The 4th EFDA Fastener Distribution Conference
EFDA includes five member associations (ADEFI, BAFD, UDIB, FDS, PRISMEFIX). This three-day meeting was organized by France PRISMEFIX and held at the four-star contemporary Art Deco Hotel, Hotel Lutetia, which was built in 1910 and is also the largest hotel on the Left Bank in Paris. In total 118 people, including delegates from NFDA and TFTA, attended this event. Here are the outlines of the major activities and speeches delivered during the meeting:
Global Platform for Fasteners on May 10th
The GPF (Global Platform for Fasteners) meeting was held in the morning. After Mr. Bernd Stapf, the Chief Secretary and Treasurer of EFDA, addressed the issue about definition of tariff codes. Mr. Jay Queenin, representing NFDA, and Mr. Steven Fang TFTA, briefed the topics they would deliver in the member meeting held in that afternoon.
In the afternoon, Mr. Bernhard Berrang, the President of EFDA, opened the 4th EFDA Fastener Distribution Conference with a short but welcoming speech. He then talked about the current economics and fastener industry.
Economic Perspectives for Europe by Professor Dr. W. Franz
Dr. W. Franz shared his views on the current economic crisis in the Euro Area. He pointed out that, in the long run, a framework should be established for Solid Fiscal Policy and a Stable Financial System while the priority in the short run should solve the current systemic crisis. He also talked about the issue that many people are concerned with - should Greece leave the Euro area? In his opinion, at this moment, they should not, or the Euro currency union will collapse, and other countries will leave the Euro area. By the end of his speech, he concluded in both optimism and pessimism.
Optimistic - With EFSF (European Stability Mechanism) which should last through 2013, permanent ESM (European Financial Stability Facility) plus national stability programs of the crisis countries will convince financial markets.
Pessimism - Financial markets continue to attack crisis countries via interest spreads and therefore leads to deadly sin.
Situation of the Fastener Trade in USA by NFDA President, Mr. Jay Queenin
Besides an NFDA update, Mr. Queenin also included a "United States Economic Review" and "Trends in North American Distribution" in his speech. He mentioned that the rises of various statistics, including the US Leading Indicator, Purchasing Managers Index, and Fastener Distributor Index, (FDI) which has just been initiated in Feb 2012, and liquidity is not an issue. Exports are up, continued simulative monetary policy, rising employment, banks are lending, and retail sales up. These all indicate the economic growth in US. However, he also reminded us of the economic perspectives for US in next few years:
Continued expansion through mid-2013 (18 months)
Possible recession at the end of 2013 through 2014
Possible growth 2015-2017
In closing, Mr. Queenin concluded his speech identifying the following trends in North American Distribution.
1) This industry continues to consolidate toward the big conglomerates.
2) Supply chain is forced to be more agile on inventory turns, reducing lead time and the elimination of any quality disruptions.
3) More US companies, including mid-level distribution companies, have multiple locations around the globe. Globalization is becoming commonplace.
4) Worker productivity in US in 2009 and 2010 has been substantially increased as a result of the new economic reality that the same production output must be done with less manpower.
5) Less pressure on anti-dumping tariffs since manufacturing productivity has increased, cost of business in Asia is rising, US exports are increasing, and employment continues to improve.
Market Situation in Taiwan & Asia by TFTA Consultant, Mr. Steven Fang
After a brief introduction about TFTA, Mr. Steven Fang presented several statistics indicating increasing export dollars, while weight increases are minimal when compared to last few years. Unit price per kg is record high. It shows Taiwan is supplying more non-standard products of higher quality, value-added services and products. Mr. Fang also warned the audience about possible cost increases in July or August due to the coming oil and electricity price increases in Taiwan. His suggestion is to place more orders before price rise. Besides, after reviewing the statistics of total export amounts by Europe, USA and Japan, Germany was found as the largest country in 2009 and 2012, even though China was the largest in 2011.
By the end of his speech, Mr. Fang reiterated that Taiwan is striving to supply specialty parts of high quality, and value-added services for customers. He also stressed Taiwan fully supports fair trade and he doesn't believe that overprotective measures, such as anti-dumping duties, will secure future growth.
On May 11th
Thanks to PRISMEFIX's help, we were able to visit SNECMA, a French high-tech enterprise in the field of aerospace - aircraft engines and parts. It was indeed quite an experience for all of us.
In the evening, dinner was served on the boat "Parisien" travelling on the River Seine. The people, historic and magnificent buildings, on both sides of river along with the Eiffel Tower, made this dinner even more enjoyable and as a perfect ending for this trip.
Postscript :
Most participants did greatly benefit from the meetings, information changes, tour to SNECMA and social conversations in these 3 days.
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