With fiscal 2010 sales of $1.89 billion, Applied Industrial Technologies (NYSE: AIT) is one of North America's largest independent distributors of bearings, power transmission components, hydraulic components and systems, pneumatic components and systems, industrial rubber products, linear components, tools, safety products, material handling products, janitorial supplies and general maintenance products. Applied also provides customized mechanical, fabricated rubber and fluid power shop services, as well as storeroom management and maintenance training services.
| Type | Public (NYSE: AIT) |
|---|---|
| Founded | 1923[1] |
| Founder(s) | Joseph M. Bruening |
| Headquarters | Cleveland, Ohio |
| Number of locations | 470 facilities |
| Area served | 48 U.S. states, 6 Canadian provinces, Puerto Rico and Mexico. |
| Key people | David L. Pugh, Chairman & Chief Executive Officer Benjamin J. Mondics, President & Chief Operating Officer |
| Products | Bearings Power Transmission Fluid Power Industrial Rubber General Maintenance |
| Revenue | US$1.89B (FY 2010)[2] |
| Net income | US$65.9M (FY 2010)[2] |
| Total assets | US$892M (FY 2010)[3] |
| Total equity | US$555M (FY 2010)[3] |
| Employees | 4,700 |
| Website | http://www.applied.com |
Contents |
Applied Industrial Technologies supports Maintenance Repair Operations (MRO) and select Original Equipment Manufacturer (OEM) markets throughout North America.[4]
Customers represent a wide range of industries including industrial machinery, forest products, food and beverage, primary metals, aggregate, mining, high tech, and government. Applied supports government customers at the federal, state and local levels.
Applied Industrial Technologies offers more than 4 million specific line items.[5] Major product categories include:
• Adhesives & Sealants
• Bearings
• General Industrial Products
• Hand, Power & Analytical Tools
• Hydraulic Products
• Industrial Chemicals & Coatings
• Industrial Hose & Fittings
• Janitorial Products
• Linear Motion Components
• Lubrication Products & Equipment
• Material Handling
• Motors & Controls
• Pneumatic Products
• Power Transmission Components
• Safety Products
• Seals & O-rings
• Welding Supplies
Applied Industrial Technologies is an authorized distributor for more than 2,000 manufacturers. Notable manufacturer-partners include 3M, Craftsman (tools), Goodyear Tire and Rubber Company, Baldor, SKF, Martin Sprocket & Gear, Timken Company, Ingersoll-Rand, Loctite, Parker Hannifin, Eaton Corporation, Sherwin Williams, Renold Jeffrey, GOJO, Rust-Oleum, DeWALT, Falk Corporation, LPS, Enerpac, Armstong, NSK Ltd., THK, Dow Corning, CRC, Emerson Industrial Automation, Rexnord, U.S. Motors, PowerFlare, Thomson and Sumitomo.
Hose Shops
Applied Industrial Technologies has been named a Star distributor by Goodyear Engineered Products.[6] Goodyear’s Star program establishes standardized hose, coupling and crimping protocols for industrial hose. Under the Star program, Applied operations at nine hose shops have been validated for using consistent products, techniques and processes.
Hose shop services include industrial and hydraulic hose cutting, crimping, coupling, assembly, banding, clamping, tagging, kitting and testing. All hose shop locations have a wide selection of hose and fittings in stock.
Rubber Services
Applied supplies conveyor belting and offers these complementary services: bucket installation, cleat work (hot and cold bond), hole punching, lacing, rubber and ceramic pulley lagging, sheet rubber cutting, skirtboard fabrication, slitting, v-guiding (hot and cold bond) and vulcanizing.[7]
Repair Services
Applied Industrial Technologies offers multiple levels of repair services, from minor repair to full rebuild.[8] Areas of repair work include:
• Ball Screw Repair
• Bearing Repair
• Circuit Board Repair
• Conveyor Belt Installation and Repair
• Cylinder Repair
• Electric Motor Repair
• Electrical Component Repair
• Gear Reducer Repair
• Hydraulic and Pneumatic Part Repair
• Live Center Repair
• Mechanical Part Repair
• Reducer Repair
• Servo Motor Repair
• Slide Repair
• Spindle Repair
• U-Joint and Coupling Shaft Repair
Fluid Power Shop Services
Through a network of fluid power subsidiary locations (see below), Applied Industrial Technologies offers these services:[9]
• Repair hydraulic pumps, motors, valves and cylinders
• HVOF system – An environmentally safe, thermal spray chroming process for hydraulic cylinder rods
• Custom design and manufacture of hydraulic power units, electro-hydraulic and electro-pneumatic control packages, and test stands
• Custom hydraulic manifolds
• Custom filtration systems
• Integration of fluid power systems with electronic controls and automation applications
• Fluid sampling and analysis
• Hydraulic systems retrofits
• Clean room capabilities
• Lube oil systems
• Many locations are Eaton Certified Warranty Centers and/or Vickers QA Centers and Warranty Stations
Inventory Management
AppliedSTORE is a tracking system that allows customers to scan and track inventory, and enable automatic product replenishment.[10]
Technical Training
Applied Industrial Technologies conducts maintenance training courses, called MaintenancePRO, around the country.[11]
The Applied network encompasses approximately 470 facilities, seven distribution centers, and more than 40 specialty repair and rebuild shops. The corporate headquarters is located in Cleveland, OH.[12]
Canada
Headquartered in Saskatoon, Saskatchewan, Applied Industrial Technologies, Ltd., a wholly owned subsidiary of Applied Industrial Technologies, operates facilities throughout six Canadian provinces. The company operates under the names Applied Industrial Technologies, HyPOWER Systems, PRO-Hydraulique and PV Hydraulique.
Mexico
Applied operates 15 power transmission products service centers, five fluid power service centers, and two hose centers under the names Applied Mexico, S.A. de D.V. and VYCMEX, S.A. de D.V.
Puerto Rico
Rafael Benitez Carrillo, Inc., a wholly owned subsidiary of Applied Industrial Technologies, operates several locations throughout Puerto Rico.
Fluid Power Subsidiaries
The following subsidiary locations of Applied provide fluid power components, systems and services such as repair, rebuild and custom design:
• A & H Fluid Technologies - Alabama, California (northern), Colorado, Florida (western), Georgia, Idaho, Mississippi, Montana, Nevada, North Carolina, North Dakota (western), Oregon, South Carolina, South Dakota (western), Tennessee, Utah, Washington, Wyoming
• AirDraulics - Tennessee
• Air-Hydraulic Systems - Minnesota, Nebraska, North Dakota, Wisconsin
• Bay Advanced Technologies - California, Texas
• Carolina Fluid Components - Georgia, North Carolina
• Dees Fluid Power - Florida, Maryland, Virginia
• DTS Fluid Power - Illinois, Michigan
• Engineered Sales, Inc. - Arkansas, Illinois, Missouri
• Elect///Air - California
• FluidTech - Kansas
• Hydro Air Hughes - Connecticut, Maine, New York, Pennsylvania, Rhode Island, Vermont
• HyPower - Western Canada
• Kent Fluid Power - California, Washington
• Pacific Air Technology - California
• Power Systems - Iowa, Minnesota, South Dakota, Wisconsin
• PRO-Hydraulique/PV Hydraulique - Eastern Canada
• Spencer Fluid Power - California, Idaho, Montana, Oregon, Utah, Washington, Wyoming
• VYCMEX - Mexico
Applied claims to have won numerous awards from suppliers, leading publications and governmental agencies.[13] Recent awards include:
• Forbes Magazine- Platinum 400 List of Best Big Companies in America - 2004–2009
• Selling Power - Named to List of 50 Best Companies to Sell For in the U.S. - 2008
• NorthCoast 99 - Named One of the Best Workplaces in Northeast Ohio - 2008
• InformationWeek 500 - Named to list of Most Innovative Users of Technology - 2000–2007
• HR Chally Group - Customer-Rated World Class Sales Winner - 2006
• Coalition for Government Procurement:
Excellence in Partnership Award - Most Valuable Schedule Contractor, Industry – 2008
Excellence in Partnership Award - Most Successful Newcomer - 2006
• General Services Administration (GSA) - Large Business Contractor of the Year - 2007
• AK Steel - Supplier of the Year - 2008
• AbitibiBowater - Supplier Recognition Silver Award - 2007
• Vulcan Materials Company - Platinum Alliance Supplier Award - 2008
David L. Pugh, Chairman & Chief Executive Officer
Benjamin J. Mondics, President & Chief Operating Officer
Tom E. Armold, Vice President – Marketing and Strategic Accounts
Todd A. Barlett, Vice President – Acquisitions and Global Business Development
Fred D. Bauer, Vice President – General Counsel & Secretary
Michael L. Coticchia, Vice President – Chief Administrative Officer
Mark O. Eisele, Vice President – Chief Financial Officer & Treasurer
Jeffrey A. Ramras, Vice President – Supply Chain Management
Richard C. Shaw, Vice President – Communications and Learning
Daniel T. Brezovec, Corporate Controller
Jody A. Chabowski, Assistant Controller
Alan M. Krupa, Assistant Treasurer
Joseph M. Bruening founded Applied Industrial Technologies, then called the Ohio Ball Bearing Company, in 1923.[14] First year sales totaled $82,000. Over the next few decades, new branches opened and sales rose steadily.
In 1953, the company was renamed Bearings, Inc. As numerous acquisitions were made (Dixie Bearings, Inc., King Bearing, Inc., Mainline Industrial Distributors, Inc.), the company’s product and service offering grew. Bearings, Inc. became an authorized distributor for a wide selection of bearings, but also power transmission supplies, fluid power components and industrial rubber products.
In 1995, Bearings, Inc. recorded more than a billion dollars in sales for the first time.
Major acquisitions were also made in 1996 (Engineered Sales, Inc.) and 1997 (Invetech Company (parent company of Detroit Ball Bearing, American Bearing and Power Transmission, Moore Bearing, Kentucky Bearing Service and Hewitt Transmission)).
The company’s name was changed to Applied Industrial Technologies in 1997. The new name was intended to better reflect the company’s product assortment and capabilities.
Since 1998, Applied has continued to make acquisitions, expanding further in the U.S. (Minnesota Bearing Company, Cincinnati Transmission) but also increasing its presence in Puerto Rico (Rafael Benitez Carrillo), Mexico (Baleros Industriales, S.A. de C.V., Rodamientos y Bandas de la Laguna, S.A. de C.V., VYCMEX S.A. de C.V., Suministros Industriales Enol, S.A. de C.V.) and Canada (Bearing & Transmission, B & T Rubber, HyPOWER Systems, Industrial Equipment Co. Ltd., Groupe GLM,). Through acquisitions (Spencer Industries, Inc., Bay Advanced Technologies, Carolina Fluid Components, DTS Fluid Power, FluidTech, Hughes HiTech, Hydro Air and Power Systems), Applied has also grown its offering of fluid power products and services.