Stanley CEO on Craftsman and Omnichannel
Stanley Black and Decker, a company whose very name hammers on the trend of industry consolidation, says its recent acquisitions of Irwin, Lennox, and – not least – Craftsman are proceeding on schedule.
“There's a lot of really good things going on relative to Craftsman,” CEO James Loree told analysts. But he couldn’t give a lot of color (analyst speak for “information”) for competitive reasons. Stanley acquired Craftsman from Sears in a complicated deal that closed in March.
Still, Loree did offer the following Craftsman acquisition updates:
• The launch outside of Sears for the craftsman brand will be mid-2018.
• Stanley, he said, is “hard at work developing commercial strategies” for the Craftsman brand, and customer discussions are continuing.
• Plans call for a “complete comprehensive product line that spans all categories.”
• It’s safe to expect about $100 million a year in incremental revenue growth for the foreseeable future, thanks to the addition of Craftsman.
• Craftsman “gets us into gas,” Loree said, pointing to the lack of a gas engine lawn equipment power initiative prior to Craftsman.
Loree also responded to a question on a much broader topic for the entire tool industry: the coexistence of e-retailers and home centers. Loree responded: “We would be foolish to think that it’s not going to a substantial part of market in the years to come. It already is a substantial part of the market.” He said that traditional home centers are already powerful forces in the e-commerce space. “Maybe it all gravitates towards omni-channel at some point,” he added.
Factory is coming to America
Rinnai America Corporation, a subsidiary of Rinnai Corporation, plans to build its first North American manufacturing facility in Griffin, Georgia. The company intends to start its manufacturing and assembly operations in an existing factory in Griffin in April 2018 and then move these operations to a new 300,000-square-foot facility that Rinnai will construct. Rinnai will produce both residential and commercial products in Griffin.
The company claims the move will make it the first to manufacture tankless gas water heaters in North America.
“Rinnai America is bullish about building a factory in America and is exceptionally proud to show our industry leadership,” said Frank Windsor, chief operating officer. “Rinnai is dedicated to product and technology innovation that exceeds the expectations of our dealers, installers, customers and consumers.”
The plan follows the company’s investment in a new innovation center and headquarters expansion in Peachtree City, Georgia – moves that will enhance awareness of of the tankless water heater category, the company believes.
“Rinnai America is fully committed to its corporate vision of ‘Enhancing lives by changing the way water is heated,’” said Windsor. “This new Rinnai manufacturing facility will further strengthen our capability of bringing the comfort and energy efficiency of tankless water heating technology to families in North America.”
Rinnai conducted a thorough search of potential manufacturing sites and had narrowed the list of potential locations down to sites in Alabama, South Carolina and Georgia, before settling on the Griffin location. It didn’t hurt that Griffin is close to the Atlanta Motor Speedway, where Rinnai sponsors the Nascar Xfinity Series Rinnai 250 race.