9/10/2009
NEWS BRIEFS
Fastener Demand in China To Top $10.8b
Demand for industrial fasteners in China will growth 10.7% annually to 74.2 billion yuan (US$10.85 billion) by 2013, driven by rapid growth in manufacturing production, especially industrial machinery and motor vehicles, according to a new report by the Freedonia Group. Increases in electrical and electronic product manufacturing will provide growth opportunities, though at a slower pace than the last decade.
“A rise in demand for higher-grade industrial fasteners will also boost overall market value,” according to Fasteners in China, a new study from the Beijing office of The Freedonia Group. “However, the use of new materials and manufacturing methods that reduce the number of fasteners required in the production of a variety of durable goods will restrain sales growth to some extent through 2013.”
Sales of aerospace-grade fasteners will outpace advances for standard fasteners, rising 13.4% per year through 2013.
“Demand will be spurred by continued government investment in infrastructure, aerospace industries and national defense,” the report states.
During the same period, fastener demand in the U.S. will grow 1.2% per year to $12.5 billion, Freedonia predicts. U.S. aerospace fastener demand is forecasted to increase 1.4% per year to 2013.
Currently, standard fasteners account for 98% of Chinese industrial fastener demand.
Externally threaded fasteners are the dominant standard fastener type, accounting for three-fifths of standard fastener demand in China in 2008.
“They have resisted inroads made by alternative joining methods such as adhesives or welding and will grow at a slightly above average rate,” according to Fasteners in China.
Internally threaded fasteners will increase at a slightly below average pace, while nonthreaded fasteners will post the slowest gains at 9.9 percent annually through 2013, hurt by stagnant growth in construction.
New demand for fasteners in OEM and construction markets will outpace that of MRO markets through 2013.
“OEM will remain the largest market in China, accounting for over three-fourths of total fastener demand, with new sales stimulated by rapid growth in the industrial machinery, motor vehicle, and electrical and electronic product markets.”
Demand for construction fasteners will be driven by government funding for large-scale infrastructure construction and “rising use of higher-performance fastener products in nonbuilding construction.”
The 181-page report is available for $5,200. For more information contact Corinne Gangloff. Tel: 440 684-9600 Email: pr@freedoniagroup.com ©2009 GlobalFastenerNews.com
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