Embedding a Culture of Organic Growth
We continue to build momentum in our pursuit of sustained, above-market organic growth. And while we are ready to return to acquisitive growth when the right opportunities arise, we have made organic growth a focus of our strategy—and our employees’ daily lives—going forward. The launch of SFS 2.0 was conceived as a key enabler, catalyst and cultural driver of organic growth.
by Tools & Storage,
in North America
and 7% in Europe
Leveraging #1 in Tools & Storage
Tools & Storage goes to market primarily via twelve world-class brands but as one tool company—the world's largest by almost every measure. We are not just number one overall. We are number one in power tools and power tool accessories. We are number one in hand tools and storage. We are the only player that competes in construction, do-it-yourself, auto repair and industrial tools across the spectrum and we have that presence in developed and increasingly in developing markets. And we continue to deliver above-market growth.
Fastest Growing and Most Profitable Most Innovative and Most Productive This business represents the world's largest, most global, most innovative, fastest-growing tool company—while also being highly efficient and highly profitable. These are not qualities that typically go together. Rarely is fastest-growing coupled with high profitability, or leading in bringing new solutions to market coupled with high productivity—and we are accomplishing this on a global basis. This is the result of a number of factors, including operational excellence engrained by our SFS operating system, world-class brands, strong management and great people—all guided by a growth and industry consolidation strategy that has been in place for well over a decade.
Delivering Revenue and Cost Synergies—
“Not about cost, it’s about growth.” In 2015, we combined our legacy CDIY and Industrial & Automotive Repair tools businesses under one organization to truly harness the power of our global tools franchise and to drive revenue and cost synergies, in the interest of growth. The argument for consolidation was compelling. Seventy percent of the customers between the legacy businesses were common, as were 80% of the products and 100% of the geographies served. It has simplified and streamlined relationships with leading customers—many of whom had been asking for this change—and it has helped to clarify our strategies going forward. Tools & Storage started operating as such in January 2015. Its first year of operations has exceeded our ambitious expectations.
In the first six months, our consolidated teams in the U.S. and Europe doubled their growth rate versus what they had done independently.
Setting the Pace in
STANLEY Engineered Fastening offers an extensive portfolio of highly engineered value-added products and innovative solutions that drive value for our manufacturing and industrial customers worldwide. Our total assembly solutions—typically developed or refined in collaboration with the customer—include the engineered fasteners, installation equipment and software system. This improves productivity and lowers total manufacturing costs while addressing key quality requirements that build customer satisfaction. Our Advanced Industrial Solutions group works closely with leading global industrial customers to deploy cutting-edge inventory and asset management solutions that leverage technologies such as passive RFID to help reduce costs, improve efficiency and safety, ensure compliance with industry regulations, and ultimately create the intelligent digital environment. STANLEY Engineered Fastening has repeatedly demonstrated the ability to grow in excess of GDP and continues to grow well in excess of its largest market, automotive.
Improvement in Working Capital
Turns Driven by Deploying SFS
Organic Growth and
17% Revenue CAGR Last Three Years
World-class Branded Franchises
Stanley Black & Decker has strong franchises in the markets in which we compete around the world. Tools & Storage is far and away the leading business of its kind in the world, with ceaseless innovation that continues to drive growth. Our Industrial franchise is anchored by STANLEY Engineered Fastening, a high growth business with a recurring revenue-like model, a well-balanced global footprint, and global scale. Industrial also includes two leading infrastructure businesses, STANLEY Hydraulics and STANLEY Oil & Gas. Our Security franchise remains the number two commercial electronic security business in the world, with a compelling global footprint, a recurring revenue model and capex-light capital consumption versus residential security. And while currently a work in progress, we believe in its future and great opportunities in high value-added vertical market solutions to drive organic growth and margin accretion over time.
A Powerful Portfolio of Well-Managed Brands
Global Brand Support Upholding and showcasing our brands is a dynamic suite of marketing sponsorships. Our diverse portfolio of brands can be seen throughout the globe partnered with exciting programs such as FC Barcelona, English Premier League Football, Chinese Basketball, Professional Bull Riding, NASCAR, NHRA and more.
Brand Impressions Per Year
Social Media Impressions Per Year