Distributors Plan to Increase Prices

John Wolz

Inventory turnovers for distributors dropped to 4.1, representing the fewest turnovers since 1995. The current figure is nearly 15% lower than the 4.8 turnovers reported in 2000.

The FIN Gross Margin Index slipped to 38.1% in 2003, compared with 39.7% in 2002.
More than 44% experienced “moderate” or “strong” cost increases in 2003, prompting a 66.3% majority to say they will raise prices an average of 9% in the first half of 2004. More than 60% of distributors predict costs will continue to rise in the coming year.

A 60.2% majority of distributors reported no difficulty in obtaining fasteners during 2003. Just over 36% claimed some problems, and 3.6% reported “significant” difficulty finding fasteners.

What fasteners are you having trouble obtaining?
Stainless steel, 316 stainless, A325, B7 studs, brass, certifiable mil-spec, cinch fasteners, lock bolts, metric, nickel copper stainless, pins, rivet nuts, screws, semi-standard bolts, small run specials, wire product such as screws and “All � massive shortages ahead.” \ �2004 FastenerNews.com