The seasonally adjusted Fastener Distributor Index (FDI) moderated to 54.5 in November, down from 56.5 the previous month.

The sales index improved as “sales outpaced expectations in what is normally a softer month of November.”

“Slightly weaker employment and customer inventory levels drove the modest m/m contraction in the FDI,” R.W. Baird analyst David Manthey wrote.

“Pricing, however, took a slight step up m/m, perhaps in part reflecting passing on recent freight increases.”

The Forward Looking Index dipped to 63.2 from 64.5 in October.

“Taking the FDI and FLI together, we believe November fastener market conditions showed continued m/m improvement but at a slightly lower rate than October,” Manthey stated.

The FDI employment index declined to 52.7 reading from 58.3 the previous month.

“However, based on past historical responses, it is not unusual for employment levels to take a modest step back in the seasonally slow month of November.”

Nearly seven in 10 respondents acknowledged price increases on shipping.  Additionally, 67% of respondents indicated they are seeing increased lead times as a result of shipping disruptions.

Respondents noted multiple causes, including the pandemic event, shortages of shipping containers, labor shortages, and holiday shipments, among others.

Shipments coming from Asian suppliers seem to be most impacted. Per one respondent,

“Ocean carriers restricted capacity at the height of COVID-19 disruptions… now hesitant to bring on new capacity too quickly,” one respondent noted.

“Backlog at ports, shortage of containers overseas, shortage of labor due to Covid-19, trucking industry backed up due to holiday freight,” another added.

On price increases, one respondent said: “Inbound from Asia is ridiculous.  Ocean carriers are taking advantage of us!  Hopefully things get better after Lunar New Year.”

The FDI is a monthly survey of North American fastener distributors conducted by the FCH Sourcing Network, the National Fastener Distributors Association and Baird.  Web: fdisurvey.com