Another name we added to in the quarter was Tennant Co. (TNC, Financial), the Minneapolis-based manufacturer of commercial and industrial floor scrubbers and sweepers. It is a company we have watched for years as they invested to bring high tech solutions to cleaning floors by adding telemetry and robotics. Labor is about 70% of the cost of floor cleaning and maintenance. With on-board telemetry, operators can track expensive equipment to monitor both usage and maintenance. Recently introduced autonomous machines can run without an on-board operator, promising large cost savings and generating a lot of buzz in the market. Until recently, however, buzz had not translated into adoption. That changed when the retailing giant Walmart (WMT) made a significant commitment to roll out autonomous cleaner/sweepers to 1,400 stores. We think this new line will be a significant driver of growth over the coming decade.
From Mairs and Power (Trades, Portfolio) Growth Fund's third-quarter 2019 shareholder letter.
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