Applied Industrial Technologies, Inc. AIT lately reinforced its government contract base by securing the third consecutive renewal of a five-year deal with Government Services Administration (‘GSA’). The contract, extending from Apr 6, 2015 to Apr 5, 2020, is expected to improve the company’s brand status as well as commercial potency in the wholesale global industrial equipment market.
An autonomous agency of the U.S. government, GSA ensures proper functioning of variable federal agencies. The GSA Facilities Maintenance and Hardware Acquisition Center (‘FMHAC’) provides the federal agencies with specialized procurement tools required to examine the maintenance services of a facility or marine vessel.
The FMHAC contract requires Applied Industrial Technologies to extend more than 350000 of its products to the GSA Advantage website. Furthermore, as per the agreement, the company will help government managers enhance operating efficiency and lower costs of different facilities through specialized MaintenancePRO training programs.
Applied Industrial Technologies, operating across 560 business facilities, sells roughly five million industrial equipment parts annually to customers across all industries. Additionally, the company provides services like integration, designing and engineering of fluid power applications.
The organization is also a popular provider of customized mechanical and fluid power store services in the market, along with specialized storage management solutions. The company constantly endeavors to augment its customer value through better business offerings.
We believe that by providing better-quality products, output enhancement solutions and value-added services to GSA, Applied Industrial Technologies would fortify its brand image in the market and subsequently earn more lucrative contracts in the long run.
Other Stocks to Consider
With a market capitalization of $1.85 billion, Applied Industrial Technologies holds a Zacks Rank #2 (Buy). Other stocks worth considering in the industry include RBC Bearings Inc. ROLL, Accretive Health, Inc. ACHI and Booz Allen Hamilton Holding Corporation BAH. All three stocks carry the same Zacks Rank as Applied Industrial Technologies.
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