JUNE 2018 FORBES ASIA | 53GLOBAL 2OOO
SUP TDOWN
OASIAN COMPANIES ARE IN RED TYPEUNCHANGED ONEWSears never made tools, but it knew
where to have them made. In olden times
Craftsman was a revered product line, with
loyal do-it-yourselfer fans who would talk
about how they were still using the Crafts-
man drill or sander that granddad had
bought. Under the Eddie Lampert regime at
Sears the line decayed, collapsing from $2
billion in wholesale revenue to less than $1
billion. Loree paid around $900 million last
year to get the name, a few employees and
about $100 million in sales to Ace Hardware.
No assembly lines went with the transaction.
“We were staring at this brand potentially
being released into our world, which would be
a huge threat from a volume point of view if a
retailer got it or if one of our arch competitors
got it,” Loree says.
Sears had long ago outsourced its power-
tool manufacturing to Asian suppliers. Loree is
going to bring most of the work home to Stanley
Black & Decker’s 30 U.S. factories. This may be
a financially challenging goal, given that com-
pensation for Stanley’s roughly 8,000 factory-
floor and distribution-center workers in the U.S.
is mostly between $10 and $25 an hour. But it
will allow the company to cut down on shipping
costs and reduce the risk from Trump’s tarifs.
Stanley’s archenemy on the hardware
store shelf is Techtronic Industries, a Hong
Kong-listed firm that has done a skillful job
of marrying American brands like Milwaukeeand Homelite to Chinese production lines. A
contractor looking at the Milwaukee display
in Home Depot may think his drill comes from
Wisconsin. It likely was made in Guangdong.
Loree aims to get some mileage out of the
American flavor of his revival plan for Crafts-
man. Craftsman tape measures will be added to
the production lines at the 12-acre New Britain
factory now making 5.5 million Stanley Fat-
Max tape measures a year. “We have a sense of
history in this company,” Loree says. “Bringing
the products up to a new standard with a real
emphasis on ‘Made in America’ is a huge deal
with many of our end users.”
Craftsman power tools, hand tools and
tool chests will be sold via Lowe’s, Ace
hardware stores and Amazon. Susquehanna
Financial Group analyst Robert Barry es-
timates that this line will hit the $1 billion
mark in 2023.
Additional growth will come from emerg-
ing markets, which Loree wants to push up
from 14% of Stanley’s $13 billion in annual
revenue to 20%, in part by creating products
specifically geared toward those countries’
needs, such as tools for metalworking in
Mexico. He sees opportunities to fill in gaps
in Stanley’s product lineup, such as in abra-
sives, tools in Japan, and lawn and garden
products. It already gets revenue from such
diversifications as motion-activated doors
and industrial-fastener systems. His goal is to
crank up revenue to
$22 billion by 2022.
Stanley’s ad-
vanced manufactur-
ing center, slated
to open in August
in Connecticut’s
sickly capital city of
Hartford, will test
new technologies,
including 3-D metal
printing that might
someday allow a
tool company to
print out products
in retail outlets. If
there’s any future in
American manu-
facturing Stanley is
going to be part of
it.NORILSK NICKEL RU 660T
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FNH Foods 1964
A household name in Japan, the Osaka
food manufacturer once known as
Nippon Ham had a bullish run last year.
The bacon and sausage maker’s net
profit also surged by 61%, partly from
higher sales in its processed-foods
business. NH Foods rolled out a slew of
new products, including its new grilled
Kiwami-yaki hamburger patty and a
soup version of its bestselling Schau
Essen sausage. The producer also
raised its profile at home by celebrat-
ing the success of its Hokkaido base-
ball club, which won the 2016 Japan
Series. And it is increasingly venturing
abroad. NH Foods plans to tap into
Malaysia’s large halal food market.
It has set up NHF Manufacturing, a
joint venture with Malaysian poultry
producer Lay Hong. The unit’s factory
on Pulau Indah island’s Selangor Halal
Hub awaits completion.KYODO/NEWSCOM