Global Fastener News

John Wolz

Sales are up, but confidence is down in the fastener industry.
Though the majority of fastener companies participating in the End of 2000 Fastener Industry News survey reported sales were up, the profit index and FIN Company Performance Index dropped.
�While sales remain good, profits are down and capital expenditures continue to slide,� commented Tony Casilio of AWP Research.

The FIN Company Performance Index dropped from 7.1 to 6.8.
Casilio pointed out that though confidence is down, �sales figures are fairly strong, with nearly 60% reporting a sales increase in 2000 vs. 1999.�
At 3.6 the overall sales index remains stable from last year.
�Profits are being squeezed, however,� Casilio noted. �Although nearly one-half report profit increases in 2000 vs. 1999, the profit index drops to 3.3 from 3.4, reaching the lowest level in the seven-year history of the profit index.�
A 58.6% majority reported no change in fastener prices in 2000.
�Respondents are optimistic about 2001 sales, with nearly 60% forecasting an increase,� Casilio observed. �But they continue to be cautious about 2001 profit forecasts.�
Confidence in the North American economy fell from 3.5 to 3.0. Confidence in the global economy, which normally runs several notches below North American confidence, nearly caught up this year. Global confidence rose from 2.7 to 2.9, just 0.1 off the new North American ranking.
The good news for fastener employees was that shrinking profits did not stand in the way of pay increases. Nearly 85% of companies granted pay raises averaging 5.2%. Two-thirds of the companies anticipate increases averaging 4.6% in 2001.\