NEWS BRIEFS
Freedonia: U.S. Demand for Fasteners Will Rise But Prices Won’t
Demand for fasteners will increase in real terms in contrast to the price value gains from 2003 to 2008, according to the 2009-updated Freedonia Group report, Industrial Fasteners.
“Perhaps the most significant factor restricting advances will be a forecast decline in fastener prices,” Freedonia found. “Due primarily to falling raw material costs, average industrial fastener prices will decrease through 2013.”
U.S. demand for industrial fasteners will be bolstered by recovery in motor vehicle production and construction spending, the report forecasts.
U.S. fastener sales will grow 1.2% per year to $12.5 billion by 2013, Freedonia predicts.
* “Sales will be bolstered by an expected recovery in motor vehicle production from the low levels of 2008,” according to Freedonia. “Market expansion will also be supported by an acceleration in construction spending growth and a strong rebound in residential building in particular.”
* Fastener manufacturers offering innovative products withy performance enhancing features that can be sold at a premium will gain.
However, competition from alternative joining technologies such as adhesives, clinching and welding will limit fastener growth. * Growth in production by several U.S. OEM industries will moderate or even decline.
* The aerospace-grade fastener market will grow at 1.4%, compared with 1.1% for standard fasteners. “The trend toward larger aircraft will also support the use of more fasteners,” the report notes. However, slowing defense spending will limit expansion as will increasing use of composite materials with fewer fasteners for aircraft and space vehicles.
* Residential construction will rebound from low levels of 2008.
The 268-page report costs $4,600. ©2009 GlobalFastenerNews.com
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