Danaher article about the company

Jay H 237 · Oct 25, 2008

Here's an interesting article I found that goes into what Danaher is doing. It includes Craftsman which is "the laggard in Danaher's hand-tool division" according to the article. Danaher's tool division is the smallest part of the company now.

Here's the article,
http://www.washingtonpost.com/wp-dyn/content/article/2006/01/29/AR2006012900521_pf.html

bchee · Oct 25, 2008

interesting article. Danaher is so broad, they do a little of everything

speed bump · Oct 25, 2008

Makes me want to aviod buying Danaher stuff as they are more dedicated to being like Wal-Mart than to actually building good stuff.

Fedwrench · Oct 25, 2008

At least they realize at the top that making Craftsman tools isn't as sweet of deal as it once was, just like the people that use the tools can also see a difference sine the Kmart-Sears merger. :wtf:

Merkava_4 · Oct 25, 2008

But struggling Sears has cut back its inventory of tools, and analysts at Wachovia Corp. now call Craftsman the laggard in Danaher's hand-tool division. Growth in the division comes from professional-grade tools that are sold directly to mechanics and from increasing sales of hand tools to the Lowe's home-improvement chain.

Does anyone know what the hell "laggard" means?

a390st · Oct 25, 2008

Something that lags behind.

Craftsman is lagging behind Danaher's other divisions that are in its class.

GeorgeH · Oct 25, 2008

Merkava_4 said:
Does anyone know what the hell "laggard" means?

Main Entry: 1lag·gard
Pronunciation: \ˈla-gərd\
Function: adjective
Date: 1702
: lagging or tending to lag : dilatory
— lag·gard·ly adverb or adjective
— lag·gard·ness noun

Main Entry: 2laggard
Function: noun
Date: 1705
: one that lags or lingers

old salvage · Oct 25, 2008

Maybe its time for Sears to find a new mfg for Craftsman.

PowderKeg · Oct 25, 2008

old salvage said:
Maybe its time for Sears to find a new mfg for Craftsman.

Be careful what you wish for, as Stanley may be the only other quasi-US company that could handle the volume and meet the low price point...

krusty the clown · Oct 25, 2008

PowderKeg said:
Be careful what you wish for, as Stanley may be the only other quasi-US company that could handle the volume and meet the low price point...

they already have a working relationship with SK so i suspect thats the direction they would turn.

Fedwrench · Oct 25, 2008

krusty the clown said:
they already have a working relationship with SK so i suspect thats the direction they would turn.

I'm not sure if SK could deliver high number count tool sets as cheaply as Danaher. I think it's more of Craftsman tools aren't selling as well as they used to so, they are lagging behind other Danaher brands such as Gearwrench. Although with the economy the way it is combined with all of the automobile dealerships closing, I'm thinking more brands than Craftsman sales will be slowing too.

Diesel-Mech · Oct 25, 2008

Anyone else notice the age of this article? Almost 2 years old....I cant help but wonder what effect the current economy and marketplace has had on Danaher.

GearWrench Brand · Oct 26, 2008

Per our latest public disclosure on Q3 earnings, we are holding up well given the turbulence we are all seeing in the marketplace. GearWrench had a huge win with Advance Auto and Armstrong had an even bigger contract win to supply the US Military with the General Mechanics Tool Kit (GMTK). Our Asia division (SATA) continues to grow leaps and bounds.

No doubt there there are serious challenges here, but we've got some good news too.

Steve

speed bump · Oct 26, 2008

GearWrench Brand, this article disturbs me becuase you seem to put very little emphasis on the quality of what you manufacture with a mantra like "better, faster, cheaper" care to comment as to why quality seems to not matter to you.

philw · Oct 26, 2008

Speed bump,
I think the "better, faster, cheaper" isn't meant to have a negative effect on quality.
The "better" part I would think refers to improving quality, at least partially.
I think you could say the same about Victorinox (Swiss Army) pocket knives. They have been able to do "better, faster, cheaper" and still maintain top notch quality.

olds88 · Oct 26, 2008

The fact that Danaher peddles Chinese made Gearwrench branded tools as premium tools turns me off to Matco.

krusty the clown · Oct 26, 2008

olds88 said:
The fact that Danaher peddles Chinese made Gearwrench branded tools as premium tools turns me off to Matco.

it's not just the GW labeled tools that are made in china on the matco truck.

reversegear · Oct 27, 2008

GearWrench Brand said:
Per our latest public disclosure on Q3 earnings, we are holding up well given the turbulence we are all seeing in the marketplace. GearWrench had a huge win with Advance Auto and Armstrong had an even bigger contract win to supply the US Military with the General Mechanics Tool Kit (GMTK). Our Asia division (SATA) continues to grow leaps and bounds.

No doubt there there are serious challenges here, but we've got some good news too.

Steve

Danaher stock has taken a hit recently, but I'd say it's held up fairly well in the recent carnage. Here's a question: Buy Danaher now at 54, or GE at 18?

Steve, where online can we see what Gearwrench products are being sold at Advance Auto? I looked at their website and couldn't find anything.

Chief · Oct 27, 2008

This is from the 2007 annual report

Mechanics’ Hand Tools. The mechanics’ hand tools business
consists of several companies that do business as the
Danaher Tool Group (“DTG”), and Matco Tools (“Matco”).
DTG is one of the largest worldwide producers of general
purpose mechanics’ hand tools, primarily ratchets, sockets,
and wrenches, and specialized automotive service tools for
the professional and “do-it-yourself” markets. DTG has been
the principal manufacturer of Sears Holdings Corporation’s
CRAFTSMAN line of mechanics’ hand tools for over 65 years.Matco manufactures and distributes professional tools,
toolboxes and automotive equipment, through independent
mobile distributors, who sell primarily to professional
mechanics under the MATCO brand. Professional and do-ityourself
mechanics typically select tools based on quality,
brand, price, relevant innovative features and the other factors
described under “—Competition.”

Principal supplier for Craftsman for 65 years? I had no idea.

Givl Reggin · Oct 27, 2008

speed bump said:
Makes me want to aviod buying Danaher stuff as they are more dedicated to being like Wal-Mart than to actually building good stuff.

Me too.

It's interesting to note that the words "quality" and "customer service" do not appear anywhere in that article.

It would have given me a warm and fuzzy to have read 'We strive to provide the best quality tools to be found anywhere and we're constantly working on ways to improve our customer service.'

But, instead what I read was 'Danaher has proved its willingness to walk away from potential deals that don't meet its standards for profitability, return on investment and other financial goals." Sounds like a good old case of greed to me.

rudiger · Oct 27, 2008

Chief said:
"DTG has been
the principal manufacturer of Sears Holdings Corporation’s
CRAFTSMAN line of mechanics’ hand tools for over 65 years.”

Principal supplier for Craftsman for 65 years? I had no idea.

According to the June 18, 1991 edition of The Baltimore Sun, the principal manufacturer of Craftsman tools prior to 1992 was Stanley:

"We've decided to consolidate the production of those types of tools," said Mr. [Greg Rossiter], noting that, after the agreement takes effect next January, Sears will cease buying Stanley brand mechanics' hand tools as it has in the past.

He said that by having Danaher as its sole source of Craftsman mechanics' tools, the retailer will have more control over the production of these tools, including specifications.

olds88 · Oct 27, 2008

krusty the clown said:
it's not just the GW labeled tools that are made in china on the matco truck.

I believe it. I don't remember seeing much stuff branded Gearwrench on the Matco truck, but I've looked at Gearwrench products in Sears and Advance, and while the chrome is very shiny, I prefer to buy US made products when I can. If I want a new television, I probably don't have much of a choice, but with tools I can and do buy US made.

krusty the clown · Oct 27, 2008

rudiger said:
According to the June 18, 1991 edition of The Baltimore Sun, the principal manufacturer of Craftsman tools prior to 1992 was Stanley:
"We've decided to consolidate the production of those types of tools," said Mr. [Greg Rossiter], noting that, after the agreement takes effect next January, Sears will cease buying Stanley brand mechanics' hand tools as it has in the past.

He said that by having Danaher as its sole source of Craftsman mechanics' tools, the retailer will have more control over the production of these tools, including specifications.

although they did scource some tools from stanley most were supplied by moore drop forge. moore was bought by easco, eventually danaher purchased that company.

old salvage · Oct 27, 2008

krusty the clown said:
although they did scource some tools from stanley most were supplied by moore drop forge. moore was bought by easco, eventually danaher purchased that company.

Yup.
I guess they feel it gives them braggin rights too. Just like Irwin likes to say they've been making Vice Grips since 1926.

Danaher article about the company

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