PERSPECTIVE: BTA Forecasts U.S. Fastener Sales to Rise 2.8% in 2006

John Wolz

Business Trends Analysts has forecasted U.S. fastener sales will rise 2.8% to $7.4 billion in 2006 and that total will grow to $9 billion by 2014. \
“Sales by U.S. manufacturers of industrial fasteners are slowly rising again after declining in 2001, 2002 and 2003,” according to the 2005/2006 Outlook for the U.S. Industrial Fastener Industry by Commack, NY-based Business Trends Analysts.
Excerpts from BTA”s Outlook:
” Domestic manufacturers supplied 65% of fasteners used in the U.S. during 2004. Outlook forecasts that figure will drop to 57% by 2006 due to Asian imports.
” Some U.S. companies are moving production to China not only for cheaper labor and materials but because the burgeoning Chinese economy is creating automotive and construction end-use markets.
” U.S. fastener manufacturers” total sales began recovering in 2004, partly due to higher prices.
” The automotive industry is the largest customer for U.S. fasteners and could reach $3.5 billion in 2006. Automotive accounts for 41% of the domestic fastener sales.
” Sales of fasteners for military and civil aircraft are rising, but passenger jets are hampered by the financial status of major airlines. Aerospace totals 10.6% of fastener sales.
” The construction market is expected to remain strong for 2006, which also helps the home appliance industry.
” More than 4,000 U.S. distributors supply fasteners to OEMs. Distributorships average $3 million to $6 million in annual sales.
” Business Trends Analysts forecasts producer prices for industrial fasteners will rise by 2% in 2006.
” The decline in the value of the U.S. dollar has helped increase fastener exports from the U.S. More than three-quarters of exports go to Canada, Mexico and the UK. BTA forecasts a 9% increase in U.S. fastener exports next year. The report compiles U.S. Department of Commerce fastener export figures to key countries, and types of fasteners.
” Business Trends Analysts reports the number of domestic fastener plants has been falling since 1997 and is now below 1,000.
” Materials for fasteners rose 3.2% in 2004 due to shortages of steel and aluminum. “Supply problems are expected to abate by 2006,” Outlook predicted.
” OEMs cutting costs with such alternatives as clinching, adhesives and sealants could affect the industrial fastener market.
Additional details are available in the study.
The fastener industry study, directed by Matthew Carroll, includes an overview of the U.S. industrial fastener industry, end-use markets, factors affecting demand, distribution, producer price trends, structural analysis of the industry, imports, exports, profiles of 14 private and publicly held companies and a directory of U.S. manufacturers.
The 399-page print edition of Outlook costs $1,995. There also is an electronic version. BTA also provides custom research for market information. For information contact Business Trend Analysts Inc. Tel: 631 462-5454 Fax 631 462-1842 E-mail: sales@bta-ler.com Web: bta-ler.com �2005 FastenerNews.com