Northern Hydraulics and Northern Tool are two major retailers of tools and industrial equipment in the United States. While they have some similarities in the products they offer, they are separate companies with distinct histories and operations. This article will examine the key differences and similarities between Northern Hydraulics and Northern Tool to help clarify if they are the same company.
Background on Northern Hydraulics
Northern Hydraulics was founded in 1955 by Charles Northern in Burnsville, Minnesota as a distributor of hydraulic components and systems. The company started out selling hydraulic pumps, valves, cylinders, and other parts to manufacturers and service providers in the upper Midwest region of the U.S.
Over the decades, Northern Hydraulics expanded its product catalog and geographic reach across the country. It now operates over 150 branch locations nationwide and offers a wide range of hydraulic, automation, lubrication, fluid conveyance, sealing, and other industrial components. The company caters primarily to maintenance and repair operations, machine builders, and other B2B customers.
Some key facts about Northern Hydraulics:
- Headquarters: Burnsville, MN
- Founder: Charles Northern
- Year founded: 1955
- Locations: Over 150 branches nationwide
- Products: Hydraulics, automation, lubrication, sealing
- Customers: B2B – maintenance & repair, machine builders
Background on Northern Tool
Northern Tool was founded much later in 1981 by Donald Kotula in Burnsville, Minnesota. It started primarily as a mail-order catalog business selling light construction, farming, and automotive tools and equipment.
Northern Tool opened its first retail showroom in 1983 and gradually expanded to over 115 stores across 21 states. The company sells over 75,000 products targeted at B2C customers in categories like power tools, compressors, generators, material handling, outdoor living, and more.
Some key facts about Northern Tool:
- Headquarters: Burnsville, MN
- Founder: Donald Kotula
- Year founded: 1981
- Locations: 115+ retail stores in 21 states
- Products: Power tools, generators, material handling, outdoor equipment
- Customers: B2C – contractors, DIYers, homeowners, auto enthusiasts
Major Differences
While Northern Hydraulics and Northern Tool share some high-level similarities like being based in Minnesota and selling industrial equipment, there are several key differences between the two companies:
Founding and History
Northern Hydraulics has been in business since 1955, whereas Northern Tool was founded much later in 1981. They have distinct origins and histories over the past 60+ years.
Product Focus
Northern Hydraulics specializes in hydraulic components and fluid power systems for industrial applications. Northern Tool has a broader catalog focused on power tools, equipment, and accessories for construction, farming, automotive, and home use. There is little overlap between their product lines.
Target Customers
Northern Hydraulics sells primarily to B2B customers like maintenance shops, manufacturers, and OEMs. Northern Tool markets more to B2C customers like contractors, farmers, auto enthusiasts, and homeowners. Their brand images, marketing, and distribution cater to distinct end-user segments.
Store Locations
While both companies have a strong retail presence, Northern Hydraulics operates significantly more branch stores nationwide – over 150 locations compared to just over 115 Northern Tool outlets. Northern Hydraulics targets its branches in industrial areas while Northern Tool locates in suburban retail centers.
Ownership Structure
Northern Hydraulics remains a private family-owned business. Northern Tool was acquired by the private equity firm Hellman & Friedman LLC in 2011 and Golden Gate Capital in 2017. The two companies have operated under separate ownership.
Similarities
Despite their differences, Northern Hydraulics and Northern Tool do share some high-level similarities:
Geographic Headquarters
Both companies are headquartered in Burnsville, Minnesota and were founded by entrepreneurs in that same metro area. However, Northern Hydraulics was founded 26 years earlier than Northern Tool.
Industrial Equipment Retailers
They are two of the largest retailers of industrial tools, equipment and accessories in the Upper Midwest region. However, Northern Hydraulics focuses on hydraulic components while Northern Tool carries a wider array of products.
Brick-and-Mortar Presence
Northern Hydraulics and Northern Tool both operate large retail store networks spanning multiple states, combining physical showrooms with online e-commerce. However, Northern Hydraulics has a much broader geographic footprint.
Similar Corporate Culture
As local Minnesota companies, they share some cultural aspects like an entrepreneurial spirit, customer service focus, and emphasis on technical expertise. But their specific brand images, values, and business practices differ considerably.
Conclusion
In summary, while Northern Hydraulics and Northern Tool share the “Northern” name and roots in Minnesota, they are distinct companies that have taken divergent paths over 60+ years in business. The key differences outweigh the similarities in their histories, product focus, target customers, store locations, and ownership. Northern Hydraulics specializes in hydraulic components for industrial users, whereas Northern Tool serves a broader B2C market across multiple equipment categories. They compete in some peripheral product segments but are not the same company.
Frequently Asked Questions
When were Northern Hydraulics and Northern Tool founded?
Northern Hydraulics was founded in 1955 by Charles Northern in Burnsville, Minnesota. Northern Tool was founded much later in 1981 by Donald Kotula in the same metro area.
What are the main products of Northern Hydraulics?
Northern Hydraulics specializes in hydraulic components like pumps, valves, cylinders, motors, and filtration systems. They cater primarily to industrial maintenance and repair operations that rely on fluid power.
What are the main products of Northern Tool?
Northern Tool sells a broader range of products like power tools, air compressors, generators, material handling equipment, outdoor power equipment, shop equipment, and accessories for automotive uses. They cater more to B2C channels.
Does Northern Hydraulics sell directly to consumers?
No, Northern Hydraulics focuses almost exclusively on B2B sales to industrial users like plant maintenance teams, machine builders, hydraulic service companies, and OEMs. They do not target the consumer DIY market.
Does Northern Tool sell to industrial users?
While Northern Tool does sell some industrial-grade equipment, their core customer base is B2C – contractors, farmers, auto enthusiasts, homeowners and hobbyists. Their brand image and marketing is targeted more towards DIY consumers rather than industrial channels.
Do Northern Hydraulics and Northern Tool have any shared ownership?
No, Northern Hydraulics remains privately owned more than 60 years after its founding, while Northern Tool has been owned by private equity firms since 2011. The two companies have always operated under fully separate ownership and management.
Do Northern Hydraulics and Northern Tool sell the exact same products?
There is little overlap between the companies’ product lines. Northern Hydraulics focuses narrowly on hydraulic components and fluid conveyance products. Northern Tool has a much wider range including power tools, generators, jacks, shop equipment, outdoor living, and automotive accessories.
Does Northern Tool sell hydraulic equipment?
Northern Tool does sell some hydraulic equipment like jacks, pumps, and cylinders, but it is a very small part of their overall catalog. Their hydraulic offering is targeted at automotive DIY and hobbyists, not industrial users. Hydraulics make up the entirety of Northern Hydraulics’ product focus.
Key Takeaways
– Northern Hydraulics and Northern Tool are separate companies founded 26 years apart in Minnesota.
– Northern Hydraulics specializes in hydraulic components for industrial users. Northern Tool has a wider catalog for B2C channels.
– The two companies have never had shared ownership or management.
– There is little overlap between Northern Hydraulics and Northern Tool’s product lines and target customer bases.
– While both are industrial equipment retailers in Minnesota, Northern Hydraulics and Northern Tool operate independently and are not the same.
