Global Fastener News

EXCERPT FROM FASTENER MEETING: Rockford Panel Agrees On Need for Change

John L. Wolz

Three industry veterans agreed that companies must change with the marketplace to survive the current lagging economy.
Manufacturer Bryan Burgy, distributor Jim Derry, galvanizer Mike McKinnon and supplier Tim Meyer spoke at a Chicago Bolt, Nut & Screw Association meeting in Rockford, IL.
Meyer, president of Meyer Retaining Ring and vice president of the National Fastener Distributors Association, recalled wondering in 1976 if he had made a mistake starting a business. The industry is an ever-changing marketplace, and his company survived the decades and economic cycles by changing. He cited bar coding and packaging technologies as changes needed to remain viable over the years.
The economy has been very different for the past three years, making managing more important to weather the storm, Meyer said.
The economy makes vendors look at their business closer, Burgy, president of Rockford Fasteners, said. He finds customers want everything now or even yesterday.
The Asian economy has billions of dollars in the bank, because they invest in infrastructures and have lower costs for insurance, workers comp and OSHA protections. A considerable amount of manufacturing has already gone overseas, and we need to work with government to slow down the loss. Companies need to be made better to stay in business.
Derry, of Field Fastener Supply, noted that the consolidated companies are coming out of bankruptcy and reemerging, and suppliers are becoming competitors. However, distribution is becoming very regional, and there isn�t a dominant fastener distributor. Quality is an increasing issue, as customers are expecting zero defects. �Change or be road kill,� Derry cautioned.
McKinnon, president of Rogers Brothers, reported business from domestic fastener manufacturers is down because of imports. Price is the key variable.
OSHA and EPA issues are easier to deal with than such challenges as insurance and energy prices. It is difficult to deal with lower sales while contending with increased fuel costs. �2003 FastenerNews.com\