Numerous domestic fastener manufacturers are promoting their U.S. operations in advertising, but there are varying responses as to whether or how much the tariffs are boosting domestic sales.

“The tariffs are having an impact on Birmingham Fastener across all facets of our business,” president Brad Tinney told FIN.

“From a costing perspective on our distribution segments, the tariffs have driven cost up on many items we import from China. Looking at our oil and gas segments, material costs have risen in the same manner.”

“Our manufacturing segments are seeing increased steel prices that are driving our overall cost up. In the natural flow of business, this has caused other countries to increase their prices to America as China is the leader on many fastener components we buy such as hex bolts, studs, and nuts,” Tinney added.

“From a selling perspective, tariffs have forced the market to take some increases and this has benefited our top line sales price,” Tinney reflected. “It has been difficult in many cases to pass the entire cost along to some customers; in-turn, we have witnessed some margin erosion as a lot of our business is relationship driven and we have elected to keep business versus risking losing it due to cheaper pricing from competitors.”

However, “there is also no question the tariff has aided in the reshoring of many items that we can manufacture,” Tinney finds.

“Many customers are now realizing that China is not the most cost effective option on certain items, especially if you look at all hard and soft costs that come along with importing.”

Birmingham Fastener will continue to look for more cost effective sources, and expand our manufacturing capability and capacity,” Tinney said.

Steve Wilson of Crescent Manufacturing of Burlington, CT, reports “definite” positive sales results which he attributes to tariffs.  “Our backlog is at a record level and our business is the strongest ever,” Wilson told FIN. “We have a record number of employees. Thank you Pres. Trump!”

Others were uncertain.

“It’s hard to tell,” distribution sales manager Michael Lentini of Spirol International of Danielson, CT reflected. “It looks like tariffs are affecting our sales into China, but with the increases in materials and labor over the past year, it’s hard to tell what’s due to the tariffs. The tariffs are not the only reason we had material increases last year.”

Jake Davis, president of BTM Manufacturing of Kansas City, MO, noted BTM “only uses domestic raw material and our sales were up around 11.5% for our FY 2018-2019. We have seen the pricing for both ferrous and non-ferrous raw materials level off for the past few months.”

BTM manufactures threaded fasteners and bent wire products.

“Everything I read at the moment speaks of a manufacturing slow down, however we have yet to see it,” Davis added.

“No,” Steve Payne, VP of sales & marketing for Illinois-base Safety Socket LLC, said in a one-word response to the question if tariffs have had an effect on fastener sales.

The purchasers for a West Coast manufacturer noted tariffs “wreaked havoc on the domestic steel markets for a few months when they were first announced at the beginning of 2018, but since then it’s been pretty smooth sailing.”

A VP for the manufacturer said tariffs on fasteners from China “makes our larger domestic hex bolts more competitive. We still aren’t competitive against smaller sizes.”

The VP also noted the exchange rate between the U.S. and Canada is quite high, making U.S. products “more competitive against manufacturers in Canada that source some round bar in the U.S.

He also pointed to China devaluing its currency “which essentially means that they are absorbing some of the tariffs so the cost of goods coming into the U.S. does not bear the brunt of the full 25% tariff.”

For Arkansas-based plastic fasteners manufacturer Heidi Volltrauer of Volt Industrial Plastics Inc.: “We have not noticed any effect from the tariffs for us, but this could be in our future as a trickle down. We manufacture everything in-house, so it really does not affect us directly.”

One Ohio manufacturer, not wanting to be quoted, told FIN he finds “no” effect from tariffs for his company, but retaliation by China is “hurting the farmers” in his region. Most of his sales are “repeat business” that tariffs don’t change.  

He suggests “fair” tariffs, such as each country charging 5%.

Here is a sampling of how U.S. manufacturers are advertising their fasteners:

Ken Forging’s bold headline: “American Made” is followed by “Proud Domestic Manufacturer Using American Metal and American Pride Since 1970.”

Crescent Manufacturing’s website features an American flag background on the home page and “Precision Fasteners Made in the USA Since 1960.”

Among companies including “Made in USA” and / or a U.S. flag in advertising: Superior Washer, WJ Roberts, Spirol, Albany Screw & Brass Corp, Western Wire Products, Alfa Tools, Lok-Mor Inc, All American Washer Works and Hanger Bolt.

Chicago Hardware & Fixture Co. adds “only”: “Made Only in America for Over 100 Years.”

Tamper-Pruf Screws adds “Proudly”: “Screws Proudly Made in the USA.”

AMPG gets more specific: “Made in Indianapolis.”

Ajaxwire’s phrase is: “American Made Since 1933,” while Solon Mfg uses: “Made in the USA Since 1949.”

Loss Prevention Fasteners: “A Buy American Act Supplier.”

Prestige Stamping: “Domestic Manufactures of Type 1 & Type 3 Structural Washers.”

National Machinery advertises its fastener machinery rebuilding with the headline: “Let Us Rebuild Your American Classic” above a picture of a Ford Mustang.

A U.S. flag dominates the top quarter of an Ideal Fasteners Inc. ad.

Canadian-based Leland Industries adjusts the “Made in USA” phrase to: “100% North American Made.”