Acme United Corporation (ACU) Stock Analysis

Acme United’s principal competitive advantages stem from its scale, product breadth, and supply chain flexibility in the fragmented safety and cutting tools market. The company is the world’s largest scissor manufacturer, producing 70 million units annually under the Westcott brand, and holds 150 patents in cutting technology. In first aid, Acme is a leading supplier to industrial, retail, and government customers, with a high-margin refill business generating approximately $40 million in recurring revenue.

Relative to major rivals—Cintas and Honeywell in first aid, 3M and Fiskars in cutting tools—Acme’s edge lies in its diversified sourcing and domestic manufacturing. About 60% of production is now North American-based, reducing tariff and supply chain risk. This contrasts with competitors more reliant on Asian imports, a vulnerability highlighted by recent 145% tariffs on Chinese goods.

Acme’s culture emphasizes operational efficiency and innovation. The company has delivered over $2 million in annual productivity savings through automation and process improvements, supporting gross margins of 39% in 2024—higher than many peers. Its patented RFID-enabled SmartCompliance cabinets and focus on regulatory-driven first aid refills create customer lock-in and recurring sales.

However, Acme faces intense price competition and customer concentration risk, with two customers representing over 25% of sales. Nonetheless, its nimble supply chain, recurring revenue streams, and focus on compliance-driven products provide a defensible position against larger, less agile competitors.