Global Fastener News

Beyond the Statistics

John Wolz

Monitoring the fastener industry through a sampling of comments by FIN Survey participants:
2003 was a very good year for M.L. spec parts and those of us that stock and/or supply these items to the U.S. government.
Looking forward to a better year.
We are seeing overall improvement is both the inquiries and orders.
Remains strong.
More and more fastener manufacturing plants going out of business due to overseas competition.
Unless you have a specialty fastener in the manufacturing business, in the next 10 years common fasteners will strongly be taken over by overseas competition.
The movement of buying from China is a mistake � it is fueled by hype and hysteria. The real savings are minimal � if any.
China using up raw material � not good.
Between double-digit increases in raw material � if we can get it � and China, 2004 looks bleak.
More customer demand may go to China, but if we get it, steel will eat up our profits. Raise prices and lose it to China. What a choice!
Vendors going out of business. OEMs taking their manufacturing off shore � specifically to China.
There is a great deal of trepidation regarding U.S. manufacturing�s future. We are concerned for our OEM customers� viability. We hope the stronger economic environment will bode well for U.S. manufacturing.
Import prices will continue to increase in 2004. Wire costs are increasing monthly. Wire prices were up 15% in the 4th quarter. Wire rod is not available like in previous years. China�s growth rate is causing serious wire shortages.
Customer base is deteriorating based on global manufacturing competition.
Economic improvement is being offset by exodus of customers to Mexico and China.
The scariest unknown is how many of our customers� customers have moved their business to China.
Significant 4th quarter steel price increase of 15%+. Major cost shifting by OEM customers.
More EDI expenses.
Energy and health care expenses continue to rise.
There are still too many distributors who absolutely cave in to the demands of the OEMs. They constantly run scared rather than selling the value of their companies. If they continue this mode, there will be fewer distributors in the country � including the larger ones.
We need to be continually reminded we are in business to make a profit, not merely to sell screws. Customers need to be told �no� when appropriate.
Concern about prices heading north.
Pricing is going up this year and will affect margins.
Military spending plus inflated tax returns will boost 2004, but what will Bush deficits do to us after the election? 2005 could be bad � get prepared.
We must be pretty good business people if we can say we are still in the fastener business.
I expect business to pick up � hopefully.
Health insurance costs are not limited to the fastener industry. �\ 2004 FastenerNews.com