Trends: More Engineering Coming

John Wolz

Editor�s Note: The Fastener Industry Trends Breakfast at the National Industrial Fastener Show/West drew about 125 people to hear commentary from the five panelists. The following are excerpts:

� As the 4th generation in a family-owned domestic manufacturer, Jim Sullivan of Chicago Hardware & Fixture Co. stressed that he believes in �free trade, but fair free trade.� However, he urged U.S. distributors to think about the economic importance of domestic production. �We need to emphasize �Buy American.��

� Tim Meyer, Meyer Retaining Rings, said industry isn�t just waiting for economic recover. �While the economy is slow, our engineers haven�t gone to sleep. That will lead to lots of new applications.�
�The amount of money it takes to get involved in this business precludes a lot from getting in,� Meyer pointed out.

� Rick Malson of Ramco observed that the locknut business is changing rapidly and manufacturers are facing increasing price pressure.
Customers are demanding more than just price decreases and service increases, Malson pointed out. �Customers are demanding zero defects. It will be done with improved technology� such as laser sorting.
Reverse auctions only �beat up on current vendors,� Malson warned. Ramco has walked away from unprofitable business, he said.

� Nilo Urbano, Nylok Fasteners, reports locking technology is increasing in popularity with automakers.
�Watch for more engineering yielding special coatings,� Urbano predicted.
The IT industry needs parts smaller and thinner and with a limited number of threads, Urbano noted.
�Customers have power and can be tough,� he observed. Customers are pushing for zero defects.
� Grady Shipman of Volt Industrial sees a �fundamental shift in the amount of inventories being held. Distributors don�t hold unless the inventory is immediately invoiceable.�
Buyers of plastic and nylon fasteners and other products �have been holding back� on production, waiting for signals the economy would improve.
Shipman observed that a dramatic increase in the types of materials being tested will result in new products in coming years.\�2003 FastenerNews.com