5/1/2012 12:35:00 AM
NEWS BRIEFS
Report: U.S. Fastener Industry Sees Resurgence
For years U.S. fastener manufacturers have railed against imports. Some have funded “Buy American” ad campaigns, while others have pointed to the critical importance of quality control.
Still others have urged a closer look at global risks as the supply chain noose tightened further and further.
All made valid points, none of which unfortunately added up to a resurgence in domestic production.
But two key developments in 2011 may prove to be the catalysts for the resurgence of the U.S. fastener industry, according to Assembly Magazine.
Two of the four costliest natural disasters in history occurred last year: the earthquake and tsunami in Japan and massive flooding in Thailand.
These events have reportedly forced manufacturers to rethink their supply chain, leading to what a few years ago seemed unthinkable: the reshoring of industry assembly jobs to the U.S., according to Assembly Magazine.
“Despite what some folks might think, the American fastener industry is alive and thriving,” writes Austin Weber of Assembly Magazine. “And, as U.S. manufacturers reshore assembly, domestically made screws, nuts, bolts and rivets will play a leading role.”
Reshoring is expected to dominate American manufacturing over the next decade, adding two to three million manufacturing jobs beginning in 2015.
Much of the assembly work that fled to China in recent years has begun to reverse course, creating increased demand for U.S. fasteners.
“It doesn’t make sense to import fasteners as manufacturers reshore assembly,” says Bob Hill, manager of the IFI’s industrial products division. “There’s growing demand for domestic sources today.”
Increasing demand for American-made fasteners is central to the reshoring movement, Elgin Fastener Group VP Joe Hertz told Assembly Magazine.
“Other than skepticism and uncertainty in the economy, the only thing that’s holding manufacturers back from more widespread use of domestic fasteners is long-term contracts,” Hertz explained. “Many companies have to wait for those agreements to expire. But, once they do, we’ll see a large increase in demand.”
IFI market data shows that manufacturers consumed $13.2 billion worth of industrial fasteners in 2011, with more than two-thirds of those fasteners produced North America.
To prepare for reshoring, fastener suppliers are ramping up production and investing in new equipment, Assembly Magazine reports.
As demand swells, observers predict a wave of acquisitions sweeping through the industry. ©2012 GlobalFastenerNews.com
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