The 2005/2006 Outlook for the U.S. Industrial Fastener Industry (With Long-Term Forecasts Through 2014)

Abstract

• This report includes a comprehensive analysis of the financial health and performance of the industrial fastener industry. Our in-depth look at the state of the industrial fastener industry examines cost structure and profitability, employment trends, capital spending, and other critical operating characteristics.
• U.S. manufacturers' sales of industrial fasteners have been rising steadily since 2004, emerging from the three-year slump that marked the start of the decade. Sales topped $7.2 billion in 2005, and an even stronger performance is expected in 2006.
• Internally threaded fasteners were hardest hit during the recent downturn, and sales in that segment remain weak. Nonthreaded fasteners have been leading the recovery, turning in the strongest growth rates over the last two years. Today, aircraft/aerospace fasteners are moving to the fore.
• Navigating the global marketplace is a never-ending challenge. While U.S. manufacturers are moving some production offshore to take advantage of cost savings, China's insatiable appetite for steel continues to put pressure on pricing. On the domestic front, producers are shifting their focus toward high-end, specialty fasteners, and they are relying more heavily on foreign markets for sales revenues.
• Fastener distributors serving the OEM channel are increasingly providing inventory control, inspection, and other critical services. In the retail arena, big-box outlets continue to marginalize traditional hardware stores. A special section of this report examines the distribution network for industrial fasteners.