Fed official visits Wisconsin toolmaker to study manufacturing success
7 reported
The president of the Chicago Federal Reserve Bank, Austan Goolsbee, visited Snap-on headquarters in Kenosha, Wisconsin, to learn about the company’s manufacturing approach. Snap-on has been making high-end tools for auto mechanics for over a century and has enjoyed steady growth and profitability despite challenges facing U.S. manufacturers. The company makes 85,000 different tools tailored to specific needs of people fixing cars, airplanes, or rocket ships. Snap-on produces 80% of the tools it sells in the U.S. domestically, insulating it from tariffs. The company relies on thousands of franchisees who visit nearly a million neighborhood mechanics weekly in custom vans. Goolsbee noted that customization allows Snap-on to charge a premium and continue manufacturing in America.
What’s reported
Snap-on has been making high-end tools for auto mechanics for over a century.
The company makes 85,000 different tools, each tailored to a specific need.
Snap-on produces 80% of the tools it sells in the U.S. domestically.
The company has 15 U.S. factories that change models multiple times each day.
Snap-on relies on thousands of franchisees who visit nearly a million neighborhood mechanics weekly.
CEO Nick Pinchuk stated the company deliberately avoids selling to do-it-yourself customers to protect brand cachet.
Austan Goolsbee is president of the Chicago Federal Reserve Bank.
Key figures
Nick Pinchuk, CEO of Snap-on
Austan Goolsbee, president of the Chicago Federal Reserve Bank
Sources: NPR
