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This century-old toolmaker has ambitious targets

The manufacturer has made vast improvements in returns on invested capital over the past decade
This century-old toolmaker has ambitious targetsPublished on November 21, 2024

There can’t be many Fortune 500 companies that were founded by someone placing an ad in The Economist, but Illinois Tool Works (US:ITW) is still going strong 112 years after Chicago-based financier Byron Smith did just that.

Hoping to invest in a manufacturing business, Smith ended up backing a group of tool inventors who had had some early success providing washers for the up-and-coming carmakers in nearby Detroit.

Over a century later, the automotive industry remains the group’s biggest customer, providing around 20 per cent of its revenue, but ITW has since diversified across a range of industries and markets.

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