Capital Expenditures Continue to Climb in 2004

John Wolz

The fastener industry met its capital expenditure predictions in 2004, as investments on facilities and equipment rose 21.4% to 3.4 in the FIN Survey Capital Expenditure Index. The capital investment gains approached levels not seen in the industry since the 1990s.

Nearly 46% of respondents reported moderate to strong increases in capital expenditures, while about 45% kept investments stable.

Distributors outspent their manufacturing counterparts, with more than 50% of suppliers increasing capital spending, compared with only 36% of manufacturers. The FIN Survey Capital Expenditure Index rose to 3.5 for distributors, and 3.4 for manufacturers. About 56% of manufacturers kept investment levels unchanged in 2004, compared with about 38% of distributors.

However, more than 60% of manufacturers forecast capital spending growth in 2005, while only 49% of distributors expect investment levels to grow.

More than half of respondents plan to increase capital investment in 2005, while 32.8% expect to hold the line on spending. \ �2005 FastenerNews.com