Fastener Profits Decline Despite Sales Gains in 30th Annual FIN Survey
Fastener Profits Decline Despite Sales Gains in 30th Annual FIN Survey
Jason Sandefur
About 50% of fastener companies participating in the End of 2008 FIN Survey reported sales growth during 2008, with 22.2% experiencing a “strong” increase in sales. Profits declined, with the FIN Profit Index dropping to 3.1.
Over 16% of participants said sales held steady for the year, while 14% reported a “strong” decline in sales during 2008.
Manufacturers led the way, with 58% of respondents reporting moderate to strong sales growth, compared to 43.6% of distributors. Manufacturers scored slightly higher than distributors on the FIN Sales Index – 3.3 to 3.2 as 58% of participating manufacturers reported sales increases, compared with 43.6% of distributors.
The 30th annual Fin Survey found that sales were especially rough in the fourth quarter, as nearly 70% of fastener companies saw orders drop, including 40% of fastener firms that reported a “significant” decline in orders.
In 2008 the FIN Sales Index leveled off at 3.3. The index was at 3.8 for 2006. The high was 4.4 in 2004 and the low was 2.6 for 2001. During the 15 years of the FIN Sales Index the average is 3.7.
At 3.1 the FIN Profit Index dropped from its 2007 level of 3.3. The average over the 14 years of the FIN Profit Index is 3.4.
The percentage of firms reporting profit increases rose to 45.1% in 2008, up from the 43.3% reporting profit increases the prior year. The number of fastener companies reporting 2008 profit declines rose to 34.1%. About 48% of manufacturers and 46.2% of distributors reported profit gains.
The full End of 2008 FIN Survey will be published in the coming weeks. �2009 FastenerNews.com
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