Bloomberg Talks Fastenal CEO Daniel Florness Talks US Manufacturing
Jul 14, 2025
Dan Florness, CEO of Fastenal and expert in the supply chain industry, discusses the current state of US manufacturing. He details challenges like subdued demand and a downturn since late 2022. Yet, there's hope with signs of recovery in sectors like energy and data centers. Florness also dives into the impact of tariffs on sourcing, highlighting reliance on Chinese suppliers, and the effects of new legislation on capital investment. Innovative strategies, including investments in technology, aim to enhance supply chain efficiency despite rising import costs.
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Industrial Economy Stabilizing
- The US industrial and manufacturing economy remains sluggish with customers' production activity subdued.
- Stability has returned but at a lower level than two years ago, allowing inherent growth to show.
Emerging Growth Sectors
- Some green shoots of growth appear in energy, data centers, warehousing, and government sectors.
- Growth in government is partly a result of Fastenal stepping in during COVID supply chain disruptions.
Tariff Impact on Supply Chain
- Tariffs since 2018 forced Fastenal to diversify suppliers rather than fully reshoring production.
- Economics and equipment lead times still make domestic manufacturing challenging.