Indicators for 2005

John Wolz

” Profits – Nearly 60% of fastener companies participating in the End of 2004 FIN Survey expect profits to improve for 2005.

” Sales – A total of 78.1% of companies forecast higher sales in 2005.

” Costs – Nearly three-quarters of FIN Survey participants predict costs will increase during 2005. Only 5.8% expect costs to drop.

” Confidence – North American economic confidence remains steady, and confidence in the global economy rose to match North America.

” Manufacturers – Approximately two-thirds of fastener manufacturers anticipate raw material and other costs will increase during 2005. A total of 80% of fastener manu-facturers predict 2005 sales will increase, but a smaller majority expects profits will rise.

Figures near 60% reported raw material and finished goods inventories were up as 2005 began. Manufacturers expect to function at a higher operating capacity during the year.

” Prices – More than 70% of fastener companies anticipate raising fastener prices in the next six months.

” Employment – More than a third of fastener employers predict they will do more hiring during 2005, but the majority expect “no change” in hiring.

” Capital Expenditures – While 45.2% of fastener companies plan to increase capital expenditures during 2005, nearly that percentage (44.5%) anticipate their expenditures will remain the same. Under 10% plan to cut capital investment.

” Pay Raises – While nearly 60% plan to give pay raises, nearly a third of fastener employers remain uncertain of 2005 pay plans. \ �2005 FastenerNews.com