11/12/2010 11:10:00 AM
NEWS BRIEFS
Emerging Economies Boosting Industrial Fastener Demand

Industrial fasteners have proved to be a strong market for the Metal Fabrication sector, according to Wall Street Equity Research.

Growing demand has been driven by emerging economies as production increases in their automotive, industrial, and infrastructure markets.

“Political turmoil throughout the globe should ensure that military and defense spending remain strong, meaning parts suppliers should have a healthy market during the coming years.”

Despite a modest recovery, the market is not expected to see a “meaningful turnaround” until commercial construction ramps up to pre-recession levels. 

The Metal Fabrication industry has been hampered by rising raw material prices, including iron ore. Strong Chinese demand has driven price hikes, hurting the margins of several companies within the industry that have struggled to incorporate the material’s increase in their pricing. 

However, this has been mostly offset for companies such as Precision Castparts Corp. and Reliance Steel & Aluminum Co. with exposure to the aerospace industry, the research firm found. 

Metal fabricators have seen high volumes lately as a rebound in air travel has spurred the aerospace industry back to life. Better than expected backlogs and strong aftermarket demand have continued despite a marginal decrease in air travel during August. Air travel once again increased in September. ©2010 GlobalFastenerNews.com

 

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