Global Fastener News

1993 FIN – Industrial Fastener Shipments to Grow 6% Per Year As Markets Recover

September 30
00:00 2011

 

April 22, 1993 FIN – Industrial fastener shipments in the U.S. are projected to increase 6% annually, reaching $7.3 billion in 1997. A new industry study by the Freedonia Group Inc. accredits this growth to expanding activity in motor vehicles and other durable goods shipments and new building construction.
According to the Cleveland-based Freedonia Group, other factors contributing to growth include innovations in products and materials and increased use of quality control procedures, which make these components, are cost effective with alternative joining and bonding techniques, as well as imported fastening products. Overseas markets—especially in South America and Western Europe—are expected to provide US-based industrial fastener manufacturers with opportunities as the global economy recovers from the recession of the early 1990’s.

These and other factors are discussed in Freedonia’s Industry Study #466, Industrial Fasteners.

Industrial Fasteners for nonaircraft use are expected to grow 6.3% annually through 1997. Within this sector, internally and externally threaded fasteners (generally used in conjunction with each other) will exhibit the fastest growth based on improved manufacturing productivity and product quality.

Nonthreaded fasteners such as rivets, washers and pins will see below-average expansion through 1997 due to competition from alternative joining technologies (e.g., electrical machinery and fabricated metal products).

Other nonaircraft fasteners such as locknuts will benefit from improved demand in motor vehicle and appliance markets for reasons of safety and accurate nut positioning.

Among aircraft/aerospace fasteners (i.e., fasteners manufactured to aircraft/aerospace specifications), shipments are expected to grow 5% annually through 1997 despite ongoing cuts in defense and related spending. A rebound in commercial aircraft from financial difficulties and restructuring in the early 1990’s will offset these cuts.

U.S. manufacturers of aerospace fasteners will also benefit from growing demand in foreign markets due to their association with the world’s largest and most technologically advanced aerospace/aircraft industry and significant production cost advantages.

Aggregate sales of industrial fasteners will increase 5.5% per year through 1997 to $7.8 billion.

• The OEM (original equipment manufacturers’) market will benefit from growth in key durable goods markets (e.g., industrial machinery and equipment and motor vehicle production) as well as moderate opportunities in the aircraft / aerospace industry.

• The MRO (maintenance, repair and operations) market, a relatively stable market which uses industrial fasteners to hold components of equipment already installed and in use, will experience increased sales totaling 3.9% annually through 1997.

• The construction market, however, is expected to see above-average gains of 6% annually through 1997 due to a boost in the money being spent to rebuild and repair the deteriorating US public infrastructure through 1997. ©1993/2011 Fastener Industry News

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