China Fastener Growth To Fall Below 5% in ’09
China Fastener Growth To Fall Below 5% in ’09
Jason Sandefur
Facing a global economic slump, fastener production in China slowed to 5% growth in 2008 the lowest rate of growth in a decade, with tougher times anticipated this year, China Fastener Industry Association reports.
“(This) awakens China’s fastener industry from the sweet dream of continuous rapid growth,” according to China Fastener Info.
Some fastener companies, including Zhejiang Yeswin Machinery Co., Zhengyou Machinery (Shanghai) Co., Shanghai Chunri Metal Product Co. and Shanghai Dali, are urgently looking to cut costs, examining ever aspect of production, including fastener design.
“These measures are significant for China fastener enterprises,” according to China Fastener Info.
While there is little doubt that China’s domestic market will increase, excess capacity will drive down prices.
“China’s fastener industry will enter a new adjustment phase in the coming two to three years because the much fiercer competition in China fastener industry will accelerate the natural selection of fastener enterprises.”
Despite government policies that promote growth, fastener demand is expected to drop, leaving little hope of strong growth in 2009. �2009 FastenerNews.com
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