STANLEY BLACK AND DECKER – FROM BOLTS TO THE GLOBE’S BIGGEST TOOL COMPANY
A focus on R&D, an end user obsession and a wealth of big name brands, Stanley Black and Decker’s progression has seen it come to offer a total tool solution…
Stanley Black and Decker is the world’s largest tool company. It makes an enviable range of tools and tops the polls for many who rely daily on its tools to make a living or simply drill a few holes or drive a few screws. But success, and especially continued success in the marketplace, has many facets, and also relies on management and directors to make good strategic decisions – like diversification, acquisitions and Research and Development, to name but three. We need to understand a bit more about these to build a picture of Stanley B and D as it is now.
Some history Frederick T Stanley was born in Connecticut in 1802. One of seven children, he learned his work ethic at a young age on the family farm. By 1843 high-flyer, Stanley had co-founded the Stanley Bolt Manufactory, and The Stanley Works in 1852. At the time of his death in 1883, The Stanley Works had developed into a well-known manufacturer of hinges, planes, bolts, bits and other tools.
Stanley understood the importance of infrastructure and finance in ensuring the growth and success of his businesses. For example, in 1857, he helped design a modern waterworks to serve Hardware City, and despite much opposition from the people of New Britain, he continued to plan and promote infrastructure improvements.
Stanley also saw the growth of his personal enterprises into what was viewed as the best employers in New Britain. He was determined to transform the city into a modern manufacturing hub and his fellow citizens eventually recognised his commitment to the city. A New Britain Herald article from the 1880s wrote “He has done more for New Britain than any one [sic] here”.
Expanding horizons By the time Stanley and Black and Decker merged in 2010 the company had already become a global supplier by the process of expanding into other countries, building factories and making other strategic decisions. Two world wars and an increasing demand for manufactured goods, tools and machines also helped to ensure a steady growth of sales for innovative and necessary basic tools.
For example, in 2005, Stanley acquired Facom, a French hand tools company. Stanley already generated 30% of its sales from outside North America, and by the time of the merger with Black & Decker five years later, that number had grown to 44%. So strategic acquisitions like Facom allowed for further growth in a diversified market.
Like Stanley, the history of Black & Decker also shows a tendency towards international expansion. Founded in 1910, the company opened an export department in 1925 and hired its first international sales representatives in 1927. Over the next half-century, Black & Decker continued its international expansion and distribution, either manufacturing in or exporting to more than 40 countries in Europe, South America, Africa and the Far East.
Even the fall of the Soviet Union was an opportunity – in 1991 Stanley Tools Poland was the first company to be formed in the Eastern Bloc.
The Stanley Black & Decker family of companies separately brought strengths in different areas, so when they merged, they represented a global powerhouse with sales and operations in key areas around the globe. At the same time, the company does not neglect its local brands to ensure they remain strong components of its global strategy.
// The POWERSTACK system produces more consistent power from a compact 18v battery system that is favoured by jobsite tradespeople. //
Success is built on... ...Innovation and technology Stanley B and D continues to invest heavily in R and D and new technology. Its expansion into different product segments (like gardening) have some crossovers that can be used in a number of products. Battery technology is one of the most important of these areas, and the company is well known for its FLEXVOLT battery platform, and more lately, the POWERSTACK system that produces more consistent power from a compact 18v battery system that is favoured by jobsite tradespeople.
But with opportunities for bigger cordless technologies in the gardening and groundskeeping areas, Stanley B and D is investing heavily to compete in this growing market. I was assured that the company likes to be the leader in the race for new tech. With generous investment and R and D teams already in place it has a head start.
...Brands Stanley B and D has acquired many brands in the last 20 years. Facon, an umbrella of brands under Irwin Tools, Craftsman and LENOX are just a few. The brands cover a wide range of tool sectors but have enough brand recognition to stand alone. But at the same time, they have enough range to make end users feel that they don’t have to search outside the Stanley B and D brands to find all the tools they need for a total solution to their tool buying.
...End-user obsession The company spends a lot of time and effort talking to its end users and feeding back opinions and findings to the R and D teams. Stanley B and D likes to be the first on the block with new products and other innovations.
...Leadership Staying No 1 globally is not a simple ambition. It requires an understanding of diversity, inclusion, marketing and the environment, as well as tools. The leadership to make sense of it all and make the right strategic decisions is key too. There are many examples of misguided investment in the wrong products in the world of tools and Stanley B and D has tried hard to ensure that the management team can recognise the need for a much wider vision of the tool industry, as well as understanding the need to be a good employer, being socially responsible as well as dealing with climate issues, recycling, energy and sustainability.
So, the next time you are weighing up your next tool purchase, be you a DIYer or a professional, you may take into account all the other factors that make for a good tool, and not just the price. To coin a much-repeated phrase – In the world of tools, we have never had it so good.