Freedonia Projects Global Fastener Demand at $43 Billion

John Wolz

The Freedonia Group projected the world market for industrial fasteners will increase 6% per year through 2004 to reach $43 billion.
�Fueling gains will be further recovery from recession in a number of Asian countries impacted by the 1997-1998 financial crisis,� according to a recently released study by the Cleveland-based industrial market research firm.
�Recovery in Asia is critical, because many of the countries most directly affected by the crisis � Indonesia, Malaysia, South Korea and Thailand � were previously among the world�s fastest-growing markets, as fastener requirements rose rapidly with expansion of their respective OEM and construction sectors.
Freedonia projected prospects for China, Taiwan and certain other Asian nations as �quite favorable,� as they are �not as directly affected by the crisis.�
Recovery is expected in Brazil and other Latin American countries as well and �even Russia will likely register some improvement, and prospects for most of the rest of Eastern Europe are favorable as fastener-using industries and sectors expand with ongoing economic transition.�
The advanced nations of North America, Western Europe and such countries of the Asia/Pacific as Australia, Hong Kong, Japan, New Zealand and Singapore �comprise mature, highly cyclical markets for industrial fastener products. Prospects are generally favorable for continental Western Europe over the next several years, fueled by a sanguine fixed investment climate accompanying ongoing economic expansion, and benefiting from reduced cross-border transaction costs associated with the single currency.�
By contrast, the U.S., the UK and other English-speaking developed countries with increases in fastener demand over the past several years �will exhibit some cyclical slowing.�
The fastest growth will be in fasteners for electronic products, plastic fasteners and high-end, high-performance specialty designs, the Freedonia study predicts.
MRO and construction demand will �generally outperform� the OEM market in most areas.
�Fasteners will continue to face functional competition from adhesives, advanced welding and other alternative joining techniques in numerous applications, including automotive, aerospace and electrical equipment,� according to the forecast.

Editor�s Note: Freedonia sells the 332-page World Fasteners study for $4,700. For information contact Freedonia. Tel: 440 684-9600. Web: www.freedoniagroup.com