Bloomberg Talks – Fastenal CEO Daniel Florness Talks Minnesota Unrest
Date: January 26, 2026
Host(s): Bloomberg
Guest: Daniel Florness, CEO of Fastenal
Episode Overview
This episode features Daniel Florness, CEO of industrial supply company Fastenal, discussing the recent unrest in Minnesota following a fatal shooting, the role of business leaders in times of crisis, and broader topics like the U.S. industrial economy, market outlook, supply chain shifts, tariffs, reshoring trends, and the coming impact of AI. Florness also reflects on his tenure and the unusual nature of the current economic cycle.
Key Discussion Points & Insights
1. Minnesota CEO Letter and Business Leadership in Crisis
- Context: Over 60 CEOs from Minnesota-based companies published an open letter calling for de-escalation after a fatal shooting involving immigration agents.
- Florness’s Involvement and Perspective:
- He was not aware of the letter prior to its release due to Fastenal being based outside the Twin Cities (02:02).
"We're outstate Minnesota. We're about two and a half hours from the Minneapolis St. Paul market...it's a pretty tight knit group up in the Twin Cities and was not aware of it going out." — Dan Florness (02:02)
- He indicates he would have signed the letter if asked (02:33).
"Yeah, I would have signed that." — Dan Florness (02:33)
- He was not aware of the letter prior to its release due to Fastenal being based outside the Twin Cities (02:02).
- Leadership Responsibility:
- Florness advocates for calm and depoliticizing situations, drawing parallels to handling the Covid crisis (03:00).
"As a leader, one of our tasks are to create some calm in the air...Let's try to dial the heat down and focus on what we're trying to accomplish, not how we can see who can be the most boisterous." — Dan Florness (03:00)
- Florness advocates for calm and depoliticizing situations, drawing parallels to handling the Covid crisis (03:00).
2. Fastenal’s Market Performance and Economic Outlook
- Mixed Market Conditions:
- ISM Purchasing Managers Index has been below 50 in 36 of the last 38 months, indicating a weak industrial backdrop (04:11).
"The economy is not giving us any lift. We are getting good traction in the marketplace...That's really an exercise of taking market share more than the wind is to our backs." — Dan Florness (04:11)
- ISM Purchasing Managers Index has been below 50 in 36 of the last 38 months, indicating a weak industrial backdrop (04:11).
- Sector “Green Shoots”:
- Fastenal's end-of-year performance is typically weak, but there are anecdotal signs of industrial production improvement (05:01).
- Data centers are highlighted as a major growth area, with demand personally confirmed in visits (05:01–05:55).
"If it's a business that's linked to certain industries and data centers...their business was on fire and 70% of their activity was around data centers." — Dan Florness (05:01) "You saw it firsthand. It's real." — Host 1 (05:49) "It's real. It's real." — Dan Florness (05:55)
3. Supply Chain, Tariffs, and Sourcing Shifts
- Tariff Impacts and Sourcing Diversification:
- Tariffs have driven Fastenal and the U.S. industry to diversify sourcing beyond China, expanding into Thailand, India, and other locations (08:00).
"Most of the fasteners in this country...come from northern Asia, China primarily. Obviously, huge impacts. For us...we've been actively expanding our ability to import fasteners...Today we have personnel in Bangkok, we have personnel in India..." — Dan Florness (08:00)
- Tariffs have driven Fastenal and the U.S. industry to diversify sourcing beyond China, expanding into Thailand, India, and other locations (08:00).
- Reshoring and Customer Trends:
- There’s less talk of manufacturing leaving the U.S., with some customers expanding locally to serve regional markets more efficiently (09:11).
"I hear less about stuff leaving than maybe I would have, you know, 10 years ago...A lot of it is, folks are getting closer to where the end customer is..." — Dan Florness (09:11)
- There’s less talk of manufacturing leaving the U.S., with some customers expanding locally to serve regional markets more efficiently (09:11).
4. Industry Pricing Power
- Compared to the Past:
- Fastenal’s ability to raise prices is constrained by customer type and product use; production-centered customers are more price sensitive (06:48).
"The one barrier is the size of the customer, the nature of the products...their price sensitivity is different than if it's MRO and they're buying...$100 of this and $100 of that." — Dan Florness (06:48)
- Fastenal’s ability to raise prices is constrained by customer type and product use; production-centered customers are more price sensitive (06:48).
5. Reflections on Economic and Informational Change
- On Today’s Cycle:
- Florness finds the economic cycle unusual due to the omnipresence of information and political noise (10:38).
"In years past there was so much of this political stuff that went on, but...you were oblivious to and you just, you went around about your life. Now everybody hears about everything when it happens. So that's just a lot more noise." — Dan Florness (10:38)
- Florness finds the economic cycle unusual due to the omnipresence of information and political noise (10:38).
- On AI and Data:
- Discusses receiving a detailed, AI-generated industry report; sees AI’s efficiency in processing large information volumes and its impact accelerating in the next decade (11:37–12:14).
"He punched in a bunch of questions and he came back with a 29 page report on the data center industry...it's actually pretty accurate..." — Dan Florness (10:38) "The ability to improve the visibility for folks sourcing all that stuff is an incredible efficiency tool." — Dan Florness (12:14)
- Discusses receiving a detailed, AI-generated industry report; sees AI’s efficiency in processing large information volumes and its impact accelerating in the next decade (11:37–12:14).
Notable Quotes & Memorable Moments
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On Business Leaders’ Role in Social Tension:
"As a leader, one of our tasks are to create some calm in the air...Sometimes it's a case of, you know, if you're around a bunch of people that, that are high at risk...put a mask on...Let's try to dial the heat down and focus on what we're trying to accomplish..." — Dan Florness (03:00)
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On Supply Chain Diversification Post-Tariffs:
"We've been actively expanding our ability to import fasteners, because there's still not a lot of domestic production...we have personnel in Bangkok, we have personnel in India. And that's where all of our growth and movement of sourcing personnel has occurred..." — Dan Florness (08:00)
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On the Impact of AI and Industry Data:
"He punched in a bunch of questions and he came back with a 29 page report on the data center industry...There's stuff in there I can pick apart, but it's pretty good." — Dan Florness (10:38)
"The ability to improve the visibility for folks sourcing all that stuff is an incredible efficiency tool." — Dan Florness (12:14)
Key Timestamps
- 00:02–01:03: Context of the Minnesota CEO letter and unrest
- 02:02: Florness on letter and local CEO community
- 03:00: Leadership in social/political crises
- 04:11–05:55: Industrial market outlook, data centers, economic “green shoots”
- 06:48: Company pricing dynamics and inflation
- 08:00: Tariffs, Asian sourcing, and supply chain agility
- 09:11: Customer reshoring and production localization
- 10:38: Unique aspects of today’s business and information cycle
- 11:37–12:14: AI’s increasing role in industry and efficiency
Conclusion
Daniel Florness gives an honest, practical perspective on business leadership amid social unrest, offers insight into the realities of today's industrial markets, and discusses how supply chains and data are shifting in a volatile, information-heavy environment. He points to both competitive pressure and technological evolution—like the expansion of AI and rapid data analysis—as defining characteristics of the current and coming decade for manufacturers and suppliers.