Episode summary
Fastenal CEO on US Manufacturing, Emerging Tech, Leadership Challenges | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · Hosts: Carol Massar, Tim Stenovec · Guests: Daniel Florness, Jeffery M. Watts
Summary
Fastenal CEO Dan Florness said the industrial backdrop remains mixed, with the ISM purchasing managers index still below 50 for most of the last three years and little lift from the broader economy. Even so, he said Fastenal finished the second half of 2025 with double-digit growth, which he described as more a result of taking market share than of any favorable macro tailwind.
He pointed to data centers as a real source of strength, saying some contractors tied to that buildout have seen business surge, especially in markets like Atlanta and on the East Coast. On pricing, he said the main constraint is customer mix: production-oriented buyers of large volumes of narrow-product SKUs are more price-sensitive than MRO customers.
Florness also discussed tariffs and sourcing, saying Fastenal has spent the last six to seven years broadening its import network beyond Shanghai and southern Taiwan into Bangkok and India. On US manufacturing, he said he hears less about production leaving than he did years ago, but more often about companies expanding closer to local customers across North America.
Key takeaways
- Fastenal’s CEO said the industrial economy is still weak overall, with the ISM PMI below 50 for 36 of the last 38 months.
- He said Fastenal posted double-digit growth in the second half of 2025, driven mainly by market-share gains rather than macro demand.
- The guest said data-center construction is a real demand driver for some industrial customers, especially in Atlanta and on the East Coast.
- He said tariffs pushed Fastenal to diversify sourcing away from China and Taiwan toward Bangkok and India over the last six to seven years.
- The guest said US and North American manufacturing shifts are more about serving local customers efficiently than a broad reshoring wave.
Notable quotes
“the economy is not given us any lift. Um we are getting good traction in the marketplace and we we finished out the last half of 2025 with double digit growth”
“If it's a business that's, you know, linked to certain industries and and data center is an example from a recent trip I had on the east coast”
“I can tell you this from my travel. If it's a business that's, you know, linked to certain industries and and data center is an example”
“Today, we have personnel in Bangkok. We have personnel in India. And that's where all of our growth and movement of sourcing personnel has occurred”
“I hear less about stuff leaving than maybe I would have you know 10 years ago or five years ago and and that in itself is is a win”
How the episode opens
Bloomberg Audio Studios podcasts, radio, news. — You're listening to Bloomberg Business Week with Carol Masser and Tim Stenc on Bloomberg Radio.
So, something we've already touched upon and this is this letter uh from 60 CEOs of Minnesota based companies, more than 60 I should say, um have called for an immediate deescalation of tensions between state, local, and federal authorities. uh as the state is reeling from another fatal shooting of an American by immigration uh agents. The chief executive officers of companies, they include Target, Best Buy, Lando Lakes, Cargle, General Mills, United Health Group uh as well as professional sports teams, including the Minnesota Vikings among the signitories of the letter that was shared yesterday, Sunday, by the Minnesota Chamber of Commerce.
Um we're laying that out for those who are watching on streaming and TV. Um, just to get to the crux of it though, the open letter says, "We are calling for an immediate deescalation of tensions and for state, local, and federal officials to work together to find real solutions. This is why Tom Hman is headed to Minnesota.
Our next guest is head of a company in the great state of Minnesota. We're talking about Fastenel recently reported earnings, the stock selling off on the day of the report, but rallying the day after the most in 9 months. That trade reaction had us scratching our heads.
So, we're grateful, Carol, to have back with us to talk about the release of the outlook, the CEO of the close to $50 billion market cap company, Fastel, Dan Flores, is back with us.
Yeah, so delighted. Um, let's get to it. Dan, good to have you here. Happy New Year. Um, we do love talking with you. We feel like we get a great read on the US economy, the manufacturing world.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- us manufacturing
- emerging technology
- leadership challenges
- ceo transition
- industrial company strategy
Companies and tickers mentioned
- FAST
- Fastenal
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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