When you first think of MSC you think of MRO products and cutting tools. At least I do. And, their big catalog too. So the acquisition of AIS is interesting. Without question, I’m not aware of all the capabilities of both companies but I had thought of AIS as more a VMI fastener supplier, for the most part. When they purchased Great Lakes Fasteners in Michigan a few years ago, that seemed to be an expansion of territory but not altogether a different type of business. While many of their products overlap, how they have gone to market would seem…well, different. Could be a very good move in order for MSC to expand even more into the VMI marketplace. And, in the end, everyone seems to be positioning themselves to compete on a bigger level with the Fastenals and Graingers and eventually the Amazons.
One other interesting note I read in Industrial Supply Magazine. It said “MSC Industrial Supply has acquired All Integrated Solutions (AIS) from New York-based private equity firm High Road Capital Partners”. I think we underestimate how much of our industry in now owned/managed by private equity firms. So many of the family run companies are no longer owned by families even when there are still family members involved on a day in, day out basis.
Would like to see a panel discussion on this topic. Hey Morgan, maybe right before the pool party in Vegas?
Javier–They already did. Amazon bought Partpic. The co-found Jewel Burks worked for McMaster–Carr Industrial Supply. She had the idea to do a visual search for MRO parts on fasteners. That technology is now sold and owned to Amazon and she is running their A9.com department, so I’m sure a mobile apps and website of parts for distributors is coming soon.
I had several conversations at the South Western Fastener Association about exhibit attendees. A realization happened that the 10 mom and pop distributors that would have attended the association conference are now own by one company and/or private equity firms. So even though that one big distributor is attending the show, they just removed 9 others from attending because they are all owned by one company. The industry needs to change with the times and that includes having a digital presence
Great points and great info. Thanks for sharing.
As a matter of fact, I think Amazon should be itching to buy an industrial distributor soon. And I’m not the only one thinking that, seen a couple of articles now talking just about that:
https://www.inddist.com/blog/2018/04/forbes-columnist-grainger-should-be-amazons-2018-shopping-list?et_cid=6323737&et_rid=652383828&location=top&et_cid=6323737&et_rid=652383828&linkid=content_link
TS:
Thanks for keeping me informed about the industry in which I spent nearly 40 yrs of my life.
I never thought I would ever see the day when Amazon is mentioned in the same sentence with Fastenal and Grainger!
Jim Bannister
Former Partner
National Industrial Fastener Expo
Why should the fastener industry be any different from the rest of American industry? The interesting thing about the visuals in this apparent coup by “Wall Street Interests” (and MSC has been part of that for a while now) is the actual parties get to hide behind branding. In the case of MSC, we have an idea of who owns what, in the same way that a fast food industry maven knows Berkshire Hathaway and Warren Buffet own Dairy Queen. We all need to do a better job of paying attention to what is happening to our country, otherwise whatever comes to pass is all of our faults.