Prospect Fastener: 40 Years of Value

The Industry's Most Respected Distributor of Retaining Rings, Clamps, and more celebrates a milestone anniversary

Forty years ago, Richard W. Pratt made a decision that would not only pave the way for a thriving family-owned business, but also redefine what it means to be a distributor in the fastener industry. A classic fork in the road for a driven entrepreneur: stay on as an employee or to break out on his own.

In 1982, fastener distributors mostly followed the same playbook: sell in bulk, and don’t waste time on small orders. Such was the case for Pratt’s (then) employer, who imported 90% of its product line – and only sold by the pallet. For most of the previous ten years Pratt had climbed the ladder there, gaining experience in administration, sales, imports, and logistics. Despite promoting him to General Manager, the company’s ownership held him at arm’s length. The reason? He wanted to try a new business model – one that took on a higher volume of smaller orders that he was convinced would pay dividends. If Richard W. Pratt was going to fill this niche by breaking down bulk lots and holding more inventory, he’d have to start on his own, from scratch.

And so, with a degree from University of Illinois and over a decade of experience under his belt, he partnered with his wife Marie to lease 2,500 sq. ft. of warehouse space in Des Plaines, Illinois. This was the very first headquarters of Prospect Fastener Corporation, an all-in gambit by the Pratts to build a distribution business by offering what fastener consumers needed most: Value.

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Richard and Marie (who joined the company full-time from the onset) hit the ground running. Their vision was clear; Prospect Fastener would not be just another revolving door for pallets of imported products. From day one, the company would stock domestically made fasteners from only the most respected manufacturers. The Pratts would hold a lot of inventory, so that customers could buy what they needed – in quantities that made sense. With three young kids in school, and their nest egg invested in Prospect Fastener, Richard and Marie bet the farm that customers would turn out.

They were right.

Word quickly spread that Prospect Fastener was selling smaller quantities of top-quality retaining rings and other items, all while ensuring availability for future orders. Using analog scales and elbow grease, the company turned bulk lots into value-added bundles. Manufacturers also saw immediate returns, as Pratt’s new business model attracted a tidal wave of interest. By 1988, Rich and Marie had added more employees, purchased a computer, and relocated to a facility with 10,000 sq. ft. of space.

By the early 1990s, Prospect Fastener was on its way to becoming one of the most respected fastener distributors in the United States. As their capacity grew, so did the need to navigate the complex demands of bigger accounts. While never losing sight of the needs of smaller customers, Rich and Marie knew that they needed help adding value on a larger scale. They wouldn’t have to look further than their own sons to start mapping out the company’s future.

Rich Pratt Jr. and Ryan Pratt had both recently graduated from Bradley and Ball State, respectively. Within the span of two years, each had joined the family business. Their skills proved complementary to each other’s, and vital for growth. Rich Jr. deployed his organizational acumen to help Prospect Fastener become an ISO-certified company. Ryan implemented a new packaging system which allowed for customization and significant improvements in efficiency. Marching through the next decade as a true family business, Prospect Fastener had become everything that Richard W. Pratt had envisioned, and more.

By the turn of the new millennium, the company found itself moving into its current location – a 32,000 sq. ft. facility in Wauconda, Illinois. The new space allowed for a much-needed expansion of staff, equipment, and physical capacity. Now Vice Presidents for the organization, Rich Jr. and Ryan had become essential to Prospect Fastener’s continued success. Under their guidance, new partnerships and product line expansions would lay the groundwork for profitability and market dominance throughout the next decade:

• In 1999 Prospect Fastener embarked on a venture with KMC Stampings, stocking and selling their clamp products; ones that have developed into their second largest product line to date.

• In 2005, Rotor Clip company proposed the RotorExpress Program, through which they would refer customers to a distributor - with the understanding that the customer would be supplied Rotor Clip products only. Prospect Fastener was the first distributor offered the program. It has been a great success.

• In 2007, Rich Jr. and Ryan began selling significant sizes and quantities of grooved, slotted, and coiled pins. They were soon approached by Driv-Lok, Inc. to become their Master Distributor. Today, Driv-Lok pins account for a third of Prospect Fastener’s inventory.

The Pratt family doubled down on their business during the financial crisis of 2008. Despite slowing orders and closures of competitors, Prospect Fastener’s low debt enabled them to weather the storm. In fact, Rich Jr. and Ryan invested heavily in AS400 technology, new Autobag packaging equipment, and vertical storage units that further allowed operations to stay nimble.

When the market rebounded, Prospect Fastener was ready. Their largest customers now demanded pre-labeled product assemblies – specifically pins, small clamps and retaining rings. Additional personnel were hired while the high-tech bagging systems helped them keep orders on track. Prospect Fastener also started offering assortment kits, custom labeling, and complex release schedules as value-added services. Staying true to Rich W. Pratt’s original vision, the company was finding new ways to provide options and flexibility to their customers.

In March of 2016 Prospect Fastener purchased a second warehouse, adjacent to their original location. To date, this has been the most significant re-investment in the company’s history. After an addition was applied to the new space, it was used exclusively to store KMC Clamps – a product line that requires more racking than other fasteners. With double the operating space, the road ahead was filled with green lights.

At the same time, Rich Jr. and Ryan revamped the company’s digital toolbox. Their newly acquired cloud-based enterprise system allowed Prospect Fastener to move product three times faster than their previous, DOS-based AS400 platform. At long last, the team was equipped with a proper e-commerce presence – one that eliminated redundancies and offered customers easy access to inventory on hand.

Prospect Fastener has entered its 40^th year of business on the heels of the first global pandemic of the modern era: Covid-19, and all its variants. Across the planet, millions lost their lives while hundreds of millions were sickened. As modern medicine scrambled for a vaccine, society spent the better part of 2020 in soft quarantine. Businesses were shuttered, and the return to normal seemed further and further away. The ripple effects of supply shortages and production closures wreaked havoc on the global economy, including the fastener industry. The impact is still being felt; imports are stalled of the coast due to sick-outs and resource atrophy. Raw materials are more expensive, and harder to acquire. Prices have risen, and inflation looms. Things are slowly getting better, but the scars are still fresh.

So why are we celebrating?

Shrewd decisions and long-term planning allowed us to stay firmly in the black. Our online store enabled customers, stuck at home during quarantine, to continue doing business without missing a beat. Our relationships with suppliers, nurtured over the years, ensured a steady flow of product – despite unprecedented supply chain disruptions.

We have a positive outlook on the future, and not just for our company. Our industry is poised for the comeback of a lifetime. Thanks to our suppliers, and customers like you, Prospect Fastener continues to hold a position of strength and support. We’ve been challenged before, and emerged stronger. As the world rebounds, we’ll be here to keep making sure it can obtain the fasteners needed to get the job done. We’ve done it for the last 40 years, and we’re not going anywhere.

If you’re a partner, we thank you. If you’re a customer, we want you to know that you’re special to us. Without you, there would be no 40^th anniversary. If you’re considering trying us for the first time, we will delight you. We’re Prospect Fastener, and We Distribute Value.