Industrial and construction supplies distributor Fastenal reported its October sales results on Nov. 5, showing renewed growth momentum following September’s slowdown.

The Big Picture

• October sales totaled $863.5 million, up 12.0% year-over-year and 4.6% from September. October had 22 business days, compared with 23 a year earlier and 21 in September.
• Average daily sales grew 17.1% year-over-year, accelerating from September’s 14.4% and August’s 16.6%. It was Fastenal’s 16th consecutive month of double-digit growth and its strongest gain since July 2022.
• Daily sales averaged $39.25 million, down just 0.1% from September, outperforming the normal seasonal decline of 1.8% by approximately 170 basis points.
• Daily sales were 18.2% above January, compared with the historical January-to-October increase of 8.7%.
• Foreign exchange reduced year-over-year growth by approximately 10 basis points.

Go Deeper

Below are October’s year-over-year daily sales growth rates, with September comparisons in parentheses.

By Geography

• United States — 82.9% of sales: +16.5% (+13.1% in Sept.)
• Canada/Mexico — 13.8%: +20.9% (+21.5%)
• Rest of world — 3.3%: +16.1% (+17.2%)

By Customer Usage

• Total direct materials — 40.1% of sales: +19.1% (+16.2%)
• Direct fasteners/hardware: +18.1% (+13.6%)
• Direct cutting tools & abrasives: +21.7% (+17.4%)
• Direct non-fasteners/hardware: +19.8% (+20.2%)
• Total indirect materials — 59.9% of sales: +16.0% (+14.3%)
• Indirect fasteners/hardware: +15.8% (+7.5%)
• Indirect safety: +14.0% (+15.3%)
• Other indirect materials, excluding fasteners/hardware and safety: +17.4% (+15.9%)

By Customer End Market

• Heavy manufacturing — 44.9% of sales: +22.8% (+20.3%)
• Other manufacturing — 31.7%: +14.8% (+12.9%)
• Non-residential construction — 8.5%: +18.3% (+9.6%)
• Other end markets — 14.9%: +7.4% (+8.4%)

By Customer and Channel

Contract customer growth accelerated to 20% from 18%, while non-contract growth doubled to 10% from 5%. FMI sales grew 16%, versus 14%, and eBusiness increased 15%, versus 14%.

Growth breadth held steady: 71.0% of Fastenal’s top 100 national accounts and 67.3% of in-market locations were growing, both unchanged from September.

Headcount

Fastenal ended October with 24,792 employees, up 0.5% sequentially and 1.0% year-over-year. Selling full-time equivalents totaled 15,445, up 0.7% from September and essentially unchanged year-over-year.

MDM Analysis

Fastenal’s October results ease any notion that September’s slowdown marked a sustained loss of momentum. Above-normal seasonal performance, faster manufacturing growth and a construction rebound suggest firmer demand across the company’s core markets. The recovery in non-contract customers is particularly encouraging because those accounts offer fewer opportunities for large-contract share gains.

Still, Fastenal’s growth includes pricing and company-specific execution; the monthly report does not isolate underlying market volume. For distribution executives, the signal is encouraging demand heading into year-end, with unevenness still evident in softer safety growth and other end markets.