FIN SURVEY

Fastener manufacturers operated at a higher percent of capacity in 2010, increased inventory turnovers and finished goods on hand and all participants reported raw material prices were up from the year before.
 

At what percent of capacity did you operate in 2010?

Manufacturers were working more in 2010 operating at an average of 64% of plant capacity, compared with 59.3% during 2009. The 2009 figure was the lowest in the 17 years the FIN Survey has charted the figure. 

The high was 79.6% for 1996.
 

How many inventory turnovers did you have in 2010?

Inventory turnovers rose to 3.9 for 2010, up from 2.8 for the previous year.

The 2.8 is the lowest in the 14 years it has been asked in the FIN Survey. The previous low was 4.4 in 2007. 

The high was 6.7 in 2000.
 

How do finished goods on hand compare with a year ago?

• Reaching 3.2, the Finished Goods Index rebounded after declining for three years.  The index was up for 2009’s record low of 2.2.

The high was 3.5 for 2004.
 

How does your current raw material inventory compare with a year ago?

• At 3.2 the Raw Material Inventory rebounded after plummeting to 2.2 for 2009.

Following the 2009 decrease, in which a majority of FIN Survey respondents reported a “moderate decrease” in inventory, 63.4% reported increases for 2010.
 

Did you have difficulty obtaining raw materials in 2010?

Only 15% of manufacturers reported significant difficulty obtaining raw materials during 2010. 

A total of 43% found moderate difficulty and 42% found no difficulty.
 

Any change in price paid for steel during the past six months?

• Steel prices rose during 2010 with one-third reporting the cost up 20% or more. No participants reported steel prices down.

The End of 2010 Raw Material Price Index for fastener manufacturers jumped to 4.2 from 3.6 a year ago and 3.4 at the end of 2008.

Over the 13 years the price index has ranged from 2.6 for 1998 to 4.7 in 2004 and now averages 3.7.
 

What change do you anticipate in raw material prices in next six months?

A 53.8% majority of fastener manufacturers anticipate raw material prices hikes in the coming year.  

A total of 30.8% expect prices to remain the same and 15.4% predict moderate or strong decreases. ©2011 GlobalFastenerNews.com