1/27/2015 7:30:00 PM
HEADLINES
PERSPECTIVE: Fastener Industry Comments
The End of 2014 FIN Survey results are inside this issue of FIN. Beyond the statistics, here is a sampling of general comments and following problems mentioned by End of 2014 FIN Survey participants:
“The industry was strong in 2014.”
“Indicators are material increases in 2015 may impact some growth, however things should remain steady with conservative growth.”
“The industrial market looks very positive for growth in 2015-2016.”
“Slower growth for 2015, but still think it will be a strong year for the automotive industry and other fastener markets.”
“The industry is showing signs of being ripe for consolidation by acquisition.”
“Domestically the number of fastener manufacturers continues to shrink as does the number of manufacturers of steel for the fastener industry. Long term this trend does not bode well for the country.”
“Bring it back to America.”
“Worried about one major importer being the only big player left in the market.”
“Consolidations will eliminate distributor options for suppliers. A continuing storm cloud a coming.”
“Buyer loyalty at OEMs continues to be an issue an price is a main determinate in maintaining business.”
“Developing new accounts is a real challenge.”
“Distribution seems to be stagnant.”
“Fewer choices for distributors.”
“The small distributors are going, going, gone to consolidation. Just like the corner grocery store is gone.”
“I like that it isn’t a ‘glamour’ industry like real estate, politics and Hollywood. We are real people producing real products.”
“So much fun explaining to those outside the industry how big and vital it is.”
Problems cited by FIN Survey participants:
“Capital equipment.”
“Cash flow and finding good sales people.”
“Competitors who cheat. I hate government regulations, but I need them for competitors who cheat.”
Multiple health care cost comments: “Controlling health insurance increases,” “Government, health insurance and workers,” and “New health care regs.”
“Correct info about pricing in increases and sales.”
“Delivery of containers due to the West Coast slowdown.”
“Government sequester.”
“Inventory. With slowdown in China factories, struggle to keep up with rising wages, less dependable utilities and on the U.S. side port union issues.”
“Keeping the customer happy with fast service. Seems to be one of our strong points with deep inventory. (It’s) a good selling point over Fastenal that does not keep their stores stocked well at all!”
“Keeping up with customer product needs.”
“Keeping up with growth.”
“Lead times for out-of-stock inventory.”
“Margin erosion.”
Multiple “people” comments including: “Qualified People,” “Employees,” “Finding good talent to employ at all levels of the company,” “training and growth,” “Labor availability to replace retirees. Applicants have difficulty passing drug tests, lack basic education skills.”
“Plating issues in Taiwan and the West Coast port situation that will continue in the foreseeable future.”
“Ramping up … happy news is we have to work harder, fastener with new orders.”
“Secondary source cost increases.”
“Reduction in customer schedules due to the nature of their business. In some cases, schedules declined faster than we could turn off the spigot.”
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