1/27/2012 12:38:00 AM
FIN SURVEY
Distributor inventory continued to rise in 2011, with the inventory index growing to 4.4, up from 4.1 the previous year.
Costs grew for many, though 7% of distributors saw their costs decrease “moderately” in 2011 and an additional 40% held costs in check — down from the one-half of distributors who reported stable costs in 2010.
However, 50% of distributors marked “moderate” to “strong” increases in costs during 2011, driving the cost index up to 3.2 from 2.8 the previous year.
Gross margin percentage achieved its second straight year of growth, with margins increasing from 39.4% to 41%.
“We sell to a wide variety of fastener distributors,” one manufacturer stated. “Business seems quite healthy for most.”
The FIN Survey found fasteners predominately available in 2011, with the percentage of distributors claiming problems with fastener availability increasing from 36% in 2010 to 45% last year.
Nearly two in ten distributors — 17% — reported “significant” sourcing problems in 2011, while another 28.5% had “moderate” difficulty obtaining fasteners in a year that brought both top-and-bottom line growth. experienced problems the before the recession.
Distributor inventory continued to rise in 2011, with the inventory index growing to 4.4, up from 4.1 the previous year.
Costs grew for many, though 7% of distributors saw their costs decrease “moderately” in 2011 and an additional 40% held costs in check — down from the one-half of distributors who reported stable costs in 2010.
However, 50% of distributors marked “moderate” to “strong” increases in costs during 2011, driving the cost index up to 3.2 from 2.8 the previous year.
Gross margin percentage achieved its second straight year of growth, with margins increasing from 39.4% to 41%.
“We sell to a wide variety of fastener distributors,” one manufacturer stated. “Business seems quite healthy for most.”
The FIN Survey found fasteners predominately available in 2011, with the percentage of distributors claiming problems with fastener availability increasing from 36% in 2010 to 45% last year.
Nearly two in ten distributors — 17% — reported “significant” sourcing problems in 2011, while another 28.5% had “moderate” difficulty obtaining fasteners in a year that brought both top-and-bottom line growth. experienced problems the before the recession. ©2012 GlobalFastenerNews.com
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