Why this CEO isn't sweating the port fight
The West Coast port dispute has forced automakers to slow U.S. factory output and ship vehicles by plane, but one company that makes tools for auto repair isn't sweating the labor fight. The slowdown has had only a minimal impact on the operations of Snap-On (SNA) because the company makes most of its products in the United States, Nicholas Pinchuk, chairman and CEO, told CNBC on Tuesday.
Read More Honda to slow US output due to West Coast ports dispute This is one industry that has kept employing workers at home, largely due to the complexity of the product line. Snap-On has 65,000 distinct products. "Part of the value creation we have is that our manufacturers and the people, the design engineers that are in the manufacturing, go right into the shops and figure out what will solve their problems," he said. While the company guarantees its products for life, growth remains robust because automobile technology keeps changing, Pinchuk said. "The number of engine codes have changed over 20 years from 50 to 5,000," he said. Read More What Americans want in self-driving cars The company's focus on supplying domestic repair shops is insulating it against the impacts of the port dispute today, but in the future, the international market will keep Snap-On growing, he said. The repair wave hasn't yet started in emerging markets, creating an opportunity as the many cars selling in China enter garages for service, he said.
