Strategic Advantage

By design, Fastenal has set up distribution centers and store locations close to our customers. Each distribution center services stores in an approximate 500-mile radius. Stores within that radius are generally serviced by a single distribution center, but our inventory is available for transfer from any distribution center nationwide. By utilizing company-owned and operated semi-trucks and trailers, we are able to move product faster than any other distributor in the country, which allows our store inventory content to be tailored to the needs of local customers.

Fastenal actively competes against national, regional and local firms with diverse capabilities as well as manufacturers who sell their products direct.

To our advantage, the industrial distribution market is very fragmented. Fastenal currently has approximately 3% of the market share. This means that there is unlimited market potential and growth opportunity for our new leaders.

Our goal is to become the best industrial construction distributor in each market that we serve. This is the future that we envision and we are working to achieve this by:

• Opening new stores to take our current 2,500+ stores to over 3,000
• Continuing to expand our products and services offered to our customers
• Developing innovative sales and marketing approaches

With the addition of new product offerings and more efficient ways for the customer to receive their product, we believe we are positioned to become the best industrial and construction distributor in each market we serve.

 The top 50 industrial distributors together own less than 30% share of our estimated $140 billion market.

 Fastenal's market share is less than 3%. The potential for growth is tremendous.