4/6/2012 6:02:00 PM
NEWS BRIEFS
FDI Finds Sales Growth and Hiring Pressure
Sales were the strongest component for fastener distributors in March, according to the Fastener Distributor Index (FDI). While the overall FDI was 55.9 — unchanged from February — sales got stronger (69.4 in March, vs. 64.5 in February).
For the first three months of 2012, the index averaged 56.4, which would imply stable to slightly better business conditions over Q4’12.
“The strong economy is raising pressure to increase employment,” the FDI found. “Most still are looking to keep employee levels stable, but each month including March some respondents dribbled into the camp that anticipates adding personnel.”
Channel inventories look “appropriate, but there remains a bias for respondents to believe their inventories are too high and their customers’ inventories are too low.”
Most end markets performed in line with the broad index, but automotive again stood out as relatively strong.
The outlook looks strong for the remainder of 2012, the index found. “At this point it seems distributors see little to fear through much of 2012.”
More than 66% of respondents expect activity to be “higher” in six months while just 5.6% said “lower.”
Concerning price, the FDI found that “some distributors may be taking advantage of a strong economy and capturing a little.”
Year-over-year, point-of-sale pricing is higher (55.6% of respondents) or “flattish” (30.6%); the rate of change is up 3.2%–3.7%, the FDI found.
The FDI is a monthly survey of North American fastener distributors that aims to provide insight into current trends/outlooks. As a diffusion index, readings above 50 signal strength and below 50 signal weakness.
The FDI is a joint production of BB&T Capital Markets and the FCH Sourcing Network, the online network for industrial fasteners. ©2012 GlobalFastenerNews.com
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• Global Fastener Industry Roundup
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