1/30/2013 7:19:00 AM
FIN SURVEY
Distributor inventory edged up in 2012, with the inventory index growing to 4.5, up from 4.4 in 2011.
Stable costs became more widespread, though 10% of distributors saw their costs increase and 3% reported “moderate” decrease in costs in 2012.
After two consecutive years of gross margin gains, margins slipped for distributors in 2012, declining to an average of 36% from 41% the previous year.
“Unsure of economy in 2013 and how it will impact our sales,” one distributor commented. “Availability seems to be okay and global suppliers seem to have shorter lead times.”
The FIN Survey found fasteners widely available in 2012, with a 68% majority claiming no problems obtaining fasteners.
About 32% reported mostly moderate difficulty obtaining certain fasteners in 2012.
One distributor noted overseas sourcing problems.
“We increased overseas sourcing to reduce costs for customers. It has been a challenge to find sources who can make quality parts on time.”
Distributors were the largest group of FIN Survey respondents, comprising 43% of the total.
“Notice the little distributor is disappearing,” one participant commented. “Seems like more and acquisitions and few startups of small companies.” ©2013 GlobalFastenerNews.com
Share: