Fastenal Co. (NASDAQ:FAST) is a leading distributor of nuts, bolts, and threaded fasteners to manufacturers and contractors throughout North America. Since expanding its inventory mix over the last decade, Fastenal has taken market share from competitors as customers increasingly select the company as their exclusive supplier. Still, Fastenal has just 3% share of the large and fragmented industrial supplies space, leaving considerable room for expansion. The company’s recent vending initiative has grown to 50,000 automated machines directly embedded within customer facilities. These machines dispense frequently consumed products such as gloves and safety glasses directly at the point of use, an industry innovation that has helped Fastenal generate greater savings and accountability for customers, while driving industry-leading sales growth for itself.
From Baron Funds' Second Quarter Insight: Finding Growth in Industrials.
