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Investment Up In U.S. Fastener Industry
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2014-05-28
The End of 2013 FIN Survey of the Fastener Industry found that 46% of businesses reported a “moderate” to “strong” increase in capital expenditures during 2013. It appears that trend is continuing so far in 2014.
Carpenter Technology Corp. reportedly plans to add 400,000 lb of titanium finishing capacity to boost its market role in aerospace fasteners.
Grainger reported sales, including fasteners, grew 5% to a record $9.4 billion in 2013. Net earnings increased 16% to $797 million. “We made significant investments aimed directly at increasing our scale and accelerating share gains in the large and highly fragmented MRO market,” stated CEO Jim Ryan. “Going forward, we will continue to invest in areas such as eCommerce, sales force expansion, inventory management solutions and distribution centers in order to drive market share growth and deliver solid returns.”
RTI International Metals Inc. acquired 3D products manufacturer Directed Manufacturing for $23 million cash.
Market conditions seem to encourage more investment. The FIN Survey found that a solid majority of survey participants forecasting higher sales and profits amid moderate cost increases for 2014. About 77% of businesses predict sales gains, while 57% expect profit growth and 89% anticipate flat or “moderate” cost increases.
U.S. demand for industrial fasteners is expected to increase 4.3% per year to $14.8 billion in 2017, according to a 260-page report by the Freedonia Group. Gains will be supported by rebounding levels of motor vehicle manufacturing, a segment that makes up roughly one-quarter of all fastener demand. Growth in demand for standard fasteners is forecast to outpace that for aerospace-grade products. Externally threaded standard fasteners will remain the largest single product category, posting the fastest gains, along with application-specific products. Demand for aerospace-grade fasteners will improve from the growth registered during the 2007-2012 period, as aerospace equipment shipments accelerate.
Carpenter Technology Corp. reportedly plans to add 400,000 lb of titanium finishing capacity to boost its market role in aerospace fasteners.
Grainger reported sales, including fasteners, grew 5% to a record $9.4 billion in 2013. Net earnings increased 16% to $797 million. “We made significant investments aimed directly at increasing our scale and accelerating share gains in the large and highly fragmented MRO market,” stated CEO Jim Ryan. “Going forward, we will continue to invest in areas such as eCommerce, sales force expansion, inventory management solutions and distribution centers in order to drive market share growth and deliver solid returns.”
RTI International Metals Inc. acquired 3D products manufacturer Directed Manufacturing for $23 million cash.
Market conditions seem to encourage more investment. The FIN Survey found that a solid majority of survey participants forecasting higher sales and profits amid moderate cost increases for 2014. About 77% of businesses predict sales gains, while 57% expect profit growth and 89% anticipate flat or “moderate” cost increases.
U.S. demand for industrial fasteners is expected to increase 4.3% per year to $14.8 billion in 2017, according to a 260-page report by the Freedonia Group. Gains will be supported by rebounding levels of motor vehicle manufacturing, a segment that makes up roughly one-quarter of all fastener demand. Growth in demand for standard fasteners is forecast to outpace that for aerospace-grade products. Externally threaded standard fasteners will remain the largest single product category, posting the fastest gains, along with application-specific products. Demand for aerospace-grade fasteners will improve from the growth registered during the 2007-2012 period, as aerospace equipment shipments accelerate.
