How One Company in Illinois Controls 50% of the Screws Holding America Together

How One Company in Illinois Controls 50% of the Screws Holding America Together In 1912, a Chicago banker named Byron Laflin Smith — the founder of Northern Trust — placed an advertisement looking to invest in a manufacturing business. A small group of toolmakers from Rockford, Illinois answered. Together with his four sons, Smith launched Illinois Tool Works, a company that made precision gear-cutting tools for the automobile industry. Within a decade, ITW acquired the Shakeproof Screw and Nut Lock Company and entered the fastener business. It never looked back. Over the next century, ITW grew from a small machine shop on Huron Street into a $16 billion industrial conglomerate operating 84 divisions across 51 countries. Along the way, it acquired Miller Electric, Hobart, Paslode, Instron, Permatex, and dozens of other brands that professionals depend on every day. The company's 80/20 management philosophy — focus everything on the 20% of customers and products that generate 80% of profits — became one of the most studied operating models in American business. Warren Buffett praised its architect. Harvard Business School listed him among the century's outstanding leaders. And through it all, ITW raised its dividend for 62 consecutive years without interruption. You are never more than ten steps from an ITW product. This is the story of the invisible giant holding America together. KEY FACTS: 1912 — Byron L. Smith and sons found Illinois Tool Works in Chicago 1915 — Harold C. Smith becomes president; company incorporated 1923 — ITW acquires Shakeproof, enters the fastener industry 1936 — Harold Byron Smith succeeds his father; begins decentralisation 1930s — ITW profits every single year of the Great Depression 1940s — Develops wafer cutter for WWII artillery barrel production 1950s — Forms Fastex division; enters plastics, defence, and computer markets 1963 — Listed on the New York Stock Exchange 1980s — John Nichols implements the 80/20 strategy; revenue grows tenfold 1993 — Acquires Miller Electric for ~$900 million 1996 — Acquires Hobart Brothers (welding consumables) 1999 — Acquires Premark International for $3.4 billion (Hobart food equipment, Wolf, Traulsen) 2007 — Acquires Instron (materials testing equipment) 2012 — Scott Santi launches Enterprise Strategy; consolidates 800+ units to 84 divisions 2014 — Sells Industrial Packaging segment for $3.2 billion 2025 — Revenue exceeds $16 billion; 62 consecutive years of dividend increases Subscribe to Tool Archives for more deep dives into the companies, machines, and people who built the industrial world. No sponsorships. No brand deals. Just research and history. #IllinoisToolWorks #ITW #MillerElectric #Hobart #Paslode #Fasteners #Manufacturing #IndustrialHistory #AmericanManufacturing #8020Rule #Welding #ConstructionTools #CorporateHistory #DividendKing #MadeInAmerica