges in getting raw materials to work with or is the physical process of doing the coating more of a challenge?
Matt: Since the beginning of the pandemic we have been closely monitoring our supply chain for any issues and worked closely with our suppliers for any potential disruptions. Thankfully we have not seen any major shortages, however we have seen significant price increases on nearly all of our key inputs from energy and chemicals to packaging supplies and wages.
TS: What differentiates SWD from other coaters?
Matt: We are a family owned business and our team truly cares about our customers. We do a customer satisfaction survey every two years and last year we had a couple of responses that stood out to me. When asked: In your own words what is it about working with SWD that you value most? One customer said,” Customer Service, a willingness to listen and solve and avoid problems.” Another said it more concisely,” Good people who care.” We are always trying to find ways to give our customers a competitive edge, but it really comes down to the fact that every customer and every part is important.
TS: You were the President of the MWFA for a number of years and you are still very active in the association activities. How has that been beneficial to yourself and to SWD?
Matt: One of the most important things that my father instilled in my brothers and myself is our duty to be involved in both our community and our industry. If you want to make a change for the good, it is your responsibility to do so. My brother Rick has been the president of the Chicago Metal Finishers Institute as well as the president of the National Association of Surface Finishers. My brother Tim is a past chairman of the Addison Chamber of Commerce and Industry. I am a past president and assistant governor of Rotary international, past chair of the IFI Associate Supplier Division and I currently serve on the Board of Directors of the MWFA. I would suggest that each organization I have been affiliated with has helped me better understand different nuances within this industry and business as a whole. I have the chance to network with leaders from multimillion dollar companies and in many cases have gained close friends because of each of these associations.
TS: As long as platings and coatings have been put on fasteners it is sometimes surprising how frequently we seem to see OEM’s requesting new coatings. Is that the nature of your business? Should we always expect to see new and improved products?
Matt: Many of the coatings used in the fastener industry have been around over a hundred years and are proven to be cost effective and efficient at combating corrosion. However new environmental regulations may cause a change like what occurred with zinc electroplating and hexavalent chrome about 20 years ago. I would suggest that the real driver of change is a more advanced coating material or application method has been developed. The new coating may be thinner, reduce the chance of hydrogen embrittlement, have better corrosion resistance or any number of properties that make it more desirable as a finish. We continually talk to our partners about new materials or technology that is being developed to better meet our customer’s and ultimately the end user’s needs.
Note from TS:
I have a regular column in Fastener Technology International (FTI) magazine, called 10 Minutes with the Traveling Salesman, which can be read online at www.fastenertech.com. Subscriptions to FTI, print and digital editions, are free-of-charge for fastener manufacturers, distributors and users as well as suppliers to the industry.”
Consolidation in High Gear
When I receive my copy of Fastener Technology International I usually turn immediately to the Fastener Focus section and look for my most current 10 Minute interview. This edition it was an interview with Dan Hill, CEO, Wurth Industry North America, Executive VP, Wurth Group. I cannot thank Dan enough for taking time to do the interview.
However, this time as I skipped along the pages I kept running into a similar theme, industry consolidation. Here’s a sampling of what I saw:
Bufab Agrees to Acquire Component Solutions Group
White Cap Acquires Tri-Supply & Equipment
LISI Aerospace Acquires B&E Manufacturing
Martin Fastening Acquires Capital Bolt & Screw
Falcon Acquisition Enhances Trifast N. American Footprint
Clarendon Specialty Fasteners Acquires Aircraft Hardware West
S.W. Anderson Acquires M.E. Martin
LindFast Acquires Solution Industries
……..all of those appeared in the Fastener Focus section BEFORE I got to my interview with Dan.
Since then, Brighton Best International acquired Vertex. Yesterday or today I saw where B&F Fastener Supply acquired Mid States Specialty out of Moline, Illinois.
And, pretty much every company that is not selling these days has the ambition to double its size in the next 3 or 4 or 5 years. As much activity as there has been we have not seen the end of this. And money is so cheap right now. Everybody has their foot on the gas pedal.
Between supply chain issues, Covid concerns, consolidation, and other stuff I’m probably neglecting to mention, 2021 has been one of the most interesting years in the fastener industry I can remember. Lots to talk about at the Fastener Fair Show in Cleveland next month. If you are in town the Monday night before the show please join the NCFA down at Punch Bowl Social in the Flats. Things starting around 6:00. Also, Elgin Fasteners is opening up the doors of its Telefast Division for tours starting at 2:00 p.m. on that same Monday, November 8. You’ll get a firsthand view of nut manufacturing. See you there and I suspect there could be more news developing between now and then.
10 Minutes with Dan Hill, CEO, Würth Industry North America, Executive Vice President, Würth Group
TS: Okay, I have read a few interviews with you in the past year, so I am taking this as a challenge to take a different approach to talk with you. That said, if I ask you something too crazy, feel free to plead the 5th or skip past the question. At the same time, I plan to have a little fun. So, you ready?
Dan Hill: Thanks TS, I appreciate the time and opportunity to speak with you.
TS: I’ll jump right into the recent data that I read in Fastener News Report, where Würth shared that they saw “double-digit sales growth” in the first half of 2021. I think the actual number they printed was 22.6% growth over the same period from the previous year. For our industry, the numbers are kind of staggering.
DH: Yes, right at 17% growth for H1, and if you exclude our PPE division that had record-setting 2020 COVID impacted results, it’s more like 36% growth this year! They are staggering, we are seeing a lot of our customers producing at rates well beyond their production plans for 2021, and we are working diligently to support them. We’ve had growth in nearly all of our divisions, with industrial and construction seeing the highest sales growth rate. However, this didn’t happen overnight—this is the result of a lot of hard work from everyone across our business, better service to our customers, expanding product offerings, and providing a secure supply chain to support our customers’ growth.
TS: How big can Würth grow? Maybe more specifically, how much larger can WINA grow?
DH: The Würth Group recently surpassed an exciting milestone, reaching 81,000 employees throughout its 400 companies in 80 countries. And at a WINA level, in the past two years, amid the pandemic, we have made four acquisitions, growing the business by $163 million, and launched a new start-up business, Würth Additive Group, to expand our 3D printing products and services. We focus on growth through acquisition, finding companies who will be the best fit, and providing the best product and service expansion for our customers. The goal is to double by 2025. Our growth future is certainly bright.
TS: I have heard industry people say stuff like, “in the end, Amazon will own everything.” That may or may not be the case, but consolidation is taking place in the fastener and industrial marketplace. So, what will all this look like in five or ten years? Is it going to be a half dozen big players left? Will everything be sold to private equity, and the fastener names be pushed aside? What do you see?
DH: The consolidation of companies will undoubtedly continue, and not just in our marketplace, but across most industries, because the customer demands global solutions, a secure supply chain, and local sales support. That’s not something a mom-and-pop operation can provide. But just focusing on our business compared to Amazon, we don’t just sell fasteners; we provide vendor-managed inventory solutions, that’s not something that Amazon does. And when you look at our Safety/MRO/Metalworking business, we see tremendous growth in service solutions like Safety Check, offering a safety analysis for factories, or our newly expanded custom boot and safety eyeglass program. This service is what the customer requires, and it’s not something Amazon is going to provide.
TS: You have had a few different positions that, while not specifically fastener related, did put you in a position to take on your current role with Würth. For those who might have missed reading your other interviews, please share the stepping stones of your career. And, feel free to share your hot dog cart history for those who have not heard about that phase of your career path.
DH: I think the hot dog cart part is the part people really enjoy, but I’ll give a quick rundown. I joined GE Supply in 1999, where I had increasing roles of responsibility, ultimately as District Manager in the New England region. In 2006, I moved on to Crescent Electric Supply Company, one of the largest electrical distributors in the US, where I progressed from District Manager to Vice President Eastern Region to General Manager, holding responsibility for US$1 billion and overseeing more than 120 national branches. In 2015, I became President of Newark Element 14 (now Avnet), managing sales across the US, Canada, Mexico, and Latin America. During my time there, I also helped lead the sale of Newark/Premier Farnell for US$907 million to become Avnet’s largest acquisition. Then, in 2018, I joined the Würth Group as Executive Vice President and CEO of Würth Industry North America.
But, now the fun part – the hot dog cart: When I was faced with how to fund my college education, I knew I was going to have to get creative. I had an idea, and I was pretty confident in it, so I went for it. I took out multiple loans to finance a hot dog cart and went to work selling hot dogs through all four years of college, and at graduation, my cart was paid off, and so was my tuition. Selling hot dogs to pay my way through college showed me (and my future employers) that I would excel in sales and have an entrepreneurial spirit. It helped me get to where I am today.
TS: So, after all that, you wind up in the fastener industry. What surprises you most about the fastener industry?
DH: How connected the industry is and the long tenure of so many people in the industry. It’s impressive to see the long-standing connections that have been made and friendships built over many decades. We are a big supporter of organizations like NFDA and Women in the Fastener Industry. We believe in nurturing young talent and having a diverse workforce. We appreciate the leadership throughout the industry that also believes in these goals and works to train and develop the fastener workforce of the future.
TS: What things do you like most about the industry?
DH: The people, hands down. I’ve worked in several different industries, but this one has so much passion. It is really cool when you think about it – nuts and bolts are just nuts and bolts, but they aren’t just that when they are holding together the camper that your family travels in every weekend or the bridge you drive over on the way to work and school, or the tractor that farms the land to produce the food we eat. The people who work here feel that they know how our business impacts how we live, move, and enjoy life. I’m especially proud of Würth Knowing, our engineering YouTube program we launched this year to educate our customers and our employees—sharing our knowledge with others is a passion for our company.
TS: What are the biggest challenges of coordinating several different, uniquely run companies into one Würth operation?
DH: When I started in October of 2018, I was hired as a turnaround guy, and I have a successful history of making companies more profitable. Professor Würth has a famous saying, “Growth without profit is fatal.” So, over the last 2+ years, we’ve worked on restructuring the North American business into key markets: Industrial, Construction, MRO/Safety/Metalworking, and Specialty (3D/Marine) that better support customers. And clearly, this is working – we’ve expanded our customer base and are more profitable because of our focus on the customer.
TS: 2020 and 2021 have been unique years in the fastener industry. I have some long-tenured fastener friends who have acknowledged that they have never seen a market like the one today where product is hard to procure, imports are difficult to get delivered, and prices keep rising. And then, even those who have access to product do not always want to part with it. Hiring employees is difficult, and then there was the entire logistical situation of how to run a business during a 100-year pandemic. And this is the market that you find yourself in as the most recent CEO of Würth North America! I cannot imagine this was what you saw coming when you took the position.
DH: Definitely not. I don’t think anyone could have imagined this. But, what the current market conditions have done is showcase the strength of our company, our leadership, and our entire team. We’ve come together and supported each other and our customers. The organization’s adaptability, resilience, and creativity over the past two years will undoubtedly go down in the WINA history books. During the pandemic, we launched the Wurth Additive Group, a 3D Printing solutions provider, and signed a global partnership with Markforged, the leader in metal printing technology. We expanded into new markets through this initiative and now offer an end-to-end inventory solution—from low minimum complex assembly printed parts to high volume competitively priced parts.
TS: Würth is a German-based company. Do you see many differences in how they run a fastener operation here in the states?
DH: I have a deep respect for the Würth Group and its culture. Professor Würth, who built the business into a US $20 billion, very profitable organization, is still a driving force and influence in everyday operations. The Würth culture focuses on entrepreneurial spirit, personal accountability, and delivering the best customer service—this is why they have been successful and will continue to grow the business. Because the culture is customer-focused, there are differences in how we service the customers in different regions. However, one of the key areas that we excel at is our global support of customers that have operations in all three regions: Americas, Europe, and Asia. We have over 400 businesses across the globe that provide vendor-managed inventory solutions along with on-demand printed replacement tools and parts—no one else can provide that level of customer service. We’re proud to be part of this global organization that invests in innovation and its people.
Note from TS:
I have a regular column in Fastener Technology International (FTI) magazine, called 10 Minutes with the Traveling Salesman, which can be read online at www.fastenertech.com. Subscriptions to FTI, print and digital editions, are free-of-charge for fastener manufacturers, distributors and users as well as suppliers to the industry.”
Casual Observation regarding the MWFA Table Top Show
The fastener magazines and Fully Threaded Radio can report on the Table Top Show. For the record, I thought it was excellent. But one thing that might get unnoticed or overlooked that I think is worth noting. The sports bar that is right across the alley from the host hotel is one of the best meeting spots in all the fastener industry. It comes closest to the old days of Columbus. Whether you go there for lunch, mid-day between events/classes or in the evening, it is the go-to place for fastener people to hang out. More business and networking getting done in that sports bar than at most trade shows across the country. At least that is my observation.
10 Minutes with Matt Boyd, Parker Fasteners
TS: Matthew Boyd, you are the Vice President of Sales for Parker Fasteners. How long have you been with Parker and how did you end up with the company?
Matt: Thank you, TS, for the opportunity. I have been with Parker Fasteners for eight years, September of this year. Previous to Parker Fasteners, I spent almost 13 years in distribution, working the last four years as a District Manager for the Fastenal Company. When Parker Fasteners started to call on me as a local customer, I was intrigued by Parker Fasteners. Not many fastener manufacturers are starting from scratch these days, so my interest started from that point. Overall, making the transition from distribution to manufacturing was a challenge, however I would do it again in a heartbeat!
TS: Please share with us a little bit of the history of Parker Fasteners
Matt: Parker Fasteners was founded by Robert Parker in May of 2012. With over 20 years of experience in fastener manufacturing, Robert brought instant creditability and know-how to the operation. I call it the “Original Fifteen” of employees who started with Robert in the beginning. This group of employees have shown grit and the willingness to take a chance together, with Robert’s dream of creating a company that values employees and takes care of its customers at the highest levels possible. This philosophy has set myself and the rest of our sales team up for long-term success in the market.
TS: Your company slogan is – “Parker Fasteners – Forging the Future”. You’ve got it printed on t-shirts, it is on your website. Why is that slogan a good fit for your company? What are you guys trying to say to the fastener industry?
Matt: In the beginning, many folks in the industry didn’t take us seriously. It was almost like our age in the industry was working against us. After our second year at the Fasteners Show in Vegas, walking down the aisle to our booth towards the back of the show, Robert mentioned to me that we were “Forging The Future through Quality Products and Customer Service.” I quickly took out my phone and took notes on what he had just said, so unassuming. Once we made it back into the office, we revisited the thought he had and boiled it down to “Forging The Future.” The slogan is the rally cry to our employees, customers and vendors today. For employees, the company wants to reinvest and give back for all of the hard work and dedication that they make daily. For customers, the company is continuing to reinvest in itself to improve the offering, so each order that is made to Parker Fasteners is an investment in everyone’s future. Concerning our vendors, making sure they understand our plans to growth is key to our success. So, as you can see, our company’s aggressive approach is communicated throughout the business.
TS: You moved into a new manufacturing facility during 2020, and during Covid. Tell us about the new facility.
Matt: Can’t say enough about our new facility, located in Buckeye, Arizona. It was a challenge moving in April/May of 2020, however with all of the efforts that we put in, we were very careful and completed the move without any COVID related issues. Operating from 66,000 square feet, in one building, 100% climate controlled has made all the difference. Our team has done a wonderful job of laying out the facility, organizing it and we are setup for years of growth. We are also sitting on 10 acres in total, so we have another 100,000 of square feet of future expansion. Our employees have responded very well and we have almost doubled our production since we moved. If anyone in the industry is interested in taking a tour, please reach out to me and I would be happy to schedule it.
TS: While Parker Fasteners has a wide range of capabilities, you really seem to concentrate on socket head cap screws and mostly product made from stainless steel. But you tell me – what products do you consider to be in the Parker “wheelhouse”? What markets do you target and serve?
Matt: Yes, Stainless Steel and A286 sockets are over half of our business today. Being so close to California, we are able to rely on our vendors to keep us competitive on those types of raw material and outside services that are required for socket head cap screws. With that product offering, we also offer button, flats and related products that require the deep recess. Other materials that we offer are alloy, monel, brass and nitronic 60. What the industry also needs to be aware of, is that we offer the longest, precision cold die cold heading capabilities in the country. Capable of producing 12” from under the head, this is a unique product offering for domestic manufacturing. We also offer expanded products for the military and aerospace markets including per print specials.
TS: The company could have moved in many directions, so how did the company come to concentrate on those products and markets?
Matt: Starting nine years ago, we were looking to fulfill any needs in the open marketplace. We quickly found our niche’ in the socket drive business, just by listening to our customers. Being diversified in as many different markets is an company goal. We currently service many markets domestically and globally. As a growth company, it is always best to engage us to see if a part would be a good fit for our equipment or not. We are always willing to recommend other proven manufactures who we know if the part isn’t a good fit.
TS: In the Midwest it is very difficult to hire machinists and individuals who can operate heading equipment. Is it the same in Arizona? What are you doing to recruit and train?
Matt: Yes, the labor market is very unique right now. In past years, we would look for experienced labor from other states to recruit, and we still do today. However, we have found success from developing our own internal training plan for candidates without hands on experience. This has proven track record for the company. Regarding retention, when employees see that a company is investing in them and their future, they are most likely to stay and match that investment with their own personal goals and efforts. This has been our strategy over the past two years and it has given us the talent required to grow our business.
TS: What is in store for Parker Fastener in the upcoming years?
Matt: Working smarter, not harder is the mantra that we have used since our move into our new facility. To explain further, we have invested heavily in our ERP System, Quoting Software, equipment and our people. Staying competitive in the marketplace, providing reasonable lead times and engaging our customers to meet their needs, is what we are all about. The reinvestment outlook that we have will continue our company’s efforts to “Forge The Future!”
TS: What are a couple things people do not know about Parker Fastener or its people that you want to tell the fastener industry?
Matt: The culture at Parker Fasteners is one of a kind. From the way that we engage our customers, employees and vendors we are constantly looking to find the win-win for everyone. It’s one of a kind effort that we put into our business daily, and it’s our goal to improve each day.
Note from TS:
I have a regular column in Fastener Technology International (FTI) magazine, called 10 Minutes with the Traveling Salesman, which can be read online at www.fastenertech.com. Subscriptions to FTI, print and digital editions, are free-of-charge for fastener manufacturers, distributors and users as well as suppliers to the industry.”
10 Minutes with Cris Young, Product Genius Technology
TS: I had a chance to review the Fastener Industry: Digital Landscape 2021 Report where you rated fastener companies and scored them on their websites, digital footprint, social media exposure, etc. You put a lot of work into this. I almost do not know where to begin so I will just dive right in.
You and Lisa Kleinhandler are involved in a lot of technology and fastener operations including Fastener News Desk and Product Genius Technology. And, you have a very strong digital footprint yourselves with all the sites you are involved with.
What made you decide to quantify everything and generate this report?
Cris: Product Genius Technology is focused on consulting and assisting both fastener distributors and manufacturers with their digital strategies. In order for our business to better understand our target market, we decided to take a closer look at the digital footprint of the fastener industry in 2021.
The global pandemic was an awakening of sorts for even the fastener industry. While deemed essential businesses they were forced into adapting to the new work environments that their customers were facing. A digital representation became the lifeline to clients and new prospects. It was a driving factor behind this report. We hope that our findings will be a useful tool for companies that are committed to improving their digital representation and overall customer experience.
In our 20-criterion evaluation we identified 271 fastener manufacturers and distributors that have an online representation. Each company was researched, analyzed, and scored for their digital performance. Our report will provide business leaders a better understanding where they currently rank and where they should be focusing their
digital strategies and investments.
TS: What was the most surprising discovery you made from doing this report?
Cris: Can you keep a secret Marty? A top 5 contender is not a publicly traded company? You will have to get the report to see who it is! (There is a link below to request a copy of the report – Click on Product Genius Technology icon below to connect to site where you can request the report)
Some of the key findings from the report:
24% of the businesses provide a fully functioning eCommerce storefront for their clients
75% of fastener websites are responsive and mobile friendly
22% of the websites in our report provide online purchase orders and invoicing
TS: You and I have had some lengthy and serious conversations about companies who lack a strong online presence. You often warn me that the majority of fastener and industrial supply commerce will be conducted electronically, a lot sooner than maybe even our industry expects. Tell me more about why you feel so strongly about this.
Cris: Follow the money! The number one ranked company in our 2021 report projects 80% of their sales to happen online by 2022. B2B eCommerce sales are projected to reach $20.9 trillion dollars by 2027. Technology is moving at the speed of light, either you participate in it or face extinction. Client interaction is digital, period.
TS: Tell me about Product Genius. What is it and who should care about it?
Cris: Product Genius Technology is a patented ecommerce experience application that simplifies the search, sort, and display of fastener products online. We learned through our own experience of creating websites and ecommerce for our distribution business that filtered or faceted search was the only way available for sorting complex products. Some items such as hex cap screws can have hundreds of pages of results based on these systems. This directly leads to a poor customer journey/experience which is of the upmost importance to today’s B2B buyers. Recent studies show 80% of B2B buyers are willing to change suppliers for better customer experience. This is reason enough for anyone selling fasteners and industrial supplies online to care. Who does not want to provide their clients with the best online buying experience? Searching 700 pages of anything is unacceptable. As distributors it is up to us to explain how fasteners are sourced and purchased to our technology providers so that our investments will provide our clients with the best user interface and customer experience.
We took the way fasteners had been represented in catalogs for hundreds of years and created a digital representation. A new product view feature if you will, that allows the buyer access to an entire product category from a one-page buying experience. It replaces filtered search for complex products with large volumes of results.
Most of the fastener industry is comprised of the small to medium size distributors/manufacturers, some are still family owned. These generational businesses are constrained by the lack of in-house IT and technology leadership. We provide our clients with the 95 years of industrial fastener industry experience, plus our knowledge of how distributors & manufacturers can leverage different types of technology to achieve their digital goals and investments. We are the IT team that knows your industry and helps guide the digital strategy your company will need to succeed in today’s online marketspace.
TS: How does Fastener News Desk fit in with all these other ventures?
Cris: Fastener News Desk is the industry’s #1 online source for anything fastener related. While it has no direct bearing on any of our other ventures, Fastener News Desk does provide educational content regarding digital trends that affect every one of us.
TS: Do you still own a lot of fastener domains? I think we did an interview many years ago regarding this topic.
Cris: Yes, we have a portfolio of premium fastener domain names. When launching an eCommerce brand online it is important to choose a domain name where people can find you. Some brands may opt to use their company name, and some choose a catchy more SEO-friendly name that will resonate with their digital clients. Some companies maintain multiple domains.
If you are interested, contact us: 1-800-Fasteners (327-8363)
TS: Where do you see the industry heading in the next 5-10 years?
Cris: That depends on how serious companies take the transformation into digital. While M&A activity has increased over the past few years, PE firms want to purchase companies that are on the top of their game. Getting your company digitally ready for growth or acquisition would be beneficial for short- and long-term goals and assist in a profitable exit strategy for family-owned generational distributorships.
TS: What are your plans moving into the future? Fastener News Desk, Product Genius, etc. Where is this all headed?
Cris: Fastener News Desk will continue to lead our industry online with pertinent content, networking, and business opportunities.
Product Genius Technology will continue to educate, train, and consult with fastener companies to assist them in achieving and maximizing their full digital potential.
TS: On a personal note, you and Lisa relocated up to Maine.
How is that going for you?
Cris: We love it here! We are four season folks, so this suits us. Surrounded by mountains and the coast we have plenty to explore and enjoy. The seafood and IPA’s are A-M-A-Z-I-N-G!
TS: What are the biggest things that concern you about the future of the fastener industry going forward?
Cris: The immediate concern is the lack of attention to digital technologies and how they can provide the growth we all work so hard for. Also, of concern would include the adoption of 3D and additive manufacturing capabilities for fastener companies. Of course, there are workforce, supply chain, logistics and tariff issues to be concerned with as well but these are more out of each company’s control.
TS: You were heavily involved in the early years of WIFI (Women in Fastener Industry). You were also an early representative to the Fastener Industry Coalition as a representative for WIFI.
Cris: As a founding member of Women in the Fastener Industry and its first two-year president I had the opportunity to meet with and learn from many of my female industry peers. I consider this experience invaluable! Every fastener company executive should donate their time to the industry organization of their choosing. It will provide you connections and opportunities that the benchwarmers will not get.