Bloomberg Talks Fastenal CEO Dan Florness Talks Earnings
Oct 13, 2025
Dan Florness, CEO of Fastenal, dives into the company's recent disappointing earnings and the complexities of pricing strategy. He explains how they managed price increases to remain growth-focused amid tariff uncertainties. The discussion also covers efforts to diversify supply chains across global hubs like China and Mexico to mitigate risks. Florness highlights the surprising growth in data center construction, fueled by AI's impact, even as industrial demand remains sluggish. His insights into navigating this fluid market cycle are both revealing and thought-provoking.
AI Snips
Chapters
Transcript
Episode notes
Growth Despite Pricing Headwinds
- Fastenal delivered double-digit growth despite investor disappointment over pricing trends.
- CEO Dan Florness says the company aims to be price-cost neutral and prefers growth over aggressive price hikes.
Negotiate Prices With Alternatives First
- Discuss price changes with customers and seek lower-impact alternatives before raising list prices.
- Fastenal prefers smaller increases or product substitutions to preserve growth and customer relationships.
Tariffs Influenced Pricing All Year
- Tariffs have affected Fastenal since early Q2 and the company has incrementally raised prices with customers.
- Florness highlights active monitoring and frequent internal updates on tariff impacts to guide pricing.