As they make progress on a multiyear, $2 billion cost-cutting program, Stanley Black & Decker Inc. executives are also sowing seeds for some future growth.
Speaking after they reported Connecticut-based Stanley Black & Decker’s fourth-quarter results, President and CEO Don Allan Jr. and his team outlined plans to this year invest roughly $75 million more than in 2023 in product development and marketing efforts. CFO Pat Hallinan said most of those funds will be dedicated to the company’s unit making tools and outdoor products while its industrial group, which makes fasteners and storage cabinets among other things, also will receive some growth capital.
The goal, Hallinan told analysts on a Feb. 1 conference call, is to sustain the growth prospects of the company’s DeWalt, Craftsman and Stanley brands even as their parent company pushes ahead with a wide-ranging plan to close some factories and overhaul its supply chain.
“We are really focused on the long-term growth of this business and we’re going to be working hard as a leadership team and as an organization to preserve those investments even if the macro creates a bit more headwind than we’re expecting,” Hallinan said. “We’re not going to just completely collapse ‘24 investment at the risk of longer-term brand health.”