FDI: April in "Sluggish-But-Positive" Range

May 14

00:00 2013

Share it With Friends

FEATURE

+ click to enlarge

Source: BB&T Capital Markets’ estimates, FCH Sourcing Network, Institute for Supply Management

Fastenal’s Presence
“Fastenal’s fastener growth is stalled, which made us wonder if it was still a share-gaining juggernaut of yore.”
“53% of respondents felt its size is now such that its fastener business simply reflects the sluggish market trends. 44% believed the company has slipped of late in selling fasteners.”
“Even recognizing that questions such as these exhibit a touch of bravado from respondents, it is still telling that almost no one felt Fastenal was hoovering up market share. Such responses fuel our worries that its fastener business may be suffering as resources route elsewhere.”

The BB&T Capital Markets Fastener Distributor Index (FDI) edged down to 51.6 in April.
After “wild gyrations in January/February, March (52.8) and now April (51.6) have settled into a sluggish-but-positive range.”

“Sales stayed at good, and in fact improved levels (68.8, vs. 58.3 in March). However, employment expectations moderated (45.3, vs. 56.9 in March) and customers continued to slim down inventories (39.1, vs. 43.1 in Mar.).”

“In total, the picture remains growing but at subdued rates for the fastener industry (averaged 52.5 YTD).”

The FDI found the outlook “tempered, but still positive.” The ratio of respondents that were optimistic slid in April (47%; in 64% in Mar.).

Pessimists remained low and largely unchanged in April (13%, vs. 13.9% in Mar.). “Dewey-eyed optimism may be giving way to pragmatic realism, but this figure still reflects little fear of a downturn the next six months.”

The price indicator rose.

Both sequential (54.8, vs. 50.0 in March) and annual (65.6, vs. 56.9 in March) pricing “ticked up.”

“The metric improved, though the largest group by far remains that seeing little change.

The FDI is a monthly survey of North American fastener distributors. As a diffusion index, readings above 50 signal strength and below 50 signal weakness.

Global Fastener News