Fasteners Procurement Intelligence: Key Factors to Consider

The fasteners category is anticipated to grow at a CAGR of 4.42% from 2023 to 2030. APAC holds the largest category share of over 40% and it is expected to be the fastest growing region during the forecast period. The increased use in the construction and automotive industries is driving considerable growth in the fasteners category. These fasteners are semi-permeant or occasionally permeant solutions, and the development of the construction industry, research and development initiatives, urban real estate infrastructure, and technological developments in the production of lightweight goods for the automotive and other industrial sectors are all factors that have an impact on their growth. The creation of innovative and novel industrial fasteners also helps the category growth.

In the building sector, they are employed to temporarily link two or more things together. As the industry demands strength and accuracy, building and construction fasteners are employed in heavy-duty applications to link materials together. Different fastening forms are employed in the construction industry, including stainless steel, alloy steel, and carbon steel. Nuts, bolts, washers, screws, and rivets are typical examples of building construction items. To ensure secure and sturdy construction, each infrastructure project needs a different kind of fastening product. Due to its affordability, strength, and workability, carbon steel is used to make the majority of products. The demand for industrial fasteners is increased by the fact that stainless steel is the most popular building material because of its strength, resistance to heat, and resistance to corrosion.

Corrosion resistance qualities will spur significant investment in the creation of new products, meeting consumer demand. During the projection period, rising consumer emphasis on residential and commercial building aesthetics will fuel industry expansion in the use of cable management and building exteriors. However, the negative aspect of working with fasteners is that they typically require special tools for setting up, which can increase project costs and complexity. Other types require extra steps like pre-drilling holes or applying thread-locking compounds, which adds extra labor and time to installation. Not to mention, depending on the application, some types may not be strong enough or sufficiently resilient for prolonged use, which could lead to expensive repairs in the future if not handled effectively from the start. It has been noted that these costs limit the category growth.

Order your copy of the Fasteners Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The fasteners category is fragmented and highly competitive in nature, with various large and small-scale manufacturers in China, Taiwan, Thailand, and Japan. Opportunities for new companies should arise from the rising need for inventive and application-specific industrial fastener designs. Over the projection period, rising raw material costs and high-volume manufacturing by the established companies are anticipated to be the main obstacles for new entrants. Furthermore, major fastener producers are likely to have an edge over small-scale competitors due to technological expertise and a strong customer base. For instance:

• In July 2023, next-generation FLEXTORQ® Impact Driver Bits were introduced by DEWALT, a division of Stanley Black & Decker Inc. These are created with fasteners and engineered for durability, advancing and improving driver bit technology for fastening applications.

• In January 2023, Birmingham Fasteners and Supply Inc. purchased Pacific Coast Bolt Corp. to diversify its manufacturing. The goal was to boost its presence in the commercial fastener market and provide customer service to clients across the United States.

• In September 2021, LINC Systems, LLC, a commercial fastener and packaging distributor platform, announced the acquisition of Air-O Fasteners. The deal was to expand the company's foothold in the Western United States.

Raw material, labor, machinery & equipment, and energy form the major cost components of this category. Raw material is the largest cost component accounting for around 60% - 70% of the total cost followed by labor at roughly 20%. The war between Russia and Ukraine has affected the supply of raw materials (copper, aluminum, etc.), as Russia produces roughly 4% of the world's copper and about 6% of its aluminum. The fasteners category is an example of an industry where suppliers implement cost-plus pricing model. This is because fasteners are typically low-cost, commodity products with little differentiation between brands. As a result, companies in this industry often compete on price, and cost-plus pricing is a simple and easy way to set prices that are competitive.

China, and India are among the most of the preferred sourcing destinations in this category.China has a robust manufacturing industry and offers a wide range of suppliers with diverse capabilities and cost-effective production options. India is a popular destination for metalworking processes due to its established manufacturing sector. For sourcing fasteners, research the market to understand the types, quality, and prices available. Develop a sourcing strategy by identifying the needs, budget, and potential suppliers. Build relationships with suppliers to get the best prices and quality fasteners. Negotiate prices, especially if buying in bulk. Document all the terms & conditions to avoid discrepancies. Monitor suppliers to ensure they meet the agreed quality standards. Use a variety of sources for the best prices and quality.

Fasteners Procurement Intelligence Report Scope

• Fasteners Category Growth Rate: CAGR of 4.42% from 2023 to 2030

• Pricing growth Outlook: 3% - 5% (annual)

• Pricing Models: Cost-plus pricing model, fixed-fee pricing model, discount pricing model

• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence

• Supplier selection criteria: Quality assurance, service level agreement, environmental compliance, lead times, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Browse through Grand View Research’s collection of procurement intelligence studies:

• Flooring Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Fixed Line Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Key companies profiled

• Arconic Fastening Systems and Rings

• Acument Global Technologies Inc.

• ATF Inc.

• Dokka Fasteners AS

• LISI Group

• Nippon Industrial Fasteners Company

• Hilti Corporation

• MW Industries Inc.

• Birmingham Fasteners and Supply Inc.

• SESCO Industries Inc.

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

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