Shipping logistics and other supply chain challenges are dominating the focus of fastener distributors and manufacturers, panelists of a National Fastener Distributor Association presentation stated.

Product availability is affected by raw material demand in Taiwan, which is causing delays as long as six weeks, according to Melissa Patel, supply chain director at Field Fastener.

Likewise, lack of shipping availability, coupled with domestic rail delays, have added weeks to deliveries, Patel noted.

And exchange rates have compounded the problems fastener companies face.

“I don’t recall another time when exchange rates have been so prominent in management discussions,” explained Patel, who has worked for Field for 18 years.

Optimas Solutions CEO Marc Strandquist echoed those concerns.

“Covid is an issue that makes it so difficult to run a business, both in terms of supply side and internally,” Strandquist stated. “Import orders are big right now. Everybody is ordering extra, creating a false demand.”

One manufacturer told Strandquist that one customer who generally orders 100,000 pieces just ordered 15 million.

“Some manufacturers domestically are in heaven.”

In response, steel prices are rising and there is speculation about allocations.

In addition to rising costs, there are quality issues as an uptick in business has led to less experienced workers producing questionable products, Patel said. Factoring in 301 tariffs that the Trump administration placed on Chinese fasteners and other products, Field constantly evaluates reshoring products, Patel noted.

“We are always looking to make sure we have the best total cost for any item we produce.”

While Optimas Solutions has a strong percentage of domestic products, global supply side issues have placed added pressure on reshoring.

“Customers are challenging us to reshore more because they’re worried about the length and financial stability of the supply chain,” Strandquist said.

There are two components of steel price: base price and surcharge, Strandquist pointed out.

“The surcharge is going up and down right now,” he said.

Despite all the uncertainty in the supply chain, OEM planning is not getting more accurate.

“I don’t anticipate that changing or improving,” Patel explained. “They’re paying us to manage this for them.”

Strandquist echoed that sentiment.

“There’s no appreciation. As far as customers are concerned, it’s just a bolt. You can go down to K-Mart for that.”

In response, fastener suppliers have been forced to use air freight to meet customer demands, Strandquist said. But that option is “cost prohibitive” because fasteners are lower value and quite heavy compared to computer chips.

“There is madness in the supply chain. Everybody is killing themselves to keep up with it.”