John Wolz

Production of industrial machinery and aerospace equipment will increase U.S. industrial fastener demand nearly 4% annually to $12.3 billion\, according to the latest edition of Industrial Fasteners, an updated study by the Freedonia Group Inc.
Gains are strong in the OEM market, which is expected to shrug off the effects of economic recession from 1999-2004 and increase 4.3% per year, Freedonia predicts. Greater vehicle production will boost business, though output will not be as strong as gains in the past decade.
The move to larger models reportedly increased the value of fasteners in the average vehicle 43% to $265 since 1994. However, SUV and large truck production will level off, stabilizing fastener auto values.
“Functional competition from alternative joining technologies like adhesives and cinching, as well as a moderation in residential building construction, will also restrain demand through 2009,” the group stated.
Keeping pace with previous estimates, demand for specialty fasteners is expected to expand more rapidly than sales of commodity fasteners.
While predicting continued aerospace fastener growth through gains in efficiency, the report warned that new design techniques could dampen long-term fastener demand.
“The increased use of composite bodies for airplanes could potentially eliminate more than one million fasteners in each plane produced,” Freedonia noted.
Plastic fasteners will continue to see a strong 5% growth rate over the next four years, due to increasing market share and a rise in shipments of electrical and electronic products.
Industrial fastener demand in the U.S. totaled $10.1 billion in 2004, with aerospace fasteners comprising 14.5% of overall sales. Market share for aerospace products is expected to grow to 15.8% of overall fastener demand by 2009.
Editor’s Note: The 232-page report is available for $4,100 from Cleveland, OH-based Freedonia. For information contact Corinne Gangloff. Tel: 440 684-9600 Web: freedoniagroup.com �2005 FastenerNews.com