to manufacture tools in the newly opened Eastern Europe. Among 1991 acquisitions were Mosley-Stone,
a U.K. maker of paint brushes, rollers, and decorator tools; Nirva, a French manufacturer of closet systems;
and Sidcrome Tools, the leading maker of mechanics tools in Australia.
The following year brought Stanley a controlling interest in Tona a.s. Pecky, a major Czech manufacturer of mechanics tools.
The domestic area was not neglected, however. In 1992 Stanley acquired American Brush Co., Inc.,
manufacturer of paint brushes and decorator tools; LaBounty Manufacturing, Inc., a maker of large hydraulic tools;
Mail Media, a catalog marketer of precision tool kits consisting of Jensen Tools, Inc. and Direct Safety;
and Goldblatt Tool Co., which manufactured masonry, tile, and drywall tools.
These acquisitions helped Stanley enter another period of sales growth, as revenues increased each year (to record levels each year)
from 1992 through 1996, with the $2 billion sales mark reached for the first time in 1992 and $2.5 billion in 1994. Unfortunately,
earnings did not keep pace with sales, and instead bounced up and down during this period.
Starting in 1993--the year Stanley celebrated its 150th anniversary--
Ayers began making some restructuring moves in an effort to boost earnings.
That year the company's 23 divisions were streamlined into 11.
Ayers also sought to make selective divestments of units with low margins,
and in 1993 sold the franchise operations of Taylor Rental, then sold the company-owned outlets the following year.
Ayers embarked upon a more aggressive divestment strategy in July 1995 as part of the "Four by Four" program.
Over a four-year period Stanley sought, in addition to increasing revenues to $4 billion,
to save $400 million by reducing operating costs by $150 million and assets by $250 million.
In 1995 and 1996 Stanley exited from eight product categories; closed six factories, three distribution centers,
and two support facilities; and eliminated about 550 jobs.
In early 1997 the company completed the divestiture portion of "Four by Four" when it sold its garage-related operations--garage doors,
garage door openers, and gate operators&mdashø Whistler Corporation.
Stanley incurred 1995 charges of $85.5 million and 1996 charges of $47.8 million related to these restructuring moves.
To reach $4 billion in sales by the year 2000, Stanley had to increase revenues 10 percent a year. 1996 sales,
however, grew less than 2 percent, and Ayers decided early that year to retire at year-end.
Analysts quoted in Business Week felt that Stanley needed to bring someone in from the outside to shake things up and reinvigorate the company.
Stanley's board did just that when it hired John M. Trani as CEO and chairman at the beginning of 1997.
Trani had led the turnaround at General Electric Co.'s GE Medical Systems and had a reputation as a cost-cutter and tough leader.
He also had a great deal of experience in the acquisition of foreign companies; this background was likely to be put to use at Stanley,
which needed to beef up and improve the profitability of its non-U.S. operations
(as of 1996, 71.6 percent of sales were derived from domestic operations, and 84.6 percent of profits).
Trani wasted no time getting started on a possible Stanley turnaround.
In April 1997 the company announced a reorganization into a product management structure,
aimed at strengthening the Stanley brand, focusing more on customers, improving new product development, and enhancing efficiency.
The plan called for the formation of eight new product groups, which would be supported by centralized manufacturing, engineering, sales,
and service, and the creation of a new corporate marketing and brand development function.
Although the 1990s were rough years for Stanley, the company seemed poised for a renaissance as it approached a new century,
which would be the third for the famous Stanley brand.
Competition promised to remain fierce for the foreseeable future but the Trani-led Stanley appeared ready for the challenges ahead.
Principal Divisions: Stanley Tools; Stanley Mechanics Tools; Stanley Storage Systems;
Stanley Mail Media; Stanley Fastening Systems; Stanley Hydraulic Tools; Stanley Air Tools;
Stanley Hardware; Stanley Home Decor; Stanley Door Systems; Stanley Access Technologies.
Further Reading:
Chandler, Alfred D., The Visible Hand: The Managerial Revolution in American Business, Cambridge, Mass.: Belknap Press, 1977.
Davis, Donald Walter, The Stanley Works: A 125 Year Beginning, New York: The Newcomen Society in North America, 1969, p. 24.
Green, Hardy, "Once a Company Town, Always a Company Town," Business Week, September 27, 1993, pp. 28D--28J.
Jackson, Susan, and Tim Smart, "Will the GE Magic Work at Stanley?," Business Week, April 21, 1997, pp. 144, 148.
Leavitt, Robert Keith, Foundation for the Future: History of The Stanley Works, New Britain, Connecticut: The Stanley Works, 1951.
"Proud of Our Past: 150 Years of Growth Through Excellence at The Stanley Works," New Britain, Connecticut: The Stanley Works, 1993.
Rodengen, Jeffrey L., The Legend of Stanley: 150 Years of The Stanley Works, Fort Lauderdale, Florida: Write Stuff Syndicate, 1996.
"Stanley Tries the Faster Track," Business Week, November 5, 1966.
Uchitelle, Louis, "The Stanley Works Goes Global," New York Times, July 23, 1989, p. F1.
------, "Only the Bosses Are American," New York Times, July 24, 1989, p. D1.
Weiner, Steve, "How Do You Say 'Tape Measure' in Chinese?," Forbes, June 25, 1990, pp. 96, 99.
Welsh, Jonathan, "Stanley Works Picks GE Official as Chief in Apparent Bid to Boost Overseas Sales," Wall Street Journal, January 3, 1997, p. B3.
Source: International Directory of Company Histories, Vol. 20. St. James Press, 1998.