4/13/2009
HEADLINES
Plomer, Valeriano Lead Industrial Fasteners Institute
IFI Supplier Source Draws 31,570
The IFI’s Find a Supplier Program was used 31,570 times during its first full calendar year.
Fastener buyers use the IFI website to find fastener suppliers: industrial-fasteners.org
The IFI Technology Connection for web-based information retrieval systems was launched May 1, 2008.Fastener distributors can find technical data or make information available to customers through a secure website location.
The IFI published its Supplemental Book of IFI Standards & Technical Bulletins 2008 as a compilation of 31 IFI standards plus 16 IFI technical bulletins not included in the 7th edition of Inch Fasteners Standards or the 3rd edition of Metric Fasteners Standards.
During 2008 the IFI also released IFI-562 / Acceptance Gaging for Fastener Drive Systems with Six Lobes, which covers proper gages and methods for inspection of products with six lobed driving systems.
The IFI is an association of North American manufacturers of bolts, nuts, screws, rivets, pins, washer and custom formed parts, and suppliers.
Edward Plomer Jr. of ITW Shakeproof/Anchor/Medalist is the new chair of the Industrial Fasteners Institute and Larry Valeriano of California Screw Products Corp. is the new vice chair.
Plomer began his fastener career as a fastener buyer for the Ford Motor Co. in 1976 after earning a finance degree. He worked for 19 years as sales director for OEM supplier Progressive Stamping Co. Plomer joined ITW in 1999 as sales manager for ITW Shakeproof, Anchor and Medalist brands. Now he serves as ITW vice president of sales & marketing. In addition, Plomer has served on IFI’s board of directors, as well as holding chair and vice chair positions with the IFI’s automotive division.
Plomer succeeds Bryan Burgy of Rockford Fastener Inc.
Valeriano started in the fastener industry in 1983 as a machinist at aerospace manufacturer FIT Inc. He joined California Screw in 1985.
Four years ago Valeriano and two other employees bought Paramount, CA-based California Screw from the original owners. Valeriano is now president and general manager.
The aerospace manufacturer has 57 employees and has grown from $8 million in annual sales in 2005 to $21 million in 2008.
Division leaders are:
Division I/Industrial: John Grabner, Cardinal Fastener & Specialty Co. Inc., chair; Preston Boyd, Hill Fastener, vice chair.
Division II/Aerospace: Tom Rutan, B&B Specialties Inc/GS Aerospace, chair; Owe Carlsson, Alcoa Fastening Systems, technical chair.
Division III/Automotive: Mark Quebbeman, Semblex Corporation.
Associates/Suppliers: Bruce Smith, Carpenter Technology Corp.; Alan Hariton, Hariton Machinery.
IFI: Aerospace ‘Robust,’ Industrial ‘O.K.’ and Automotive ‘Down’
The Industrial Fasteners Institute annual report pegs the 2007 global demand for fasteners at over US$52 billion and estimates that when final 2008 figures are available the value “will somewhat exceed that.”
The Asia/Pacific region uses 32.7% of the world fasteners, North America 28.1%, Western Europe 26.8%. The IFI predicts demand will continue to shift toward the developing areas of Eastern Europe, Africa, Latin America and Middle East, which now total 6%, plus Asia/Pacific areas. North America, Western Europe and Japan will show slower growth.
The IFI’s end of 2008 report cited Freedonia’s estimate of U.S. industrial fastener demand growing from $11.8 billion in 2008 to $13.2 billion in 2012 and $15 billion by 2017.
OEMs account for about three quarters of the industrial fasteners and automotive is one third of the OEM total.
Construction and MRO accounts for nearly a third of fastener usage.
• The IFI noted that the auto industry dropped to 13.2 million units for the U.S., 1.6m for Canada and 1m for Mexico in 2008. Projections are down for 2009.
In addition, only the small cars category is gaining sales. Large automobiles and SUVs were down more than 30%.
• Aerospace continues to take orders for airplanes that are economical to operate, with backlogs for many aircraft.
“Aerospace thus remains a very robust industry with 2008 profits projected to be $20.8 billion with profits as a percent of sales averaging 8.6%,” the IFI reported.
• The industrial products segment has slowed but “were generally O.K.” in the first three quarters of 2008. Certain areas were tougher such as appliances due to slowing construction. “Conditions were definitely slower but not terrible until year end when liquidity dried up and probably we’ll see the same going into 2009, when indications are most everything will seem to simply stop.”
• The North American construction machinery demand declined steadily in 2008 and is projected to drop another 21% in 2009. In the U.S. housing starts fell 32% in the third quarter of 2008 and non-residential construction was off 11%.
“Like construction machinery, structural fasteners appear to be the likely beneficiary of the Obama stimulus goals. Highways, bridges, schools, hospitals and government buildings and facilities all appear to be the intended beneficiaries of his announced stimulus package,” according to the IFI’s annual report.
• The agricultural sector has enjoyed five consecutive years of record sales and earnings, but sales for 2009 are projected to be flat.
• U.S. fastener imports in 2008 totaled $4.2 billion, while exports – mostly aerospace – were $2.6 billion.
The top countries of origin in 2008 were: Taiwan $1.3b or 32%; China $960m, 22.8%; Japan $520m, 12.4%; Canada $353m, 8.4%; Germany $208m, 4.9%; Italy $100m, 2.4%; UK $98m, 2.3%; India $87, 2.1%; South Korea $87m, 2.1%; Thailand $86m, 2.0%; other countries $369m, 8.7%.
• With duties on fasteners from China and Taiwan by Canada and South Africa and from China by the European Union and maybe Mexico this year, there is question of where Chinese exports will be sent. Washington D.C. trade attorneys are advising the IFI “as this plays out.”
• The initial skyrocketing raw material and energy costs in 2008 followed by plunging prices created concerns.
“It is almost certain China will again cause problems in these areas, driving up import prices, iron ore contract rates, scrap prices and the cost of other alloying materials, but that may not happen in 2009.
U.S. raw steel production declined for the last five months of 2008. Mills operated at only 49% capacity at the end of the year, down from 91% in August.
• All IFI members participating in a survey oppose “card check” legislation. Respondents showed support for legislation allowing industries to bring trade cases against countries that manipulate their currency; opposition to “cap & trade” climate legislation that would increase natural gas prices; opposition to repealing LIFO, domestic production tax credit or the R&D tax credit; opposition to tax increases on small businesses as well as support for tax credits, nationwide pooling benefit small businesses providing health care.
• More IFI survey respondents export than import. Nearly two-thirds (66%) of IFI respondents export directly, while 57% import fasteners. Ninety percent sell fasteners used in exported products.
• Half buy only domestic wire rod and the other half buy a combination of domestic and imported.
• A total of 62% reported raw materials range from 25% to 50% of fastener costs, while 20% peg the cost as higher and 20% lower.
Independence, OH-based IFI reports 93 manufacturing members and 30 associate members. Rob Harris is managing director.
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