Fastenal Company (FAST)

Fastenal sells fasteners and consumables by placing stock inside the customer's own premises.

The difference from ordinary distribution is the presence model: the company installs vending machines and mini-stores inside a plant, from which a worker takes what is needed while consumption is recorded automatically. That removes procurement from the customer and makes switching inconvenient.

Revenue follows industrial production directly: the more shifts and output, the more gloves, drill bits and fasteners are consumed. Its trend is therefore often read as a barometer of American manufacturing.

The model requires many locations and staff, so margins depend on route density. Risks: an industrial downturn, steel prices and competition from online retail. Fastenal pays a dividend and periodically makes special distributions.