A Promising Future for High Value-added Fasteners

Taiwan is the 3rd largest fastener supply country in the world. It is estimated that by 2023 the production value of the global fastener industry will increase by 60% to USD 120 billion. Major Taiwanese fastener companies such as Chun Yu, Tycoons, and Boltun all demonstrate a very promising future. Market analysts said that the emerging Chinese fastener industry, though has taken many orders for low-price fasteners, Taiwanese publicly traded fastener companies still remain highly competitive in offering high value-added products.

Influenced by the global weak economy, orders for fasteners in the most recent months seem to have reduced a lot. Europe is especially the market with more uncertainties, however, the U.S. is relatively stable. As a result, in the long run, there are still many niche markets to be discovered for the global fastener industry. A director from a publicly traded steel plant said, “UPIVEB once said in a conference that the production value of the global fastener industry will reach USD 120 billion by 2023. Compared to the USD 75 billion production value in the recent year, the growth rate whitin the future 8 years will be over 60%.

A market analyst said that the top 4 countries with the largest fastener production values are Germany, China, Taiwan, and the U.S. in sequence. According to the thesis that the strong will be stronger, Taiwanese fastener industry can definitely earn its own market share in the fast-growing trend. The market analyst added that the future global car production will continue to increase and it is estimated that by 2023 the global car production will be about 0.107 billion units and China will become an important market (the market share may reach over 30%). This will be of course good news to those fastener companies (such as Boltun and Sumeeko) which are specialized in manufacturing automotive fasteners.

A market analyst said that the role of fastener manufacturers will become more important in the future. As major fastener suppliers like Chun Yu and Tycoons all have strong technical base for R&D, plus their decades of involvement in the global sales network, they can thus provide excellent service to customers and use well-established logistics systems to shorten the lead times, which can help them gain certain niches in the phase of industrial growth.