Freedonia: Auto Rebound To Push U.S. Fastener Demand to $12.9b By 2011
Freedonia: Auto Rebound To Push U.S. Fastener Demand to $12.9b By 2011
Jason Sandefur
Anticipating a rebound in motor vehicle production and continued aerospace demand, the Freedonia Group predicts U.S. industrial fastener demand will grow 3% annual to $12.9 billion in 2011.
“Production of many other durable goods will continue to rise, providing some opportunities for fastener suppliers,” Freedonia stated in its new 262-page study, Industrial Fasteners. “However, overall market gains will be limited to some extent by competition from adhesives and other alternative joining technologies and by a moderation in residential construction.”
The Cleveland, OH-based research firm also noted that strong competition between various types of fasteners and with alternative joining technologies, along with declining raw material prices, would limit price increases.
The MRO segment will see the fastest increases, supported by continued strength in the defense market and solid growth in transportation equipment repair, according to Freedonia.
“While not as rapid in percentage terms, continued gains in original equipment applications will be the most important factor for fastener manufacturers, given the large size of the OEM market. Gains will be especially rapid in aerospace equipment, with the electrical and electronic product market also seeing above average gains.”
Sales of aerospace-grade products will grow more rapidly, rising 8.2% annually to $2.51 billion by 2011. Standard fasteners will see annual growth slow to 2%, totaling $10.39 billion by 2011. Strong growth in aerospace equipment production will drive demand for aerospace-grade fasteners. “However, the growing use of composites in place of aluminum panels on airplane bodies will prevent even faster gains,” Freedonia found.
By market, fasteners to OEMs will rise 2.9% annually to $9.8 billion, while MRO fastener consumption will grow 3.6% to $2.55 billion. Construction fasteners will increase 3.2% per annum to $550 million by 2011.
Editor’s Note: Industrial Fasteners (published April 2007) is available for $4,400 from The Freedonia Group, Inc., 767 Beta Dr., Cleveland, OH 44143-2326. For information contact Corinne Gangloff. Tel: 440 684-9600 Fax 440 646-0484 E-mail pr@freedoniagroup.com Web: freedoniagroup.com �2007FastenerNews.com
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