represented 17 percent of our
total revenue, up from 6 percent
in 2010. Our acquisitions in the
mechanical power transmission
space have expanded our
portfolio to include couplings,
gearboxes, chain, lubrication
systems and belts.
The PT Tech acquisition added
another new platform — clutches
and brakes. This acquisition allows
us to offer greater solutions to our
current customers. Torsion Control
Products enhanced our coupling
product line by pairing an engineered metallic torsional coupling
solution with Lovejoy’s elastomeric
torsional coupling offering. The
addition creates more options for
our customers and allows the two
organizations to leverage each
other’s knowledge to generate
future engineering advancements.
Similarly, our acquisition of
Groeneveld in July expanded our
lubrication systems portfolio.
The Interlube acquisition in 2013
was our first venture into this
space and allowed us gain valuable knowledge before expanding to create additional
customer and shareholder value.
ID: Many major industrial suppliers were hit hard by
the industrial downturn of 2015-2016, but the market
seems to have improved considerably since bottoming
out. What are your thoughts on the current state of the
industrial bearings and power transmission markets
compared to this time a year ago? Do you foresee
continued improvement over the next six months?
Henson: The markets have strengthened, and we’re
seeing continued improvement. In the second quarter,
we saw sales grow 11 percent compared to the second
quarter in 2016. Sales were 7 percent higher than the
first quarter of 2017. While some of this can be attributed
to acquisitions, over two-thirds of the increase can
be credited to organic growth and improved market
strength. We currently see the second half of 2017
remaining strong and expect total organic growth for the
year to be 6 or 7 percent.