Competitors Matco and Mac Tools manufacture less than 50% of the tools they sell, limiting quality control compared with Snap-on, which produces around 70% of the tools sold by its franchised dealers.
Snap-on is developing a midtier brand to capture additional business from customers who purchase separate tool sets for routine tasks outside of the repair shop.
The company's high-margin diagnostics and information business continues to benefit from the transition toward increased vehicle computing power. Read more
Snap-on has significant production capacity in Europe, where labor unions and consumer loyalty toward goods manufactured domestically complicate efforts to remove excess capacity.
Rising steel prices can threaten Snap-on's profitability in the near term, while earnings at its franchisees suffer from increases in fuel costs.
The company's U.S. dealer count fell precipitously in middle of the last decade. Although it appears to have stabilized, the inability to expand the network diligently over the long run could weigh on top-line growth and jeopardize Snap-on's market share. Read more
Nicholas Pinchuk took the reins as CEO in December 2007 and added the title of chairman in April 2009 following the retirement of Jack Michaels. With a nod to his predecessor's goals, Pinchuk has implemented a lean-manufacturing approach, and reduced Read more
Snap-on manufactures and sells tools, equipment, diagnostics, repair information, and systems solutions primarily for independent vehicle repair centers, but also for new Read more