Most industries find the post-pandemic world to be a challenging environment in which inventories of raw materials and basic components are almost drained. A study conducted by Coopers & Lybrand Consulting for the Automotive Industry Fasteners Group (AIFG) found that the $1 billion North American steel fastener industry may be on the verge of a profitability crisis that ultimately could eventually lead to a capacity shortage.
A Global Fastener Crisis
Industrial fasteners such as screws, bolts, inserts, pull-thru countersunk blind rivets, and threaded standoff pillars are holding the economic fabric of our society together. From appliances and electronics to automobiles and medical devices, everything is manufactured with different types of fasteners. The U.S. demand for industrial fasteners is expected to increase 2.7% per year through 2023 to $16.5 billion, which means fulfilling domestic demand should be a priority.
The oil and gas industry, for example, is being severely affected, which could result in product shortages. Drilling contract cancelations would be even more worrisome.
This supply chain disruption, however, extends beyond America’s borders.
Global supply chain challenges are a major concern of fastener distributors and manufacturers.
At the end of April 2020, the European fastener industry was struggling to stay afloat. In Spain, many automotive manufacturers were forced to cease production. The same sector experienced significant furloughs in the UK, while Italy’s biomedical and pharmaceuticals industries came to a complete standstill. With demand suppressed, construction projects were also put on hold as a result of the fastener crisis. In France, demand fell by a whopping 60% in April.
Predictions around consumer and business demand, however, are not all that gloomy. Market experts think the global demand for fasteners should reach the amount of $140 billion by 2023.
According to Fact.MR, a market intelligence firm, “rising projects [and demands from] automotive, construction, and industrial manufacturers, investing heavily…as a requirement for threaded, non-threaded, and aerospace-grade fasteners are accelerating, boosting demand through 2031.”
Analysts also expect to see an increase in the use of a wide variety of industrial fasteners including cable ties, rivets, and screws. Despite the rise of electric motors, new opportunities are emerging for fasteners and fastener products. Take for instance the area of structural architecture. Novel planning and design methods rely on fasteners to build impressive structures.
As the whole world adjusts to a new normal, most countries are planning to restart their way to growth, even if at a slower pace. On the other hand, the price pressure generated by shortages is expected to follow an upward trajectory. This is why experts recommend purchasing inventory before costs escalate even higher.
Fasteners You Can Rely On
At ASMC Industrial, we go above and beyond to ensure a reliable inventory of over 15 million fasteners and other essential tools, so you can keep production going safely and efficiently.
Not only do we ship worldwide, but we also offer free standard shipping on all domestic orders.
Shop now while inventory is sufficient and affordable. Browse our vast selection of products made in the USA and enjoy large quantity discounts. Our friendly customer service staff is here to assist you with any questions you may have so give us a call at 888-660-0334 or email firstname.lastname@example.org.