Global Fastener News

BTA: U.S. Fastener Sales Rise at 4.7% per Year

John Wolz

U.S. fastener manufacturers� sales rose an average of 4.7% per year from 1992 to 2000, according to a recently updated report by Business Trend Analysts Inc.
�This relatively successful stretch for such a mature industry had a lot to do with the separate but concurrent successes of the end-use markets that industrial fasteners serve,� according to the report by the Commack, NY-based research firm. �The automobile, aircraft and construction industries did quite well in both economic and unit growth� during the economic boom of the late 1990s.\
The U.S. Fastener Quality Act, originally passed at the beginning of the decade, was revised in 1999 to �clarify uncertainties and help companies attain certifications more easily.�
The 375-page report costs $1,495.
The FQA also changed the U.S. market by making importing of fasteners easier. �Since President Clinton was such a big supporter of free trade, it followed that he would be in favor of these changes to the law,� according to the report.
But raw material imports face a different situation. �Items such as steel are facing import quantity restrictions due to the cheap labor available to foreign companies during the production process.�
Raw material prices have been driven down �because of years of competition and cost-cutting. After prices and margins have been pushed as low as possible, it is usually the cost of raw materials that subsequently becomes the biggest influence behind price movement.�
The report cited �short-term obstacles that must first be overcome� before sales growth can match that of the Clinton years. The top issue is economic turnaroud. The post 9/11 state of the airline industry decreased demand for air travel, resulting in massive layoffs and order cuts for new planes. Boeing and others subsequently began layoffs.
Editor�s Note: The report is available from Business Trend Analysts. Tel: 631 462-5454 or 800 866-4648 Web: bta-ler.com �2002 FastenerNews.com