Jason Sandefur

China will surpass Japan in 2008 to become the second largest fastener market in the world, after the U.S., according to a new report by the Freedonia Group.

The move comes as the world’s emergent economies – Asia, Africa, the Middle East, Eastern Europe and Latin America – are growing “considerably” faster than highly industrialized ones in the U.S., Western Europe and Japan, Freedonia’s World Industrial Fasteners report finds.

“China will register the largest gains of any national market as the country continues its development as an economic power and as its manufacturing and fixed investment activity continue to climb,” according to Freedonia.

Global fastener demand is projected to increase 4.8% annually to $66 billion by 2012, driven by increased in “world economic output, fixed investment activity, manufacturing production, and aerospace equipment and motor vehicle output,” the 372-page report concludes.

“However, the use of new materials and production methods that reduce the number of fasteners required in motor vehicles and some aircraft will limit future market gains,” the report states.

Fastener demand in the world’s leading economies is still expected to grow, spurred by “generally favorable economic conditions,” continued fixed investment growth and higher income levels. “These areas will remain the most intensive users of industrial fastening products, reflecting the advanced industrial and technological base of their economies.”

After achieving a 4.8% growth rate from 2002-2007, North America’s growth rate will slip to 2.7%, achieving annual revenue of $16.75 billion by 2012.

Western Europe will see its rate of growth drop from 6.8% over the last five years to 2.8% through 2012, topping revenue of $16.06 billion, the report notes.

Asia’s growth rate will slow to 7.7% from 14.2% during the period (2002-2007), with annual revenue approaching $24.66 billion by 2012. And growth in “Other Regions,” including Africa and Latin America, will increase at a 5.7% rate to $8.5 billion, down from a growth rate of 11.1% during the past five years.

World Industrial Fasteners is available for $5,700 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. Tel: 440 684 9600 Fax 440 646-0484 E-mail: pr@freedoniagroup.com Web: freedoniagroup.com �2008 FastenerNews.com