003 China Fastener World no.61/2021
004 China Fastener World no.61/2021
005 China Fastener World no.61/2021
006 China Fastener World no.61/2021
008 China Fastener World no.61/2021
010 China Fastener World no.61/2021
China Fastener World no.61/2021
011
012 China Fastener World no.61/2021
China Fastener World no.61/2021
013
015 China Fastener World no.61/2021
016 China Fastener World no.61/2021
China Fastener World no.61/2021
017
018 China Fastener World no.61/2021
Cover Story
Hisener Industrial Co., Ltd. New Plant to be Completed in August by Dean Tseng, Fastener World
/
Elevated Capacity in 2021
Hisener mainly provides screws. In the last two years it exported a total of 87 thousand tons of screws, up 17%. Now it has become one of the biggest fastener suppliers in the world, offering clients over 4 thousand types of fasteners sold to Europe (35%), Russia (25%), the U.S.(20%) and South America (15%). It also works with overseas distributors and provides clients with prompt service and premium products, including Timber Screws which sell well in the European DIY market.
It has its own screw factory, packaging line for DIY products and a warehouse. The company can pack 50 containers of products per month. It uses heading machines, thread rolling machines, thread cutting machines, drill forming machines and other equipment purchased from Taiwan. It has dimension measuring instruments, metallurgy analyzers, mechanical testers and surface analyzers in its laboratory for quality inspection to control product quality. In our interview with General Manager Simon Liang, he brought good news that a new plant broke ground last September and is expected to be completed this August. The new plant will be 26,000 square meters and raise screw capacity to 1,500 tons per month, lifting Hisener to a higher market position.
/
Over a Hundred Select Partnering Firms Strict Quality Control
/
The company has 150 partnering firms carefully chosen to help speed up delivery and send products to buyers faster. It offers inventory specifically for Chinese clients so that they can get their cargoes quicker when their demand is urgent.
/
China Fastener World no.61/2021
All the production process is certified to ISO9001 and re-audited and adjusted every year to strictly monitor and control each production process via a digitalized ERP system. It is also certified to CE EN14592 on structural fasteners and CE EN 14566 on mechanical fasteners, and therefore its products are popular among European clients.
Going for Smart Factory Improved Price Competitiveness
/
Simon wants to build his company into a futuristic smart factory. Ever since he adopted an automatic inventory system, the company has successfully integrated the whole production process, which greatly reduces logistics costs and improves operating efficiency of the plant to make products more competitive. “We will continue to go further down the fastener industry and invest more in R&D, production, and DIY product packaging. We always put our clients first and continuously offer them better service to add up their values.” Contact: General Manager Simon Liang
E-mail: simon@hisener.com
019
020 China Fastener World no.61/2021
China Fastener World no.61/2021
021
022 China Fastener World no.61/2021
China Fastener World no.61/2021
023
024 China Fastener World no.61/2021
China Fastener World no.61/2021
025
026 China Fastener World no.61/2021
China Fastener World no.61/2021
027
China Fastener World no.61/2021
029
030 China Fastener World no.61/2021
032 China Fastener World no.61/2021
China Fastener World no.61/2021
033
034 China Fastener World no.61/2021
036 China Fastener World no.61/2021
China Fastener World no.61/2021
037
China Fastener World no.61/2021
039
by Gang Hao Chang, Vice Editor-in-Chief of Fastener World
Development & Manufacture of High Quality Cold Forging Dies
Company Focus
Wujin Luoyang Yaoshengda Hardware Products Factory (“Yaoshengda”) is specialized in the manufacture of cold forging dies/bolt dies/nut dies and non-standard cold forged fastener dies made from various materials, as well as design, development and manufacture of tungsten carbide dies and special dies. Over the past 20 years the stable and durable cold forging dies continue to create for Yaoshengda an impeccable high-quality image on the international market, help it gain lots of loyal customers, and increase its market share around the globe. “Creating value for customers, industries, and employees as well as keeping high quality and improving service for sustainable growth have been our core mission statement since our inception”, says Yaoshengda General Manager ZHAO Shou-Ze.
Introduction of Imported Materials and Being Certified to ISO9001:2015 Making no compromise over quality, the team of Yaoshengda ma i n ly a dopt s t u ngst en ca r bide wit h h ig h ha rd ness to manufacture products. They also introduce special steel materials from Germany that best suit various customers’ demands in production. Meanwhile, in order to achieve a highly advanced level of automation, controllability, and precision, many years ago Yaoshengda started to introduce sets of advanced imported equipment and nowadays it has had more than 100 sets of equipment such as Okuma CNC Lathes, Japanese Makino Sinker EDM EDGE3, Japanese Sodick Wire EDM, Taiwan Jagura Grinding Machine, and many other highly precision equipment. The originally separately operating factories have been recently integrated as well. The resultant high manufacturing efficiency enables it to provide customers with higher quality service. With relentless dedication to quality improvement, Yaoshangda has been also certified to the ISO9001:2015 quality management system.
Dies with 3 to 5 Times of Service Life / Extending Business Reach to Development of Cold Forged Parts
China Fastener World no.61/2021
Yaoshengda has been a well-known senior expert in the development and manufacture of cold forging dies. Compared to other counterparts, the service life of dies Yaoshengda supplies is averagely 3 to 5 times that of other similar dies, which can not only help customers reduce manufacturing costs, but also help them achieve stable product quality and lower management costs. With more than 2 decades of experience in dies development, it has also recently extended to manufacture and development of cold forged parts. Yaoshengda has also purchased cold forging equipment to help customers develop cold forged parts, nonstandard parts, stainless steel rivet nuts, weld nuts, automotive wheel hub nuts, wheel nuts, various stainless steel nuts and many other engine fasteners. It has also maintained collaboration with many automotive related plants and has earned a good reputation in Europe, USA, and the Middle East.
ADVANCE QUALITY SERVICE • CO-WIN Yaoshengda Contact: Mr. ZHAO Shou-Ze (General Manager)
041
Year in Review Fastener World Magazines Jan. Issue • Cover Story: Inside SACMA - The Smartly Integrated Plant • Rising Star Chris Chen Guides Pro Power to Continuous Success • Fong Prean Industrial’s New “Magic Spiral” Head Design • Patented FMWT Automatic Sludge Discharging & Recycling Separator
Mar. Issue • Editorial: COVID Side Effects Continue to Distress the Whole World • COVID Impact on the Fastener Industry of Taiwan • Fastener Trade Statistics: USA/Canada/Japan/Taiwan (2017-2019) • Value for Money in Fasteners - Mass Market vs Specials
Fastener World Publications
• Cover Story: Yuh Chyang Hardware Industrial, Master of Critical CNC Machining Technology
May Issue • Up Against COVID-19, Taiwan Fasteners Can Help! • Besieged Between Trade War & COVID, Global Automakers in 2020 • EU/China Fastener Trade Statistics • Dr. Fastener- Electric Vehicle • Award-winning Automotive Fasteners by JINGFONG INDUSTRY
Year in Review
Jul. Issue • USMCA, Good or Bad News for Automotive Fastener Suppliers? • Revenue Performance of Top Taiwan Fastener Companies in 2019 • Taiwan Fastener Industry Before and After COVID-19 • Japanese Fastener Tech Trend: High-End, Migration & Industry 4.0 • Hsin Chang Hardware Industrial’s New Plant with Higher Lightweight Anchor Capacity
Sep. Issue • Taiwanese Fastener Business Successors’ Strategy Development • Fastener Industry’s Reflections on VW’s Dieselgate Scandal • The Impact of COVID-19 on Taiwan Hand Tool Industry • Financial Report Analysis on Taiwan's Public Fastener Companies • Courageous Taiwanese Fastener Corporate Manager - Super Cheng Industrial President Joe Cheng
Nov. Issue (Buyers’ Guide) • Interview with Global Fastener Association Presidents • Fastener Industry: Inspecting the Foundations Following COVID-19 • Vietnam’s Fastener Industry Development and Impact of EU-Vietnam Free Trade Agreement • Analysis of Car Production & Sales in Indonesia in 2020 • Cover Story: Sheng Long, Trailblazer in Special Punch Development
Fastener World Europe Special Edition 2019 Issue • Taiwanese Exhibitors at Fastener Fair Stuttgart 2019 • Atlas Distribution Services - Tailoring Fulfillment & Supply Chain Solutions to Maximize Your Import Experience
043
China Fastener World no.61/2021
2020
Year in Review China Fastener World Magazine Feb. Issue • Grand Metal Manufactory Rolls Out Clinching/Welding Fasteners • Analysis of U.S. Fastener Trade with China in 2019 • Quick Glance at EU’s Fastener Import and Export with China • How E-commerce Platforms Shape Fastener Marketing in China • Cover Story: Hisener, One of the World’s Largest Fastener Suppliers
Jun. Issue • South Africa's Fastener Safeguard Measure Investigation over Germany, USA, and China • On Construction Fastener Market • China's Fastener Trade Value Analysis • China’s Car Production and Sales (2019 to Feb. 2020) • High Valued-added Fasteners for Medical Applications
Oct. Issue • Smart Fastener Manufacturing • EU Car Production/Sales Amid COVID-19 • San Yung Electric Heat Machine’s Aluminum Alloy Treatment Furnace • Jingle-Tech Fasteners: One-stop Fastener Manufacturer & Trader • Jiaxing Goodway Relocating to a New Office
Hardware & Fastener Components Feb. Issue • Annual Financial Reports of Hand Tool & Tooling Companies • 2019 EU Fastening Tools Import and Export Statistics • U.S. Fastening Tools Trade with the World in 2019 • Reddot Design & Taiwan Excellence Awards Winners • Ing-Hwei Implements Mfg. Releases Extra Long Double Flexible Wrench
Aug. Issue • The Impact of COVID-19 on Taiwan Hand Tool Industry • Fastening Hand Tools Trade Statistics (2017-2019) • Market and Trade Analysis of Indian Hand Tools Industry • Exploring Hand Tool Market: Lithuania, Estonia, and Latvia
China Fastener World no.61/2021
• New Atoli Machinery Office Serves Direct Clients with Riveting Machines
Emerging Fastener Markets Aug. Issue • Cover Story: Fastener Cornerstone Firm & Steady Through Market Storm - Linkwell Industry • Rise of Integrated Fastener Service Provider - Industry Building Hardware • King Yuan Dar Rolls out 3 Latest Furnace Products • Yeu Chyuan Industrial: New A200-600 Series DIY Glue Gun with Dual Color Handle Design
044
For more articles, please visit our digital magazine archives at www.fastenerworld.com
Industry Focus
The Influence of RCEP on ASEAN’s Fastener Export
by Sharareh Shahidi Hamedani
chain in the Asia-Pacific region. Thailand has an industrialized position in this region which can help its manufacturers get cheaper raw materials from the innovative network. The value of its fastener trade is 1585.1 million USD (1039.3 million USD is generated from its imported fasteners and 545.8 million USD is generated from its exported fasteners). The fastener trade balance (exported value vs. imported value) is -493.4 million USD.
How Could ASEAN Fastener Producers Improve with RCEP?
My prediction is: if Thai fastener producers can focus on innovative concepts in fasteners, then the main benefit of RCEP can help create a position for Thailand to become a new professional fastener country in the region, which will improve the average price of its exported fasteners.
Singapore Singapore is a hub of trading in the ASEAN region. It is marked as one of the biggest ports in the world. Based on this position, RCEP may not generate short-term advantages for Singaporean fastener industry, but in the long-term, it may become one of the most important fastener ports in the world. The value of Singapore’s fastener trade is 726.6 million USD (409.8 million USD is generated from its imported fasteners and 316.8 million USD is generated from its exported fasteners. The fastener trade balance (exported value vs. imported value) is -93.0 million USD. My prediction is: the fastener trade balance in this country will be close to 0 in the long term.
Thailand Different manufacturing sectors show various degrees of fastener consumption, which is particularly high in some sectors like “automobile” in this country. The fastener industry of Thailand may benefit from RCEP through improving its supply
Malaysia The majority of Malaysia’s foreign trade is with its RCEP members, so this agreement will definitely help Malaysian fastener producers and consumers establish a closer relationship with their partners. They are also able to provide higher quality of raw materials at fair prices. The value of its fastener trade is 693.2 million USD (395.0 million USD is generated from its imported fasteners and 298.2 million USD is generated from its exported fasteners). The fastener trade balance (exported value vs. imported value) is -96.8 million USD.
Indonesia Indonesia as the largest economy in the ASEAN region can absorb more FDI in the fastener sector.
045
China Fastener World no.61/2021
T
he Regional Comprehensive Economic Partnership (RCEP) has been formally signed in 2020 by the 10 ASEAN countries, China, Japan, South Korea, New Zealand and Australia. This agreement has been signed in a region with 3.4 billion people, which represent 40% of the world’s population. The GDP of these 15 countries is 38.8 trillion USD, which is 30% of the world’s total. This agreement can bring a huge opportunity for the members. An easier market access and less trade obstacles are some of the opportunities this agreement is expected to give to their members. In the fastener industry, technical cooperation with pioneers like Japan and South Korea will help ASEAN fastener producers develop their production lines. Regarding the international trade, ASEAN manufacturers can count on collaboration with China.
Industry Focus The value of its fastener trade is 615.6 million USD (538.4 million USD is generated from its imported fasteners and 77.2 million USD is generated from its exported fasteners). The fastener trade balance (exported value vs. imported value) is -461.2 million USD. Its export is 7 times less than its import; and therefore, it is highly recommended that Indonesian fastener producers should focus on the exported fastener sector, otherwise the engine of growth in this sector may stop.
Vietnam Vietnam is the 2nd largest fastener trader in the ASEAN region (Thailand is the first). The value of its fastener trade is 1030.7 million USD (575.7 million USD is generated from its imported fasteners and 455.0 million USD is generated from its exported fasteners. The fastener trade balance (exported valueimported value) is -120.7 million USD.
trade balance. The value of its fastener trade is 309.4 million USD (144.5 million USD is generated from its imported fasteners and 164.9 million USD is generated from its exported fasteners. The fastener trade balance (exported value vs. imported value) is +20.5 million USD.
ASEAN Overlook and Last Word ASEAN is a region with 5% share in the whole exported fasteners and 7.5% share in the whole imported fasteners in the world. The combined fastener trade numbers are shown as below. The value of the combined fastener trade is 5061.6 million USD (3203.2 million USD is generated from imported fasteners and 1858.4 million USD is generated from exported fasteners. The fastener trade balance (exported value vs. imported value) is -1344.8 million USD.
China Fastener World no.61/2021
RCEP may be able to help this region to improve its export value because the only way to make a wealthy country is to make money from going global. This agreement is a RCEP may give Vietnamese enterprises the chance to boost their new opportunity for fastener producers to have a “market exports, engage in new value chains, and attract further foreign without borders.” The name itself suggests the answer to investment. The cutting of import tariffs would also open up new the problem. No fastener manufacturer can get wealthy if opportunities for products from the fastener sector, all of which are it stays within its own borders. It can only get wealthy if it continually growing with rising export turnovers. ignores its own borders and markets brands to the rest of the world. RCEP covers 30% of the world’s total capacity; Philippines and therefore, it can be a good practice for ASEAN The trade scale of Philippines in the fastener industry is not huge, fastener manufacturers to proceed to their next steps, however, it is the only country in the ASEAN region with a positive fastener which is “Go global!”
046
Advanced Certification Approved Company
The IATF 16949 Certified
Changzhou Ruibo Hardware
Extends to the Automotive Sector by Gang Hao Chang, Vice Editor-in-Chief of Fastener World
C
hangzhou Ruibo Hardware Technology Co., Ltd. has acquired the IATF 16949 certification since the end of 2019. After being officially certified to ISO 9001:2015, Ruibo Hardware continues to improve its product quality and process management and has been recognized industry-wide.
eing a supplier specialized in offering products to SMEs from railway, automotive, military, textile, electric, machinery, aerospace, mining equipment, and high-voltage appliances industries, Ruibo Hardware mainly serves customers from China, Europe, USA, Japan, India, and Southeast Asia, and is dedicated to developing and producing various collars, stainless steel castings, cold forged parts, stamping, welded parts, CNC machined parts and non-standard or customized parts. Among these products, the CNC machined parts and stainless steel castings are developed particularly for car frames, seats, and motors, and have been adopted by some European and U.S. car manufacturers such as GM and Ford, and indirectly supplied to the fast-growing electric vehicle market. Ruibo Hardware also has another Grade 8.8 high-strength lockbolt and collar especially developed for the heavy industry, which features high stability and tight fastening capability. This product was once called by its customers as “a fastener that never comes loose.”
The Grade 8.8 High Strength Lockbolt and Collar- High Vibration, Shear, and Tension Resistance
W
ith a wide knowledge of products, the team of Ruibo Hardware demonstrates unignorable R&D capabilities. Its previously developed Grade 8.8 high strength lockbolt and collar has been widely used in applications where the use of high-strength fastening products is required, such as railway, vehicles, mining equipment, construction steel structures, bridges, etc. This product is mainly used to connect car frames, which can not only eliminate stress, but also ensure tight fastening. In practical applications, its capabilities to quickly achieve effective and safe assembly , including excellent vibration, shear, and tension resistance, have been also testified by many users worldwide.
Strict PPAP3 Standards Compliant Inspection and Well-equipped Production Lines
P
roduct quality, customer satisfaction, and honesty of a business have been the guidelines strictly abided by Ruibo Hardware for many years. In order to achieve perfect product quality and ensure the strict compliance of every product shipped from the factory with international standards and customers’ requirements, Ruibo Hardware continues to introduce into its factory the most stateof-the-art multistage cold formers, threading machines, general lathes, computerized lathes, processing centers, grinders, mills, wire cutters, automated welding machines and many other medium/large-size CNC processing centers, designate senior technical and executive staff to monitor each manufacturing process, and keep good quality control via its professional in-plant testing center. Its seamless integration and solid management starting from material feeding to final shipments both enable it to construct stable and long-term partnership and collaboration with many businesses around the world.
S
pring Liu, general manager of Ruibo Hardware, said, “Since the establishment of Ruibo Hardware, we continue to bring our A game to meet customers’ quality standards, optimize our manufacturing technique, and offer customers high quality service. With the principles of quality & service first, reliable lead time, and aftersales service, we hope to fully satisfy customers’ requirements, which is the reason that over the past 11 years our collaboration with U.S. railway customers maintained the record of almost no customer complaint. Looking forward, we’ll keep improving our core competence and seek to provide more superior and efficient shipments. We also hope to delve more into the field of new energy vehicles and the R&D of stainless steel castings. In the new year of 2021, we’ll maintain continuous collaboration with global customers and grow with them with our development of high value-added products.”
Ruibo Hardware contact: Nancy Email: sales@ruibotechnology.com
047
China Fastener World no.61/2021
B
Industry Focus
The Influence of EU’s Fastener AD Dumping Investigation on China
by Behrooz Lotfian
European Industrial Fasteners Institute (EIFI), an association representing producers of bolts, screws, nuts, rivets and other mechanical industrial fasteners has complained that the imports of iron and steel fasteners from China have increased overall in absolute terms and in terms of market share. What are they looking for? The imposition of additional import duties on the products under investigation imported from the PRC, with a consequent increase of their prices.
The Battle of Fasteners The problem is simple. Chinese fastener producers pose threats to the market of Europe by their low-price strategy which we usually call a “flanking attack” in marketing. European manufacturers have lost their competitive advantages and lost their markets. However, in marketing, we believe that a higher price is not necessarily negative and there are many opportunities for high-price.
What is High Price? There are two good reasons why high price represents more of a marketing opportunity than low price. One is the tendency of the prospect to equate quality with price. "You get what you pay for." The other is the potential for higher profit margins with a higher price. The higher margins allow you to finance the critical "pursuit" stage of a flanking attack.
China Fastener World no.61/2021
Once the EU claims dumping, it means that their high prices are not appropriate with their quality cost and/or Chinese fastener quality is close to the European fastener quality.
When the story reaches to this point, if a manufacturer cannot make any difference for its product, then the price sensitivity becomes the main concern of buyers. This is exactly what happened to European fastener producers. They can’t sell their products because they don’t make any difference from cheaper Chinese fasteners. The most obvious form of flanking is low-price. The advantage of this approach is that the market is there. After all, everyone presumably wants to save money. Yet it's tough to make money by cutting prices.
How Can China Sell Their Products with Low Prices? In terms of exports, the numbers show that 35% of exported fasteners in the world are originated from the EU, while 16% of exported fasteners in the world are originated from China. EU’s export value is 2.17 times higher than China’s. In terms of imports, the numbers show that 29% of imported fasteners in the world are sold to the EU, while 7% of exported fasteners in the world are sold to China. EU’s import value is 4.43 times higher than China’s. (See the following table)
Fastener manufacturers believe that, in their business nothing matters except for the product.” That’s a typical fastener producers’ management thinking. This sounds logical and how could anyone disagree?
Unit: 1,000 USD
Export in 2019
Percentage
Import in 2019
Percentage
WORLD
39,988,430
100%
42,714,411
100%
EU
14,004,028
35%
12,583,424
29%
However, when you look at the situation from a fastener buyer’s point of view, the “better-product” logic falls apart. One could study through the catalogues of different fastener producers and compare similar fastener specifications, and/or provide samples to test them on their production lines. Even a fastener expert would be hard pressed to find any significant quality differences.
CHINA
6,443,172
16%
2,838,988
7%
048
The reason that China can sell at cheaper prices is in their exportto-import ratio. The EU’s export-to-import ratio is 111%, but China’s export-to-import ratio is 227%. China is more independent from imported fasteners in comparison with the EU.
Industry Focus Other numbers reveal that: •
•
28% of China’s exported fasteners are distributed to the EU region, while 34% of China imported fasteners are originated from the EU. 7% of EU’s exported fasteners are distributed to China, while 14% of EU’s imported fasteners are originated from China.
Year: 2019 Unit: 1,000 USD China
The EU EXP.
EXP. IMP.
IMP. 1,776,368
977,731
The EU Defends Against China’s Attack? Business is a war between companies and countries or regions. Marketing law shows that strong competitive moves should always be blocked. The EU wants to block Chinese attack by antidumping measures. This can be only a short-term approach because China can do the same to EU’s fasteners; and therefore, 7% of their market may be put into a difficult situation. For a long-term blocking, the EU needs to change its approach. EU’s consumers do not want to buy expensive fasteners, so they prefer Chinese producers. EU’s consumers’ behaviors have caused Chinese fastener sales to reach a positive growth in the EU. The EU’s longterm action should be to change their behaviors. But how? Al Ries, the guru of marketing and strategy, said, “The single and most wasteful thing you can do in marketing is to try to change a mind. Therefore, if EU’s fastener producers want to look for a better situation, they should forget the current “fastener” categor y, a nd t hey must ma ke a new category with their own brand. They have to scarify something in order to establish their unique position. The focus of most marketing operations is just the opposite. T hey look for ways to broaden t hei r markets by line extension, size, application proliferation, and multiple distribution. All these things should be scarified. In positioning, the smaller may be the better. It is usually better to look for smaller targets that you can own exclusively rather than a bigger market you have to share with three or four other brands. You can’t do all things and still have a powerful position.
China’s Approach
China Fastener World no.61/2021
Focusing on prices is often the enemy of differentiation. When the price becomes a focus of a message or a compa ny’s marketing strategy, consumers begin to undermine your uniqueness. If China keeps prices the main consideration for making consumers pick their fasteners over their European fastener competitors, in the long term and if the EU chooses the positioning strategy, they set themselves up to lose. However, Chinese companies in other industries are leaving the concept of low prices; and therefore, it is predictable that the same trend may happen in the fastener industry, too.
049
050 China Fastener World no.61/2021
054 China Fastener World no.61/2021
China Fastener World no.61/2021
055
Industry Focus The World’s Factory China rose to the "World's Factory" within the last 40 years. This growth initiated when Deng Xiaoping, former president of China, ordered an economic reform in the late 1970s and presented the concept of a free market to China for the first time, which earned him the reputation as the "Architect of Modern China". A combination of relaxed state regulations and access to the world's largest, youngest, workforce in the world made China the impeccable place to outsource global manufacturing. Low labour cost, strong business ecosystem, lack of regulatory compliance, low taxes and duties, and easy access to fast growing consumer populations in Southeast Asia made China one of the most beneficial and productive business hubs in the world. It quickly surpassed the United States in 2011 to become the world's largest manufacturer driving growth in the nation's GDP by 40% and accounted for almost 30 percent of the global manufacturing output in 2018. Despite the fact that Chinese manufacturing has dominated over the rest of the world over the last twenty years, manufacturing is leaving China, and the mature point in China's exponential growth curve headed to a few unexpected circumstances. The cost of finished goods and pace of production and delivery, at which China was able to deliver, has started to slow down as the country's population grew and its presence on a global stage drew attention around environmental and wage regulations. More importantly, specialization has caused labour rates up in recent years.
Next World’s Factory?
What is the Future for Indian Fastener Industry?
China Fastener World no.61/2021
In addition to what was mentioned, Chinese manufacturing and its economic productivity got hit by what can only be described as "A Perfect Storm" of incidents, in the last few years. A combination of old issues and new challenges such as China - United States trade war and increased geopolitical tensions as well as recent Covid-19 Pandemic which all lead to a mass departure from Chinese manufacturing, and initiated the start of the downfall of the country's manufacturing dominance. Analysis reports that Chinese global export has been estimated to drop by USD5 billion since the tariffs were first implemented.
Next World’s Factory Manufacturing has emerged as one of the high growth sectors in India. India is projected to be the world's third-largest automotive market in terms of volume by 2026. Based on the recent study by the McKinsey Global Institute, it is expected that companies will shift one quarter of their global product sourcing from China to other countries in the next five years. In this uncertain trade environment, a growing number of countries are hopeful that they could replace China as the
056
by Shervin Shahidi Hamedani
world’s next major manufacturing hub. Now the question is, which country will be the next world’s factory? Vietnam, Thailand, Malaysia, Indonesia, Singapore, India, Taiwan, South Korea, Mexico or maybe a country from Africa? Vietnam, for instance, has been one of the major beneficiaries of the US-China trade war, attracting much of the manufacturing capacity that China lost, but this is not the only factor to become the World’s Factory. To answer this question, first we need to know the key objectives for companies who are willing to expand their new manufacturing bases. New market opportunities, proximity to existing accounts, talent availability, educational infrastructure, business disruption risk and state technology advances are the main objectives which brand owners look for when planning to expand and optimize their factories. As a result, given the proximity to an inflating population base and relatively lower wage rates, India and Southeast Asia still remain lucrative opportunities for those brands looking to outsource manufacturing.
India Can Replace China as World's Factory India, China’s neighbour, a global giant with a fast expanding consumer base and strong manufacturing know-how background, is making a serious effort to (re)gain the world exporter hub. China's weakened global position is a great opportunity for India to attract more investment, as this country already has massive auto, food, and apparel manufacturing bases. Pharmaceutical companies are also turning towards Indian manufacturers for a more reliable production base.
Industry Focus Recently, India has significantly increased efforts to attract manufacturing investments into the country. The new initiative of Prime Minister, Narendra Modi, “Made in India” is intended to help the country replace China as a global manufacturing hub. The base of this plan comprises inspiring the world’s biggest smartphone brands to make their products in India. The northern state of Uttar Pradesh, with the population as large as Brazil, has formed an economic task force to invite manufacturers who are keen to leave China supported by a pool of land twice the size of Luxembourg. Despite of all those opportunities and initiatives, India is still blamed because of its severe regulatory environment and restrictions.
Due to various applications of fasteners in diverse sectors, a wide range of fasteners are manufactured in the Indian market, which include exhaust bolts, balance wheel bolts, standard hexagon screws/bolts, socket head cap screws, socket shoulder screws, weld nuts, square nuts, hexagon nuts, self-tapping screws and others. Again, with the support of Narendra Modi’s ‘Make in India’ initiative, the Indian manufacturing sector is expected to generate a huge demand for the industrial fasteners market in the new future. The Indian industrial fasteners market is expected to reach a value of 6.3 billion USD by 2023.
Indian Fastener
High-tensile fasteners are mainly used in the construction and engineering sectors, whereas mild steel fasteners are used in manufacturing automobiles. Currently, there has been a shift in preference of manufacturing fasteners by using stainless steel, iron, brass, aluminium, nickel, plastics and composites while this shift is expected to continue in the future. Sources: The Exodus of Chinese Manufacturing: Shutting Down 'The World's Factory', by Forbes Top 5 Countries Poised to Become the World ´s Next Manufacturing Hub, by World Finance Coronavirus: Can India replace China as world's factory? by BBC Fastener Market in India, by Fastener Eurasia
China Fastener World no.61/2021
Asia-Pacific has been known as the largest industrial fastener market for several years, accounting for a major sha re of the fasteners manufactured globally. The main reason for this growth, more specifically, in India, derived from the several construction initiatives and activities as well as growing automobile manufacturing.
The Indian automotive sector is expected to be the largest consumer of industrial fasteners, accounting for a major share of the market by 2023. This will be owing to increased automotive manufacturing in the country. Increasing sales of automobiles in India are considerably driving the growth of the automotive aftermarket in the country, including automobile sectorspecific fasteners. In the future, the development of fasteners applications for manufacturing automotive parts such as engines, chassis, moulding, suspension systems and wheels among others, is anticipated to drive the growth of the Indian industrial fasteners market followed by the construction and the engineering sectors.
057
Indian News
Indian News Compiled by Fastener World
+ Steel Wire Units May Close Owing to Raw Material Paucity According to a senior industry body official, steel wire makers, belonging to the labor-intensive small and medium enterprises (SME) sector, are facing an acute shortage of raw materials. This may lead to the closure of several units. He added that about 100 units in the organized sector that offer employment of about 500 thousand workers in the country are already operating below 50 percent of their rated capacity, and if the situation continues, several of them will have to close down. The steel wire makers have appealed to the Indian government to ensure raw material supply and imports of specialized items that are not produced in the country. “The industry is facing an acute shortage of high-grade wire rods, the main raw material for wire production, which has varied applications in nation-building,” Tirthankar Banerjee, Secretary-General, Steel Wire Manufacturers Association told PTI. “The paucity of high-grade wire rods is 50 percent, and it is due to inadequate domestic supply and import restrictions,” he added.
China Fastener World no.61/2021
The association has urged the Union Government to ask Steel Authority of India (SAIL) to streamline its specialized wire rods plant at Burnpur and advise Rashtriya Ispat Nigam (RINL) and other private steel makers to supply enough raw materials to the SME sector at fair prices.
058
Indian News +
Punjab Industrialists and Exporters in Trouble Amidst Farmer Protests In view of the ‘Rail Roko’ agitation by farmers, the Engineering and Export sector in Punjab is facing a major crisis due to non-movement of containers from Punjab to the port and disruption in supplies of raw materials. Hence, the North Region chapter of Engineering Export Promotion Council (EEPC India) has appealed to the Punjab Government to come up with a solution to ensure movement of industrial goods and raw materials. In a recentl press conference, Kamana Raj Aggarwalla, Chairperson, EEPC India (NR), said that while the association supports the protesting farmers, the industry in Punjab was up for a major crisis due to non-movement of goods amidst its struggle to emerge out of the severe setback caused by the Covid-19 pandemic and the prolonged lockdown.
“All the industries including bicycles, fasteners, hand tools, agriculture machinery, sports goods, hosiery, and auto parts are struggling to get the raw materials. Export of existing orders is getting delayed due to non-movement and unavailability of containers in Punjab. Containers are not moving from Ludhiana dry port and there is scarcity of empty containers for exporters,” she added. Tushar Jain, EEPC Panel Convenor (Agriculture Machinery), said at least 3,500 customs cleared and ready-to-dispatch containers were stuck in Ludhiana. “Road transport remains a short-term expensive solution but that does not solve the problem completely due to national permit issues and additional high costs.” Sha rad Agga r wal, Industr y Representative, said that the buyers are panicking and this situation is fetching a bad repute to the Punjab exporters. “This can have long-term consequences due to loss of trust of buyers,” he said, adding that the payments of the exporters of Punjab are also stuck as buyers are not releasing the payments without having received the products.
China Fastener World no.61/2021
G u n e e t R a n a , D e p u t y R e g io n a l Chair man (NR), EEPC, said Ha r yana is facing similar protests but is able to move the containers at night. The Punjab Government, he added, should come up with a similar solution with the protestors.
News provided by: Abhijat Sanghvi (Fastener Association of India)
059
Editorial
by Dean Tseng, Fastener World
Year in Review on
Editorial
Chinese Fastener Trade and Electric Vehicle Market
1. China’s Worldwide Fastener Export up 8.5% Amid the Pandemic According to statistics from China’s General Administration of Customs, the value of fasteners exported from China to the world reached USD 6.97 billion in 2020, up 8.5% from USD 6.41 billion in 2019. China imported USD 2.78 billion worth of fasteners from the world, a minor 1.7% dip from USD 2.83 billion in 2019. The export value plunged 80.4% as a result of the lockdown in February, but in March immediately rebounded to the January level, and peaked at USD 8.16 billion in June, while the import value remained within steady fluctuation. In the third quarter, the export value went back to the January level, and grew further towards the USD 8 billion mark. In regard to China’s fastener export to the U.S., likewise the value plummeted 80% during the lockdown and sporadically went back to the January level in April, November and December, while the import value remained within steady fluctuation. Overall, despite the impact from both the pandemic and the U.S./China tension, the rebound in China’s fastener trade remains strong. Furthermore, the world’s demand for China’s fasteners increased instead (Fig. 1), and therefore the prospect for China’s fastener export in 2021 is still expectable.
China Fastener World no.61/2021
2. Decelerated Growth in Chinese Automotive Market Expected to Continue This Year The sales figures for 7 major Chinese automakers are presented in Figure 2. It is little effort to find their figures fluctuate with the development of the pandemic. Particularly in February when the pandemic in China peaked, over 80 percent drop in production and sales appeared in five out of the seven automakers. An apparent reduction in drop margin occurred in March on each of the said automakers. The figures basically went upwards starting in April. In May, most of the said automakers have restored sales to the January level and gone from negative to positive growth. Among them, FOTON’s sales in May 2020 was higher by one fold than the sales in May 2019, and Chang'an Automobile saw 50% month-on-month sales
060
Editorial growth. Between May and the yearend, the sales slightly fluctuated with the pandemic but did not impede the gradual growth trend. In December, most of the said automakers have sales higher than the January level. As long as no more massive lockdown comes up in China in the foreseeable future, the Chinese automotive market will continue its gradual restoration. However, we cannot overlook the winter and spring in 2020 when global positive tests and deaths accelerated at a record speed. The Chinese automotive market growth slowed in around 2018 (Fig. 3) and was met with the pandemic in 2020. It is a long way for China to achieve production and sales surge in 2021, but slower recovery is expectable.
3. Electric Vehicles to be on a High-speed Growth Track in China and the World Propelled by the Pandemic
The number of delivery for four electric vehicle makers in China, including NIO, Li Auto, XPeng and Leap Motor are shown in Fig.4. Even though electric vehicle sales plunged in February where the lockdown took place, in a full-year perspective, electric vehicles were hardly affected by the pandemic and went steadily upwards. NIO, Li Auto, XPeng and Leap Motor grew 5 folds in car delivery during the whole year. Leap Motor grew nearly 70% from May to the yearend. In 2018 to 2020 (Fig. 5), the said electric vehicle makers’ delivery grew by folds, and it foretells that the Chinese electric vehicle market was just about to turn hot under the pandemic.
With Tesla founder Musk rising as the richest man in the world this January, it is not a far-fetched pipe dream to envisage the next 5 to 10 years as the heyday of the electric vehicle industry. In the 5 years from 2016 to 2020 (Fig. 6), Tesla’s delivery went from 15 to 18 thousand vehicles, up 12 folds. The first surge began in the first quarter of 2018, breaching the 30 thousand mark, and through the 100 thousand mark for the first time in the fourth
061
China Fastener World no.61/2021
Chinese electric vehicle production and sales will grow at a high speed in 2021 and could breach 2 million vehicles. China produced 167 thousand vehicles (up 69.7%) and sold 160 thousand vehicles (up 104.5%) in October 2020, setting new records the fourth time. China announced the “Automotive Industry Development Plan (2021-2016)” in November 2020. The goal was to have electric vehicle sales take up 20% of new car sales and raise the core technology of electric vehicles to the international level around the world.
Editorial
quarter of 2019. The second surge occurred in the third quarter of 2020, followed by another record peak in the fourth quarter, reaching 180 thousand vehicles. In the whole year of 2020, Tesla produced 509 thousand vehicles and delivered 499 thousand vehicles, barely reaching the 500 thousand target range set by Musk. The world’s electric vehicle market share increased nearly 3 percent in the last 5 years. The sales increase from 800 thousand vehicles in 2016 to 2.28 million vehicles in 2020, up 185%. With Tesla’s plant in China, China’s supportive policy, and the emergence of multiple startup electric vehicle makers in China, the largest and most evident growth market of electric vehicles is China. The U.S and Europe is growing steadily year by year, and Japan is relatively at the start phase (Fig. 7). At the writing of this article, respective country's electric vehicle sales figures for 2020 had not come up. Despite the pandemic disruption, NIO, Li Auto, XPeng and Leap Motor still have robust sales momentum and Tesla the electric vehicle mogul’s sales grow 12 times in five years. The electric vehicle sales from 2020 onwards still look promising.
Table 1. Tesla’s Production and Sales Figures in 2016 to 2020 (Unit: Vehicles)
Delivery
2016
Manufacturing Output 83,922
2017
101,027
103,100
2018
254,530
244,900
2019
365,284
367,200
2020
509,737
499,000
Year
China Fastener World no.61/2021
4. New Target for the Fastener Industry: Electric Vehicles Out of all automotive components, the heaviest include battery set, motor, transmission, and these items are critical in electric vehicle development with the goal of reducing the weight of heavy components and extending service life through ground-breaking designs. In this way, future ideal electric vehicles will be eco-friendly, fuel-free, and more importantly no longer need to go under maintenance at an automotive body shop. Fasteners as a critical automotive component must be lighter, used in a fewer amount, priced higher, and more durable to be in line with electric vehicle development. The future electric vehicles will use the following three critical types of fasteners: • Fasteners with electrically isolating coatings. • Sheet metal fasteners. • Lightweight non-magnetic fasteners. • Thread-forming screws for plastics and metals. • Battery retention bolts. • Security fasteners.
062
75,900
Editorial
The material used for electric vehicle batteries will go from graphite to lithium, emphasizing on energy density, environmental benignity and safety.
China Fastener World no.61/2021
Furthermore, the future electric vehicles’ battery design will go from graphite-based to lithium-based, and even further upwards to surpass lithium batteries, which could affect future automotive fastener design. All traces signify that electric vehicle popularization is coming into existence as we are speaking. Fastener companies must catch up with new trends under the pandemic, and predeploy product development for the electric vehicle fastener market to make a head start as the booming of electric vehicles comes.
063
American News
American News Compiled by Fastener World
+ IFE Panelist Kerr: Robots ‘Pervasive’ by 2030
China Fastener World no.61/2021
Charlie Kerr envisions more “lights out” manufacturing in the fastener industry. As a panelist in a 2020 International Fastener Expo virtual session on fastener manufacturing, Kerr of Kerr Lakeside recalled when fastener factories began using computers in the 1970s. Remember early cell phones just a few years ago and how fast they developed? he asked. Is there more reshoring of fastener manufacturing? Responding to a question about robots in fastener “Yes for now,” Boyd responded. But that “is not guaranteed for the next round.” manufacturing, Kerr noted that while a small robot There are Covid-related products where customers are seeking the reliability of may cost $12,000 today, robots can work 24/7, don’t domestic fastener supply, Boyd observed. “Especially when they want delivery show up late for work and don’t call in sick. The within a week,” he added. first place for robots in fastener manufacturing is in the packaging department, Kerr said. By 2030 Kerr reported “an uptick in requests for quotes,” especially with certain robots will be “pervasive,” Kerr declared. material grades. But requests for quotes don’t necessarily turn into business, Kerr pointed out. Kerr said some of the searching for alternative product sourcing can Matt Boyd of Parker Fasteners envisions much move business from China to India, Vietnam or Taiwan and “not necessarily back more use of QR codes with end users having all to the U.S.” Kelly reported an increase in quotes for 2021. the information “at their fingertips.” Reflecting on the year of the Covid-19 pandemic, Boyd said “Freight costs are giving us an advantage,” Kelly said. aerospace fastener sales may have declined but health and semiconductor business is up. Military Kerr pointed out that “it is not what it costs to purchase fasteners, it is what it is steady, Boyd added. costs to own them.” Freight and quality are part of those costs. Kerr cited as an example of costs to own by recalling buying a cheap bicycle in 1986 for $100, which A mong t he products Ker r La keside has didn’t last. But a $200 bicycle in 1990 is still serving him three decades later. traditionally manufactured are fasteners for musical instruments such as trombones and trumpets. Given the pandemic, that business has dropped to “zero,” Kerr said. Larry Kelly of Buckeye Fasteners said business took a hit for April, May and the manufacturer “more time to look internally,” Boyd said. June but certain sectors such as food and beverage and medical did well. “Where can we do better in business?” Also through zoom Buckeye received urgent orders for ventilator fasteners, Kelly noted. calls he found they actually “got closer to the customer.” What Parker would have spent on exhibiting at the IFE in Las Vegas Reacting to pandemic could be spent in other ways, Boyd said. In direct contact, The effects of Covid-19 will continue “well into next year,” Kelly Boyd spent more individual time with customers rather than expects. Kelly said Buckeye’s 1905 plant is not easy to reconfigure for a being interrupted on a trade show floor. Parker sales are up pandemic. It is hard to move heavy fastener manufacturing equipment. “just slightly” for 2020, Boyd said. But Buckeye has created more cellular environment for operators. Operators often have two or more machines, giving them spacing and Kerr acknowledged he is “not a fan of remote work,” but less operator interaction. The pandemic has made IT personnel the most added that “the way work is done is going to be different.” valuable, Kelly noted. Most manufacturing can not be working from Boyd finds trucking costs increasing more than materials. home, Kelly said. Boyd said Parker has been able to hire 18 people. Parker favors hiring people without experience and having the company Parker was fortunate to be moving from a 30,000 sq ft building to train them. Kerr Lakeside relies on temporary services for 68,000 sq ft, allowing some spacing of equipment as part of following hiring, Kerr said. CDC guidelines, Boyd said. Parker also spread out shifts. And Parker added a cafe in the facilities so “no one has to leave to get food.” No Worse than finding employees is having a “plant full of vendors come to the Parker facility, he said. The pandemic has given people and no jobs to do,” Kerr said.
+ Canada Renews Tariffs on Asian Screws The Canadian International Trade Tribunal renewed duties on certain carbon steel screws from China and Taiwan “used to mechanically join two or more elements,” and the subsidizing of such products exported from China, excluding carbon steel screws specifically designed for automotive or aerospace applications, Fastener World reports. The Canada Border Services Agency (CBSA) initiated a re-investigation to update the normal values and export prices, in accordance with the Special Import Measures Act (SIMA), respecting certain carbon steel fasteners originating in or exported from China and Taiwan, and the amounts of subsidy respecting certain carbon steel fasteners originating in or exported from China. The re-investigation was part of the enforcement of the CITT’s order made on January 5, 2015, in Expiry Review No. RR-2014-001, continuing its order made on January 6, 2010, in Expiry Review No. RR-2009-001 continuing, its findings made on January 7, 2005, in Inquiry No. NQ-2004-005.
064
American News
+ Hughes to STAFDA: Underdogs Can Win Can small distributors compete against Amazon? the president of the Specialty Tools & Fasteners Distributors Association asked in his 2020 virtual State of the Industry speech. “We. Are. The. Underdog,” emphasized Greg Hughes, president of Kinnunen Sales & Rental. “Well, I’m here to tell you: Our. Dog. Bites!” The Oklahoma distributor’s mascot is a dog. “I love being the underdog,” Hughes declared. “I love the challenge of someone saying that I can’t. And in our industry the Big Boys are telling us just that. That we can’t keep up with their ability to attract and keep this next generation of buyers.” “What the pandemic did was force our brick-n-mortar customers to find ways to ‘per - fect’ their internet buying skills, Hughes said. The customer base is growing younger and “their online love affair grows stronger each day, subsequently kicking our counter-and-field-based customer service to the curb, and the big box stores have increasingly aggressive B2B programs.” “Our customers may be convinced they don’t need us anymore. Are they correct? I mean, we can’t out-Amazon, Right?” After college in Oklahoma, Hughes learned direct selling of fastening-related products to end users with a German-based company. Within two years he became an outside salesperson. “The next few years I learned the art of selling, and I started developing key relationships, one of which was with a hard-working and determined gentleman by the name of Ray Kinnunen,” Hughes recalled. Kinnunen, a concrete contractor by trade, “had grown tired of driving so far to obtain rental equipment and supplies. So with a $400,000 loan and a 4,000 sq. ft. building, he started Kinnunen Sales & Rental, offering a few pieces of rental equipment and some concrete related supplies, including the shots, pins, anchoring and drilling products my company offered.” In 2013, Hughes and his spouse bought the distributorship from Kinnunen.
“Our slogan at Kinnunen Sales & Rental is - ‘Getting You Back to Work’ - and we’ve built a business on that promise.” That required getting the customers and retaining them when they “have the option to purchase our products not only faster, but also in some cases, cheaper from Home Depot, Lowes, Amazon, and whomever pops up online overnight.” “We’ve accepted the fact that in the next five years nearly 75% of our customers - those people we depend on to stay in business - will be Millennials and Gen Z-ers. We’ve ditched the old-guy gripe about how we hate change, or how we hate how these youngsters think…and we’ve made change after change after change, to simply….keep up with change.”
Building Strong Relationships With Our Vendors Hughes said “opportunities to buy from someone else are only going to continue to multiply as we’ve seen happen at lightning speed in 2020. We’ve got to have reasons for not only our customers, but also our vendors, to hang with us.” One way the “Kinnunen underdog bites back is by building strong relationships with our vendors. Let’s all agree - our vendor partners have a responsibility to their companies, their employees and shareholders to produce results. To that end, servicing the big box stores and various online platforms due to their sheer volume is an option they are unable to pass up, but you know what? Our vendors love us and they know what we bring to the table. We’re the guys who will take the vendor to the jobsite and get their brain and heart involved in our projects. No one at the big box stores or online giants are going to do that. We’re going to make sure our vendors know our partnerships with them are a huge part of our ability to succeed. They are going to feel, see and understand how much we need them, appreciate them, and depend on them to help us take our market share back.” That’s just one way the underdog bites back.
Investment in Online and Social Media Platforms Hughes noted many distributors saw sales skyrocket in 2020 because of the surge in online buying. “And how did they get so much business? Because of their investment in online and social media platforms. Their willingness to follow the trends of younger buyers - and older buyers wanting the buy-it-on-my-phone convenience.” Now before everyone says, “Yeah, but I can’t afford a million-dollar website with apps,” hear me out, I’ve said that same thing for years. The answer doesn’t have to be that difficult or costly but doing nothing is no longer an option, just like doing nothing wasn’t an option in the formative years of your business,” Hughes advised. “We can’t keep our holier-than-thou attitudes, thinking everyone should come to us because we have a beautiful store on Main Street where the shelves are dusted, the floor is swept, and our employees greet you with a smile,” Hughes said. “We’re going to keep providing those things, but we also have to accept the new religion of apps and online buying trends of this generation, and all future generations.” “We have to reach a market who, for the most part, we don’t see,” Hughes said.
Marc Strandquist >
Optimas Solutions of Glenview, IL, USA, has opened a new distribution facility in Overland, MO, USA. Optimas, a global industrial manufacturer/distributor and service provider, opened the 30,400 ft2 facility near St. Louis to handle the USA distribution of a new line of manufacturing consumable products focusing on personal protective equipment (PPE) and maintenance, repair and operations (MRO). Optimas Solutions has also promoted President of the Americas, Marc Strandquist, to Chief Executive Officer (CEO). In his new role, Strandquist will oversee planning/execution of the company’s strategic plan for its regional business groups—Americas and International. Strandquist will continue to oversee the firm’s Americas business unit. In that role, he has ignited revenue growth, service diversification and technology advancements, which also drives improvements in sourcing, operations and customer service across the USA, Canada, Mexico and South America.
065
China Fastener World no.61/2021
+ Optimas Opens New PPE & MRO Distribution Center in St. Louis; Promotes Marc Strandquist to CEO
American News + TR Fastenings Boosts Medical Fasteners Capacity TR Fastenings has increased capacity for medical device fasteners to meet rising demand driven by the coronavirus, DPA reports. “The outbreak of COVID-19 created an unprecedented demand for medical products, a situation never before experienced on this scale,” writes Jeremy Scholefield. “In response to the outbreak, the world turned to medical companies for vital help, which has galvanized the industry into action and to work in uncharted territories.” To alleviate shortages, manufacturers outside of the healthcare field have reconfigured to develop and produce medical equipment and supplies.
+ Johnson Tells STAFDA: Ban Paper in Front Office Move your distributorship into the future by eliminating paper in the front office, Andrew Johnson advised the Specialty Tools & Fasteners Distributors Association. Johnson, CEO of Shelfaware LLC and a multiple generation distributor, spoke on transitioning distributors to the digital world where they can reclaim “the edge back to small business.” Distributors must have a programmer on the payroll to develop “automatic analytics,” Johnson said. Distributors need a “data dashboard with alerts, triggers.” “Own your data,” Johnson urged. With data driven inventory, distributors can compete directly with Fastenal, Grainger and Home Depot. The big chains already dominate search engine advertising. Distributors need to “pick and choose” their online presence, Johnson advised. But even websites may get outdated, Johnson cautioned. “It is about the eyeballs,” Johnson said. “What are they looking at? LinkedIn? Videos?” But they can compete in their niche – such as furniture fasteners. His own family’s distributorship specialized in O rings.
China Fastener World no.61/2021
To compete, a distributor can move into assembly and repair “bordering on manufacturing,” Johnson said. Small distributors can offer customizing. Not every idea will work, he acknowledged. “There are going to be swings and misses.” Part of his distributorship’s move into the future involved him and his brothers-in-law discussing what each one was good at and not good at. That must be expanded in companies. “Team members need to know what they are not good at,” Johnson emphasized. Fastenal has grown in servicing safety & janitorial businesses. Fastenal installed 100,000 vending machines in customers’ locations. Small distributors need to “stick to what you do well.” Attack competitors “where they are weakest. Use a digital approach to carve out your market niche.”
066
Critical medical products requiring fasteners and components include: 1.
Respiratory equipment, such as ventilators;
2.
Personal Protective Equipment (PPE), such as face masks and protective visors;
3.
Diagnostic tests that identify those infected.
TR Fastenings responded to the UK government’s urgent request to support established medical equipment manufacturers and new companies diversifying into this sector. With technical expertise, real time inventory availability, a wide range of fasteners and an intricate global supply chain already in place, TR has been able to accelerate time to market. “Although fasteners are typically the smallest components in medical devices, they play an important role in the assembly, functionality and structural integrity of the device,” Scholefield writes. “Work ing directly with a knowledgeable fastener manufacturer early on in the design stage mitigates the possibility of a costly redesign.” The main products TR supplies are sheet metal fasteners, high-grade stainless steel fasteners, plastic and rubber products, and specially manufactured parts for ventilators, medical beds and furniture, ultrasound machines, medical imaging equipment, defibrillators, incubators, medical computer stands, volumetric pumps and infusion devices, and vacuum extractors. Founded in 1973, UK-based TR Fastenings manufactures industrial and Cat. C fasteners at manufacturing sites.
+ Lower Fastener Sales Drive FDI Down The Fastener Distributor Index declined in August, dropping to 49.2 from 54.6 the previous month amid plummeting sales. June’s figure of 56.9 was the index’s best reading since November 2018. “After two consecutive months of fairly sharp improvements in the FDI, naturally the rate of improvement stalled some in August,” R.W. Baird analyst David Manthey wrote. The sales index fell 31.6 points to 47.6 in August. The Forward Looking Index dipped 1.7 points to 53.1, while employment grew a modest 1.8 points to 46.1 in August and supplier deliveries improved 3.4 points to 60.5. “Taking the FDI and FLI together, in our view, we believe this indicates August fastener market conditions showed relative stability in trends after several consecutive months of strong monthto-month improvement,” Manthey explained. Meanwhile, monthto-month pricing fell 6 points to 52.6, while year-to-year pricing declined 1.3 points to 65.8. The August FDI reading “indicates the trajectory of sales trends is improving m/m, but activity levels are likely not yet near pre-COVID levels,” Manthey stated. “Looking at the drivers of the m/m moderation in the FDI, sales trends continued to improve, but the employment index slightly decreased, dragging down the overall index,” Manthey noted. Twice as many distributors expect lower activity over the next six months, while 53% expect higher activity and 24% anticipate no change. A third respondent expressed concern over current trends. “Down 25% from last year’s August. Down 11% YTD compared to the same period last year. Very, very slow month.” The FDI is a monthly survey of North American fastener distributors conducted by the FCH Sourcing Network, the National Fastener Distributors Association and Baird.
American News
+ Lawson Products Buys Partsmaster Lawson Products acquired Greenville, TX-based Partsmaster from NCH Corporation for $35.3 million. The deal is Lawson’s largest acquisition in five years and will push its revenue to $400 million. Lawson paid $2.3 million of the purchase price at closing, and will pay the remaining $33 million in May 2021. Founded in 1968 as a division of NCH, Partsmaster is an MRO products distributor with $63 million in annual sales to 16,000 customers through its 200-plus sales reps. Partsmaster provides six specialty product lines, including Dyna Systems fastener line of domestic premium bolts, general Grade 8 and Grade 5 bolts, and stainless steel and metric fasteners. “This transaction is an important step in our continued growth strategy,” stated Lawson CEO Michael DeCata. “Partsmaster is a strong strategic fit with a similar VMI business model, similar product margins, a complementary product offering and a passion for providing great service to customers.” Founded in 1952, Chicago-based Lawson Products distributes MRO products and services. Lawson has distribution centers in all 50 states, Puerto Rico, Canada, Mexico and the Caribbean and is headquartered in Chicago.
+ MW Industries Combines With Life Sciences Business MW Industries parent company American Securities LLC was acquiring NN Inc.’s Life Sciences division and combining it with the Rosemont, IL-based fastener manufacturer. The $825 million transaction was expected to close in the fourth quarter of 2020. AFC Industries acquired Master Distribution, a distributor of channel and pipe fittings as well as related fasteners and accessories such as nuts, clamps, screws, washers, bolts, brackets and post bases. Terms of the deal were not disclosed. Br unswick, OH-based Master maintains a large stock of steel, 304 stainless, 316 stainless, aluminum, zinc plated, hot dipped galvanized, electro galvanized, painted, and powder coated, for commercial, industrial, infrastructure, utility and energy end markets. “ T he a c qu isit ion of Ma st er ext ends t he boundaries of our core business by adding a robust line of adjacent products,” stated AFC CEO Kevin Godin. “We are excited to apply our institutional experience and expertise to fuel growth at Master.” The deal is the 11th acquisition for AFC since being acquired by Incline Equity Partners in 2015. In January AFC acquired The Chess Group, a distributor of metallic components for OEMs.
“This transaction offers the right partner for Life Sciences and fair value for the business,” stated NN CEO Warren Veltman. “The combination with MW Industries will help Life Sciences accelerate growth and innovation across global markets, and position the business for long-term value creation and success to the benefit of all its stakeholders.” NN Life Sciences manufactures implants, surgical instrumentation, singleuse disposable devices, and assemblies for medical applications. Core capabilities include precision metal stamping; electron beam welding; CNC milling and turning; plastic injection molding and micro molding; plastic machining; and additive manufacturing. NN, which manufactures high-precision metal and plastic components and assemblies, planned to use the estimated $700 million in net proceeds from the sale to pay down its debt. Founded as a tool and die company, Rosemont, IL-based MW Industries manufactures precision springs and specialty fasteners for more than 25,000 customers in 35 countries. Its 50,000 products are sold through a combination of direct sales, catalogs, and distributors to original equipment manufacturers and aftermarket customers in aerospace, medical, electronics, energy, agriculture, construction, and other sectors. In 2017, MW Industries was acquired by equity firm American Securities in partnership with MW Industries management. China Fastener World no.61/2021
+ AFC Acquires Master Distribution
Fairfield, OH-headquartered AFC provides supply chain management of fastening and other assembly components. Customers’ industries include automotive, defense, fluid-handling, food equipment, lighting, medical, transportation and solar energy. AFC was acquired in 2015 by Incline Equity Partners, a Pittsburgh-based private equity firm.
067
American News + Stanley Engineered Fastening to Expand Kentucky Governor Andy Beshear announced that executives with Stanley Engineered Fastening, a Stanley Black & Decker company, plan to create some 49 high-paying job positions for Kentuckians with a US$6 million expansion at its Christian County facility. Stanley Engineered Fastening plans to add 30,000 ft2 to the existing 250,000 ft2 Hopkinsville facility, which will grow the current business and expand into other products. Once complete, the expansion will elevate the plant’s total employment to 205 workers. Work on the project is expected to conclude in July. Established in 1966, the Hopkinsville facility produces a variety of brackets, plugs, fasteners, inserts, bolts, nuts, rivets and screws.
+ Orbitform Acquires C&B Machinery Orbitform and a group of investors acquired Brighton, MI-based C & B Machinery for an undisclosed sum. C&B Machinery will operate as a separate entity with its own staff and facility. “We intend to carry on the heritage that C & B Machinery established over the last 40 years,” stated Orbitform president Phil Sponsler. “We look forward to working with the existing, highly skilled C & B team to grow the business.” Founded in 1980, C & B Machinery designs and manufactures high production and precision grinding machines, including their double disc grinding equipment, for automotive, aerospace and hand tools markets. Founded in 1984, Jackson, MI-based Orbitform designs and manufactures orbital forming riveting machines and forming, fastening and assembly automation equipment.
+ Fastenal Fastener Sales Stabilize Fastenal Co. reported the decline in fastener sales that began in March due to the pandemic continued to slow in August, with sales down 7.3% compared to an 7.5% decrease the previous month. Overall sales at Fastenal dropped 2.2% to US$465.2 million in August, while daily sales rose 2.5% to US$22.15 million during the month. Sales in the U.S. improved 1.9%, while sales in Canada/Mexico rose 3.8%. By end market, sales to manufacturing customers decreased 5%, and sales to non-residential construction customers were down 13.5% in August.
China Fastener World no.61/2021
The company’s workforce decreased 8.6% during the month to 17,747 employees. Distribution personnel shrank 10.3% to 2,591 while manufacturing personnel declined 11.4% to 624 workers. “The evolution of a market leader like Fastenal, now heavily invested in shifting to an e-commerce and omnichannel approach, represents where the industry is headed,” according to a Market Leaders report by Modern Distribution Management. “Fastenal is closing locations, consolidating inventory, putting its personnel inside customer locations and moving toward e-commerce.” Fastenal reported fastener daily sales declined 16.4% year over year in the second quarter of 2020 to US$392.3 million (26% of total sales) as sales of safety equipment (PPE) surged 116.3% during the quarter. Fastener sales declined 2.6% to US$449.7 million (32.9% of total sales) during the first quarter of 2020.
+ Danish Firm Rose Holm to Establish Its First USA Operations in Virginia Virginia Governor Ralph Northam, speaking on behalf of the Virginia Economic Development Partnership (VEDP), announced that Danish company, Rose Holm, a leading manufacturer of threaded bolts for the food and beverage, wind power and heat exchange industries in Northern Europe, will invest US$1.35 million to establish its first USA manufacturing facility in Henrico County in Virginia. The new operation will give the company close proximity to a major customer and further its wind energy efforts. Virginia successfully competed with Indiana for the project, which will create 10 new jobs. “Virginia is all in for clean energy, and we welcome Rose Holm’s decision to locate its first U.S. operation in our Commonwealth,” said Governor Northam. “Our Clean Energy Virginia initiative is driving new investment and new jobs in renewable energy, and now it is bringing a new manufacturing facility to Henrico County. We look forward to a strong partnership with Rose Holm as we work to make Virginia a hub for the East Coast offshore wind supply chain and service industries.” Established by Erik Rose Holm in 1953, Rose Holm is a privately owned Danish metal company that specializes in high-quality fastening products with a focus on supplying the global wind energy sector. Combining decades of know-how, logistics, and ongoing investments in the latest advanced manufacturing technology, Rose Holm’s two Danish production plants now manufacture fastener solutions year-round.
John Wolz, Editor of FIN (globalfastenernews.com) / Mike McNulty, FTI VP & Editor (www.fastenertech.com)
068
European News
Compiled by Fastener World
European News
+ Impact of Covid-19 Less Negative than Feared
+ GESIPA® Celebrates Its 65th Anniversary
After a significant slowdown in business due to the Covid-19 pandemic, Hilti Group has reported that initial signs of recovery are emerging. Total sales for the January to August 2020 period decreased by 12.3% to CHF 3.426 billion, and by 7.3% in local currencies, compared to the previous year.
In 1955 a small company named ‘G E S e l l s c h a f t f ü r I n t e r n a t i o n a l e PAtentverwertung’ was founded. Shortly afterwards a patent application was filed for the ‘process of producing breakstem blind rivet joints’ and a ‘hand tool for setting blind rivets’.
Christoph Loos, CEO of the Hilti Group, comments: “Following the unprecedented slump in our business during the spring lockdown, our figures have gradually recovered since June. We are therefore weathering the crisis better than originally feared, albeit with very large regional differences. This makes us cautiously optimistic, even though the crisis is by no means over and uncertainty remains high.”
This was the beginning of GESIPA®, including its first participation in the Hanover trade fair at the end of the 1950s, GESIPA was able to make a lasting impression on many customers from various industries with its blind riveting technology.
While last year got off to a good start, business in North Asia slumped sharply in February 2020 and from mid-March onwards there was a clear downward trend in all markets. After the low point in the 2nd quarter of 2020, a gradual recovery set in. From January to August, total sales fell by 12.3% to CHF 3.426 million. Net income fell by 13.9% year-on-year to CHF 314 million. The result is also burdened by the strong appreciation of the Swiss franc. The negative currency effect, for the period from January to August 2020, amounts to about 5% points in terms of sales.
Family owned until the end of 2008, GESIPA has now been a member of the internationally operating SFS Group for more than ten years and has established itself as one of the leading suppliers in the sector of blind riveting technology. From the first battery powered blind rivet setting tool to efficient, automatic processing with setting process monitoring, GESIPA blind riveting technology has been meeting the highest demands in industry and trade for 65 years.
+ LIGNOLOC® Now with Technical Approval
+ Unity is Strength
LIGNOLOC is the first collated wooden nail for use in industrial production, made from central European beech wood. The special design of the LIGNOLOC nail point and the large amount of heat generated by friction when the nail is driven in at a high speed cause the lignin of the wooden nail to weld with the surrounding wood to form a substance-to-substance bond. This effect – referred to as lignin welding – has been tested and confirmed by scientists at the University of Hamburg, by means of UV scanning of the cell structure. Key benefits of LIGNOLOC wooden nails include not acting as thermal bridges and avoiding unsightly wood discoloration or traces of corrosion, as well as causing less tool wear when processing nailed wooden components subsequently. Raimund Beck points out the nails are also ideal for ecological timber construction using 75% less greenhouse gases than when producing steel nails.
+ Dejond Adds New Seal to Watertight Range D e jo n d N.V h a s a d d e d a sealing solution to its watertight range of Tubtara® rivet nuts, the HDKX series with Precote® 5 resin seal, for applications requiring a f lush installation. The new Precote ® 5 resin material is applied on the rivet nut body, underneath the small or countersunk head, and was created after customers looking for a leak proof rivet nut for flush installation approached Dejond to find a reliable watertight solution. During installation of the rivet nut, excess resin material is scraped from the shank towards the head, forming a seal
Specialinsert® highlights its new DEFORM-NUT® SELFLOCKING deformation rivet is the ideal solution for fixing parts subject to risk of loosening and strong vibrations. Designed, patented and produced by Specialinsert ®, this deformable tubular rivet with self-locking thread, also patented, in cylindrical or hexagonal version provides a nylon ring at the end of the thread to friction the screw during assembly. It can be easily installed on boxes, pipes, sheet metal, profiles and on all those supports that do not allow the insertion of nuts inside them. DEFORM NUT® SELF-LOCKING combines advantages of the classic deformation rivet with the function of selflocking nuts. As well as installation on parts without the possibility of access from the inside, its technical advantages include anti-loosening guaranteed without the use of additional components such as a thread locker or spring washers, as well as a quick assembly of the connecting screw. This is due to not requiring the use of two tightening spanners, unlike the self-locking nut. Available in galvanised steel and stainless steel, as well as in other different shapes and dimensions, the DEFORM NUT SELF-LOCKING features a medium tightening torque for correct installation of M6 – M8, a tightening torque 9Nm -18Nm and traction loads of 13,000N – 21,000N.
between the flush head and the parent material, into which the insert is riveted. The seal is only 0.25mm thick, applies well on stainless and zinc plated steel and offers a good thermal and chemical resistance, making it suitable for use with water and many automotive fluids. For semihex rivet nuts the advised hex hole radius needs to be observed, but if correctly installed in properly formed holes, this resin seal ensures an IP 67 waterproof assembly. With the popular HX and HDPX series, featuring an O-ring or Rimlex® seal, Dejond states that the Tubtara® has set the standard for watertight rivet nut assembly. Dejond is an EN9100 certified Belgian manufacturer of Tubtara blind rivet nuts, with an expertise in cold forming stainless steel and innovative bespoke rivet nuts, and serves the general, automotive and aviation industries worldwide through a network of expert fastener distributors.
News provided by: Fastener + Fixing Magazine (www.fastenerandfixing.com)
069
China Fastener World no.61/2021
Earlier in 2020 the German Institute for Construction Engineering issued the National Technical Approval for load-bearing timber connections using LIGNOLOC® wooden nails. After extensive tests and complex calculation models, all expectations of the expert committee were met. The approval enables the planning, design and execution of load-bearing connections in timber frame construction. Planks and panels made of solid timber, woodbased materials, or gypsum fibre, can be attached to wood building materials using LIGNOLOC® wooden nails from Raimund Beck GmbH. In addition, connections can also be made with LIGNOLOC to produce bracing and loadbearing wall diaphragms.
European News + What is the Future for Cars? by Marco A. Guerritore, Editor in Chief of Italian Fasteners magazine
The car-bolt is atavistic. The car cannot exist without bolts and, conversely, the bolt owes its technical evolution to the progress of the car’s design dynamics over time. The car industry is very important for the fastener industry both in terms of consumption – an average of about 20 kg of fasteners are used in each vehicle – and the quality of the product. Most of the fasteners used in car manufacturing are special, and therefore, technologically advanced. Today, however, the car industry is going through a period of great uncertainty. The logical question is therefore: “What is the future of the automotive sector?” Many scenarios are opening up and all of them are disturbing. The first scenario is the one associated with Covid-19, which is proving to be more detrimental than the 2008-2009 crisis where the market lost 15% and returned to positive territory the following year. Today, due to the pandemic, the European car market is collapsing. The real effects of Covid-19 are however highlighted by the negative percentages of car sales in the most critical period of the pandemic, i.e. in April 2020, compared to the same period in 2019. The percentages of some European countries are shown below: BELGIUM
- 90.1%
An analysis of the distribution FRANCE - 72.2% in the decline of sales in European GERMANY - 61.1% countries shows that they are more ITALY - 97.6% consistent in countr ies where NETHERLANDS - 53.0% “confinement” has been harsher. POLAND - 67.1% In his report, the President of UK - 97.3% ANFIA (Italian Association of SPAIN - 95.6% the Automotive Industry) Paolo SWEDEN - 35.7% Scudieri, points out that in the first SWITZERLAND - 67.2% eight months of 2020 the European car market lost 2.67 million units. In August, a month with traditionally low volumes, the decline in registrations was again more significant (-17.6%), although not at the levels of previous months (June closed at -24%).
China Fastener World no.61/2021
The ANIA bulletin states that total registrations in Italy for the month of July amounted to 113,653 units (-10.9%), while volumes in August amounted to 88,801 units (-0.4%). In the first eight months of 2020, total registrations amounted to 809,655 units, a decrease of 38.9% compared to the volumes of the same period in 2019. The analysis of the Italian car market by fuel type is very interesting, again according to the data released by ANFIA. Cumulatively, since the beginning of 2020, the share of new diesel cars is 35%, with registrations down by 48.5%, while the share of petrol cars stands at 42% with volumes down by 42% in the January-August period. Alternative fuel cars accounted for 23% of total registrations, down by 4%. In particular, gas-fuelled cars decreased by 41% while registrations of electric cars (BEV – Battery Electric Vehicle) grew by 106%, plug-in hybrids by 200%, and nonrechargeable petrol hybrids by 30% and non-rechargeable diesel hybrids by 78%. Electric vehicles, as a whole, accounted for 14% of the market in the period between January and August 2020.
070
In addition to the market trends, it must be noted that with the advent of the pandemic, the notion of mobility is also changing. Due to the danger of catching the virus, especially in large cities, more and more people prefer to use private cars instead of public transport. This choice should therefore lead to a surge in the car market. On the other hand, however, it must be considered that, especially in large cities, the deterrent to use passenger cars is the chronic lack of parking and difficulty of circulation. Unfortunately, in recent years many Italian cities have developed without any consideration of the existence of cars. Furthermore, the high concentration of cars causes another drawback i.e. air pollution. This should not only make the authorities more responsible, but also large companies. They should speed up the implementation of their sustainability programmes in order to meet the expectations of consumers. Needless to say, people’s sensitivities and behaviours can change radically and very quickly under the influence of events. “We have witnessed the forceful emergence of a concept that is not directly linked to the pandemic, but that derives from an idea of wellbeing and the common good in which air quality, especially in large cities, is now considered a priority and no longer just a niche for convinced ecologists,” emphasises sociologist Franco Morace. “This is especially true among the younger generations, who already show a disaffection towards private cars and instead push for new forms of urban micro-mobility. For them, the car continues to be a mysterious object and certainly no longer an object of desire.” EUROPEAN UNION1 - NEW PASSENGER CAR REGISTRATIONS BY COUNTRY
provisional data
August
% Chg
% Chg
2020
2019
2019
January-August 2020 2019
AUSTRIA
20.906
29.888
-30.1
158,477
237,225
-33.2
BELGIUM
36.387
47.936
-24.1
297,524
403,534
-26.3
2019
BULGARIA
1.918
2.929
-34.5
15,206
24,372
-37.6
CROATIA
2.601
3.404
-23.6
25,151
47,825
-47.4
729
639
+14.1
6,699
8,509
-21.3
CZECH REPUBLIC
CYPRUS
16.611
25.026
-33.6
131,410
175,340
-25.1
DENMARK
17.608
18.692
-5.8
124,974
157,625
-20.7
ESTONIA
1.461
2.534
-42.3
12,603
18,893
-33.3
FINLAND
8.485
9.994
-15.1
64,976
79,494
-18.3
FRANCE
103.631
129.257
-19.8
998,409
1,467,924
-32.0
GERMANY
251.044
313.748
-20.0
1,776,604
2,495,536
-28.8
GREECE
6.853
9.594
-28.6
52,939
86,873
-39.1
HUNGARY
10.924
15.617
-30.1
78,645
105,443
-25.4
IRELAND
4.859
5.088
-4.5
78,889
110,527
-28.6
ITALY
-38.9
88.801
89.184
-0.4
809,655
1,325,704
LATVIA
1.113
1.627
-31.6
9,181
12,827
-28.4
LITHUANIA
3.397
3.665
-7.3
23,578
30,564
-22.9
LUXEMBOURG
3.671
3.811
-3.7
29,973
39,730
-24.6
NETHERLANDS
26.461
33.724
-21.5
219,129
293,043
-25.2
POLAND
34.707
48.107
-27.9
256,954
375,504
-31.6
PORTUGAL
12.417
12.435
-0.1
92,474
159,466
-42.0
ROMANIA
11.157
23.177
-51.9
73,723
118,003
-37.5
SLOVAKIA
6.980
10.051
-30.6
49,257
71,569
-31.2
SLOVENIA
4.357
5.006
-13.0
38,791
52,086
-25.5
SPAIN
66.925
74.424
-10.1
524,706
883,540
-40.6
173,925
221,016
-21.3
SWEDEN
25.522
29.477
-13.4
EUROPEAN UNION (EU)
769.525
949.034
-18.9
6,123,852
9,002,172
-32.0
EU142
673.570
807.252
-16.6
5,402,654
7,961,237
-32.1
EU123
95.955
141.782
-32.3
721,198
1,040,935
-30.7
581
803
-27.6
6,254
9,116
-31.4
ICELAND NORWAY
10.802
12.073
-10.5
79,798
99,460
-19.8
SWITZERLAND
16.260
19.437
-16.3
142,102
202,091
-29.7
EFTA
27.643
32.313
-14.5
228,154
310,667
-26.6
UNITED KINGDOM
87.226
92.573
-5.8
915,615
1,519,016
-39.7
TOTAL (EU + EFTA + UK)
884.394
1.073.920
-17.6
7,267,621 10,831,855
-32.9
WESTERN EUROPE (EU14 + EFTA + UK)
788.439
932.138
-15.4
6,546,423
SOURCE: NATIONAL AUTOMOBILE MANUFACTURERS ASSOCIATIONS 1 Data for Malta n.a. - 2Member States before the 2004 enlargement 3 Member States having joined the EU since 2004
9,790,920
-33.1
European News EUROPE (EU271+EFTA+UK) - NEW PASSENGER CAR REGISTRATIONS
BY MAKER
provisional data
August % 2020
% 2019
Units 2020
January-August Units 2019
% Change 20/19
% 2020
% 2019
Units 2020
Units 2019
% Change 20/19
VW Group
25.5
27.7
225,520
297,512
-24.2
25.9
25.0
1,880,042
2,710,676
-30.6
VOLKSWAGEN
11.0
12.1
97,442
129,580
-24.8
11.3
11.4
821,279
1,232,568
-33.4
SKODA
5.7
5.4
50,103
58,069
-13.7
5.5
4.8
402,178
524,939
-23.4
AUDI
4.9
5.6
43,218
60,012
-28.0
5.1
5.0
370,080
537,246
-31.1
SEAT
3.3
4.0
29,071
43,054
-32.5
3.3
3.4
237,646
363,183
-34.6
PORSCHE
0.6
0.6
5,293
6,325
-16.3
0.6
0.4
45,475
48,528
-6.3
OTHERS2
0.0
0.0
393
472
-16.7
0.0
0.0
3,384
4,212
-19.7
PSA Group
13.9
14.1
123,143
151,948
-19.0
14.5
16.1
1,056,164
1,747,847
-39.6
PEUGEOT
6.1
5.4
53,900
57,578
-6.4
6.2
6.1
451,407
664,992
-32.1
OPEL/VAUXHALL
3.8
4.9
33,448
52,660
-36.5
4.0
5.5
294,252
600,555
-51.0
CITROEN
3.8
3.6
33,377
38,805
-14.0
3.9
4.2
283,478
450,584
-37.1
DS
0.3
0.3
2,418
2,905
-16.8
0.4
0.3
27,027
31,716
-14.8
RENAULT Group
10.0
10.7
88,562
114,649
-22.8
10.3
10.6
751,187
1,146,319
-34.5
RENAULT
6.1
5.7
53,989
61,574
-12.3
6.9
6.7
501,070
722,924
-30.7
DACIA
3.9
4.8
34,112
51,680
-34.0
3.4
3.8
247,581
416,197
-40.5
LADA
0.0
0.1
382
905
-57.8
0.0
0.0
1,742
3,682
-52.7
ALPINE
0.0
0.0
79
490
-83.9
0.0
0.0
794
3,516
-77.4
BMW Group
7.1
5.5
62,767
59,032
+6.3
7.0
6.2
511,358
674,005
-24.1
BMW
5.7
4.4
50,615
46,964
+7.8
5.6
5.0
409,586
537,554
-23.8
MINI
1.4
1.1
12,152
12,068
+0.7
1.4
1.3
101,772
136,451
-25.4
HYUNDAI Group
8.3
6.6
73,391
71,045
+3.3
7.1
6.6
518,852
715,202
-27.5
KIA
4.1
2.8
35,920
30,261
+18.7
3.6
3.1
259,442
338,889
-23.4
HYUNDAI
4.2
3.8
37,471
40,784
-8.1
3.6
3.5
259,410
376,313
-31.1
DAIMLER
6.8
6.8
59,939
72,603
-17.4
6.2
6.0
448,610
647,805
-30.7
MERCEDES
6.5
5.6
57,892
60,468
-4.3
6.0
5.3
437,360
576,723
-24.2
SMART
0.2
1.1
2,047
12,135
-83.1
0.2
0.7
11,250
71,082
-84.2
TOYOTA Group
5.8
5.1
51,320
54,309
-5.5
5.8
5.0
421,705
540,256
-21.9
TOYOTA
5.5
4.7
48,578
50,783
-4.3
5.4
4.7
393,652
504,744
-22.0
LEXUS
0.3
0.3
2,742
3,526
-22.2
0.4
0.3
28,053
35,512
-21.0
FCA Group
5.7
5.1
50,585
54,318
-6.9
5.7
6.2
412,270
671,628
-38.6
FIAT
3.9
3.3
34,212
35,389
-3.3
4.1
4.3
294,608
467,219
-36.9
JEEP
1.2
1.2
10,950
12,418
-11.8
1.0
1.1
69,950
120,431
-41.9
LANCIA/CHRYSLER
0.3
0.2
2,262
2,520
-10.2
0.3
0.4
24,725
41,650
-40.6
ALFA ROMEO
0.3
0.3
2,845
3,421
-16.8
0.3
0.3
20,412
37,235
-45.2
OTHERS3
0.0
0.1
316
570
-44.6
0.0
0.0
2,575
5,093
-49.4
FORD
5.9
5.6
52,232
60,065
-13.0
5.5
6.0
401,722
651,470
-38.3
NISSAN
2.2
2.2
19,893
23,905
-16.8
2.4
2.5
176,522
272,826
-35.3
VOLVO CAR CORP.
1.9
1.6
16,549
16,902
-2.1
2.3
2.0
168,558
217,497
-22.5
JAGUAR LAND ROVER Group
0.9
0.9
7,895
9,178
-14.0
1.3
1.4
92,530
148,360
-37.6
LAND ROVER
0.6
0.6
5,491
5,922
-7.3
0.9
0.9
65,737
96,645
-32.0
JAGUAR
0.3
0.3
2,404
3,256
-26.2
0.4
0.5
26,793
51,715
-48.2
MAZDA
1.2
1.4
10,840
14,860
-27.1
1.2
1.5
85,088
157,527
-46.0
MITSUBISHI
0.8
1.1
7,478
11,341
-34.1
1.0
1.0
72,934
104,209
-30.0
HONDA
0.7
0.7
6,302
8,052
-21.7
0.7
0.8
47,913
83,844
-42.9
SOURCE: ACEA MEMBERS 1 ACEA estimation based on total by market - 2Includes Bentley, Lamborghini and Bugatti - 3Includes Dodge and Maserati
A great incentive for the car of the future should come from improvements in automatic driving. The car industry is making a great effort by investing a lot of money in research aimed at completely resolving the problem within a reasonable time period. At present there are 5 levels of autonomous driving. It starts from the first level which consists, above all, of electronic driving assistance with the use of radar and various sensors, and ends with the fifth level where the car is able to move independently in any direction and in all conditions.
The vast majority of cars sold today have level one and level two driving systems, and therefore with partial autonomy. Moving to higher levels of autonomous driving is not a simple matter; large investments in design and experimentation are required, but the progress of automatic driving will certainly lead to a great revolution in the use and perhaps in the very concept of cars. Automatic driving combined with innovative concepts of eco-friendly motorisation could be the catalyst to give new life to a sector that has been showing signs of advanced ageing for some time. The entire and important sector of components will also be involved in this phase of renewal, which in 2019 had a turnover of about 170 billion euros and employed more than three hundred thousand people. And within the context of car components, the fastener holds one of the places of honour and must therefore play its role with the usual swiftness and ability. In order to be ready to face future events, fastener manufacturers will have to bring to the table: inventiveness, courage, initiative, professionalism and above all financial commitment. Consequently, the collaboration between the bolt and the car will be as strong as in the past, even during the renewal phase.
071
China Fastener World no.61/2021
According to sociologist Morace, the social concept of the car is gradually changing in the minds of consumers. The car as a symbol of social status is beginning to fade, especially among the new generations, it is losing its importance due to a change of mentality because it is less and less the object of desire. Furthermore, what currently dampens the enthusiasm of those who are about to buy a new car is the great difficulty in choosing the right one. There are so many questions: Diesel or petrol? Petrol or hybrid? Hybrid or electric? Electric or is it better to wait for hydrogen? In short, there are many questions that embarrass, disorient and demotivate potential buyers who could, especially if they live in a city, opt for alternative solutions such as any form of “car sharing”.
Russian News
Russian News Compiled by Fastener World
+ BelZAN Becomes the First Supplier of Fasteners for Volkswagen in Russia The Belebeevsky plant “Avtonormal” (part of the “RT-Capital” of the state corporation “Rostec”) became the first Russian supplier of fasteners for the Russian division (“Volkswagen Group Rus” LLC) of Volkswagen. An agreement was signed for a period of four years, according to which the company will annually supply more than 9 million parts for Volkswagen and Škoda passenger cars. The plant's products are already used in the assembly of bodies and the installation of units at the Kaluga plant and in a separate division of the mentioned automaker in Nizhny Novgorod. Under the contract, the enterprise has mastered the production of twenty new types of fasteners with increased corrosion resistance. As noted by General Director of “RT-Capital” Kirill Fedorov, in 2020, thanks to the support of the Ministry of Industry and Trade of Russia, the authorities of Bashkiria and the state corporation “Rostec”, represented by “RT-Capital”, it is possible to prevent the bankruptcy of the enterprise and begin the process of its stabilizing. The press release clarifies that the share of BelZAN in the Russian market of fasteners for the automotive industry is about 36%. The plant is the main supplier to KAMAZ and AVTOVAZ.
+ Ukrainian Industries in the Fight Against COVID According to sources from Metiz Magazine, many companies in Ukraine are working partly as a result of COVID-19. Additionally, Ukraine made a definitive AD duty determination on certain steel fasteners from China and the rate of 67.4% turmoiled the market. The situation has just recovered since November 2020. Ukraine staged a strict lockdown in January 2021 to curb the spread of COVID. The only industry in Ukraine that showed growth is the building industry. To reduce unemployment, the Ukrainian government announced a “Great Building Program” that led to growth of 0.2% over the entire building industry in the first 9 months of 2020. Hopefully the Ukrainian fastener industry could grow in 2021. In 2020, the Ukrainian GDP declined about 6% and the import of steel products dropped by 20%. According to World Bank, the Ukrainian GDP growth in 2021 is expected to remain modest at 1.5%, rising to about 3.7% by 2023 and the import will recover in the second half of 2021.
+ BelZAN is Headed by a New Leader In the Belebeyevsky plant "Avtonormal" (BelZAN, part of the structure of "Rostec" "RT-Capital"), the general director has been replaced, reports "Interfax". On September, 17, 2019 the Board of Directors of the enterprise prematurely terminated the power of Sergei Rodionov, who headed BelZAN since March 2019. The former general director of Molot-Weapon LLC (Kirov region) Roman Bukarev has been appointed as the new general director of the plant. The contract with him is concluded for three years.
+ New Equipment Put into Operation at “Parallel”
China Fastener World no.61/2021
In the end of October 2020, the company “Parallel” (Orel) launched a high-speed press with induction heaters for hot stamping of turnkey nuts of 18 to 30 mm from steel 40X, 09G2S, st.35, st.45. Earlier in October, new equipment for heat treatment of products, longer than 3 meters, was launched. The new heat-treating unit was used to manufacture embedded products for the foundation of “The Sun of Moscow”, the largest Ferris wheel in Europe.
+ Oryol Steel Rolling Plant Begins Supplying Fasteners for Retail for the First Time Oryol Steel Rolling Plant (part of Severstal-metiz, Severstal hardware group) began supplying fasteners for retail sale. The first store was the "Lesotorgovaya" base of Orel. A new product of the plant is now presented on the counters of “Lesotorgovaya” - long threaded rods and small bolts. In the near future, the steel rolling plant will expand both the geography of retail supplies and the range. In addition to supplies for retail trade, the plant is engaged in small-scale wholesale.
+ MMK-METIZ Increases Export Sales According to the results of work in the first 8 months of 2020 OJSC MMK-METIZ showed the highest indicator compared to the same period of 2019: fasteners + 102%. Despite the ongoing global pandemic and the effect of restrictive measures, shipments of hardware for export in 2020 increased by 106% compared to 2019.
072
Oryol Steel Rolling Plant is the first in Russia to begin production of full-threaded studs with a thread angle of 60 degrees. The cost of the investment project amounted to almost 59 million rubles. The development of a new type of product took place within the framework of an investment project for import substitution.
Russian News + A Program to Provide KAMAZ with HighStrength Fasteners Has been Developed
On September 9 last year, the high-strength fasteners plant (ZVK) BERVEL celebrated its 5th anniversary, to which the partners and consumers of the enterprise were invited. “For us, these are the first years of the establishment of our enterprise. And we survived”, the event was opened by Yuri Medvedev, General Director of BERVEL.
Within the framework of this program, MMK and MMKMETIZ should master the production of high-quality section and calibrated rolled steel grades 32CrB4, 36MnB4 and 42CrMo4. The development of steels with various alloying elements will significantly improve the performance properties of automotive fasteners. Currently, regulatory documents are being developed for hot-rolled and calibrated steel.
“Our plant was initially conceived as an extremely ambitious project, the entry into the market of which would not go unnoticed, which is what happened. We were focused on the professional level of the team, on the development of technologies, on the introduction of new products and gaining consumer confidence by producing reliable and quality products.”
MMK-METIZ will supply calibrated rolled products of these steel grades to BelZAN for the manufacture of fasteners with strength classes 10.9 and 12.9.
Today, the high-strength fastener plant “BERVEL” is the most modern plant for the production of fasteners and calibrated rolled metal products in Russia”, continued Yuri Medvedev.
The ultimate goal of the joint program is the complete localization of production of high-strength automotive fasteners in the Russian Federation.
The plant is certified for compliance with the international standards "Quality Management System" according to ISO 9001: 2015 and for compliance with the production control system of the enterprise with the right of CE-marking of the products. The export direction of sales is developing, the geography is constantly expanding and, in addition to well-established supplies to the CIS countries, products are already being delivered to Germany and the Netherlands. A s pa r t of t h e d evelo pm e nt of Z V K "BE RV E L", t h e implementation of the second stage, which will increase the volume of production, expand the range of products and, as a result, expand the sales market for finished products, is envisaged. Even in the current situation with coronavirus infection in the world, the plant did not stop, providing all possible requirements and taking measures to preserve the health of the team.
+ The Oryol Company to Invest over 100 million Rubles to the Launch of a Fastener Packaging Line The Expert Council of the Industrial Development Fund (FRP) has approved the issuance of a loan to “SDT-Group” LLC (Oryol Region) for 50 million rubles. The funds will be used to launch a new automated line for fasteners packing. The total cost of the project is 101 million rubles. The new production capacity will be almost 2,000 tons of products per month.
+ New Course for Localization of Auto Components Production for the Recovery of Industry The Ministry of Industry and Trade of Russia, together with the Industrial Development Fund, are planning to launch a grant program for the localization of the production of auto components in the Russian Federation in 2021. “We will launch a grand program for the implementation of investment projects to localize the production of auto components," said Denis Pak, Director of the Automotive Industry Department, during a meeting with Denis Manturov, Head of the Ministry of Industry and Trade. "We have already pledged 1 billion rubles for grants." Pak also announced the intention to introduce a point system for the export of auto components, which will allow manufacturers, as well as enterprises of related industries, to join the global supply chains of global car manufacturers. Will the new measures help the development of automotive fasteners production? At the exhibition Innoprom 2020 Vadim Sorokin, President of GAZ Group, spoke about the loss of the Russian auto component industry: “The result of the industrial assembly regime was the entry into the market of global platforms with a low level of localization in Russia and the displacement of local platforms. The consequence is a contraction in demand for the Russian auto components, disruption of production chains and the departure of some suppliers. In fact, during this period we have lost the auto component industry".
News provided by: Alexander Ostashov, editor of “Fasteners, Adhesives, Tools and...” Magazine Mariya Valiakhmetova, editor of “Metiz” Magazine
073
China Fastener World no.61/2021
+ The High-strength Fasteners Plant “BERVEL”. The First Years from Birth are the Most Important
A jo i n t p r o g r a m o f M M K , M M K-M E T I Z a n d Bel Z A N t o provide KAMAZ with high-strength fasteners has been developed. This was announced by the press center of MMK-METIZ.
Brazilian News
Brazilian News Compiled by Fastener World
+ ZwickRoell: 10 Years in Brazil The German manufacturer of material testing machines celebrated with all cares needed April 22, 2020 marked the 520th anniversary of the Discovery of Brazil, the same day that ZwickRoell Group completed ten years of opening its subsidiary in this South American country. However, it is almost unnecessary to recall the reason that led the company to postpone its commemorative event, which ended up taking place in November 26, 2020, in Campinas City, SP, home of ZwickRoell's local subsidiary. “On a scale of 10, I consider a grade 7, which could be much better, but our start was a little difficult, especially since we spent the first two years operating in a joint venture formed with a local company. But it was in solo activity that we improved the results, especially in the last three years,” commented Gustavo Videira, the Brazilian Managing Director. As global leaders in machinery and technology for material testing and quality control - with a history that began in 1854 - Zwick and Roell are individual companies in the same segment and country, Germany, which have joined together since the 1990s.
+ The Âncora Founder Died After many years as the founder and owner of R. Simioni store and fastener distributor, in São Paulo State Capital, Roberto Simione and Renato, his son, founded Âncora Fastening Systems, a Brazilian company that combines activities of a manufacturer and importer in fasteners. Since then, the company established in Vinhedo town, SP, has expanded rapidly, mainly in the construction sector, currently operating with more than 200 employees on an area of 25 thousand m² , with 7 thousand m² as the manufacturing floor.
+ SouthWind International: 25 years One of the most important and solid sales agents of machines and tools for the fastener manufacturers in Brazil When it comes to machinery and tooling for the fastener industry in Brazil there are two names that work as a guide and reference on the subject: SouthWind International (SW) and the company’s founder, J. Graef. Founded in 1995, these two names merge as SW market share is growing not only in Brazil but also Latin America and in the US where the company has started a subsidiary in Florida since 2015.
China Fastener World no.61/2021
SW’s expertise reaches all fastener production areas, from raw-material preparation, throughout all steps of the production processes, including the inspection and packing of final products. Some of the companies that SW has exclusivity in Brazil, as the sales agent are Nedschroef, Weighpack, Universal Punch, PTG-Reed, Wrentham Tool Group, Reed Machinery, Tecno Impianti, Videx and others.
+ November was the Best Month in 2020 for the Auto Industry But the Brazilian sector was haunted by shortage and high prices According to the monthly survey showed on December 7, 2020, from Anfavea, the Brazilian Automaker Association, November was the best month of 2020. However, almost all industries, not just cars, were haunted by a shortage of raw materials, components and constant price increase, as well as the restrictions generated by the pandemic.
074
In November 2020, 238,200 units of vehicles were produced, a growth of only 0.7% over October, and therefore, the industries are unable to keep up with the increase in demand caused by problems mentioned above. This result is a 4.7% growth over the same month in 2019, a period when there were around 330 thousand units of vehicles in stock, while until the conclusion of monthly report were just 120 thousand units of vehicles in stock. In the factories and in the stores network the stock was just for only 16 days of sales. However, the year-to-date output at 1,804,759 units was 35% lower than 2019.
Brazilian News + Fastener Imports Closed with a 23% Drop
+ Jomarca Acquires South Brazil
Currency depreciation was good to local producers
The agreement covers just the accessories unit
The sales of bolts, screws, nuts, rivets, nails and other kinds of fasteners (made of iron, steel, copper, or aluminum) to Brazil closed the year with a drop of around 23%, but seller countries - such as China (with 25% market share by value), USA (16%), Japan and Germany (10%) and Taiwan (5.6%) - were already in recovery, resulting mainly from the second quarter of 2020. In November 2020, US$ 46.87 million (9,765 tons) worth of fasteners landed on the Brazilian ports, while October 2020 was US$ 43.50 million (9,115 tons). Closing in on November, the imports totaled US$ 451.4 million (93,733 tons), with a 22% drop.
As one of the most important companies in the Brazilian fastener industry, Jomarca announced, in August 2020, the acquisition of the entire industrial park of South Brazil Furniture Accessories, owned by the Group South Brazil (GSB). With 30 years in the market, GSB opted for the sale to invest more in its activities in the non-woven fabric business. “This agreement consists of the acquisition of all lines of accessories from GSB, such as hinges and slides, except for the plastic line of handles. In the coming months all the equipment will be moved from Caçador town, from Santa Catarina State, to Jomarca's industrial plant in Guarulhos, São Paulo State. After the change is done, we estimate that it will start operating in the beginning of 2021. However, a part of it was already in operation in 2020. As a result, our current number of employees should jump from 1,000 to 1,200 people. We will expand the Jomarca portfolio of furniture accessories and deliver even more variety to our customers and partners,” told Ricardo Ma rques Castel ha no, Joma rca super i nt endent director.
Hassmann factory
+ Hassmann on 65th Anniversary
Ricardo and João Marques Castelhano (superintendent-director and chairman from Jomarca)
Today, the company is one of the most important Brazilian fastener manufacturers especially as an automotive supplier. Carlos (son), Peter (son), Elka (mother) and Karl Hassmann (father)
In 1955, an Austrian and Brazilian couple, Elka and Karl Hassmann (1930 - 2014) founded in Imigrante town, Rio Grande State, Brazil, the Metalúrgica Hassmann. At the beginning it was just a modest repair company, making maintenance on equipment and manufacturing spare parts for other local industries. Soon after, the activities were enlarging such as manufacturing door locks, door windows and metal frames for windows to the PUC University, in Porto Alegre City, the State Capital, 130 km away from Immigrante. However, its activities in the fastener industry begun in 1960 onwards especially because of the search for a series of products, which followed international standards and were a necessity in Brazil, with its industrialization process just beginning.
Karl (father), Elka (mother), Carlos (son), Peter (son), Letícia (grand daughter) and Augusto Hassmann (grandson)
Currently, the Hassmann has 280 co-workers, and its installed capacity allows the production of around 1.8 thousand tons per month, divided on over 50 thousand fasteners types, such as bolts, screws, rivets and special parts produced in diameters from 5 to 30 mm, through cold and hot forming process, always following a strict quality regulation, supplying products for the automotive, agricultural and electrical-electronic industries. Also, the company has operations overseas, with its own office in Brickell Key, Miami, Fl, USA.
+ Until September 2020, Brazil Imported 60% from 2019’s Total Finishing the first nine months in 2020, Brazil imported 74,853.96 tons of fasteners (US$ 361.37 million), 60.4% of the 123,923.4 tons (US$ 621.65 million) bought during 2019. During September 2019 Brazil imported 7,976.48 tons (US$ 38.98 million). For bigger fastener suppliers like China, obviously, it is going to be hard to finish this year well, and that was without a deep fall on imports, also caused by real (the Brazilian currency) depreciation. However, the result will be more reasonable than expected, with a fall around 25% from 2019.
075
China Fastener World no.61/2021
Since then, the Hassmann has been working with much dedication, not withholding effort to achieve and maintain excellence in quality, and became one of the most important fastener manufacturers in South America.
Brazilian News + The First Woman as ArcelorMittal Business Director A young executive takes charge of "Brazilian Sul Fluminense" industrial units In the ArcelorMittal - Sul Fluminense, one of the Brazilians industrial steel units, the position of Director Business on long steel, including products such as steel bars and wire rods used for fastener production, was passed to a woman. The announcement was released last August by the CEO of this business unit at Cia, Mr. Jefferson De Paula, who said: "That news is a source of great pride for us because Tatiana Furtado Nolasco de Abreu are breaking barriers and paradigms within our traditionally male segment. That post took by her including the Barra Mansa and Resende industrial plants, both towns from the Rio de Janeiro State, that employ around 1,300 direct and indirect employees, the majority of whom are men". With a degree in Production Engineering, Nolasco has been working in the steel sector for 20 years, is married, aged 40 and is a mother of Rafael and Paula (6- and 4-years old). Tatiana Nolasco
+ Linear Guides: More Advantages for Norlam Thread Rolling Machine Users Installed on thread rolling machines produced by Norlam Indústria de Máquinas e Ferramentas Ltda., Linear Guide is a system that provides operations with high precision along the course of rolling external threads on fasteners and similar products.
China Fastener World no.61/2021
“The precision is reflected on the alignment of profile and high rigidity and durability of tools. In addition, its use simplifies maintenance and reduces costs”, said Mr. Nelson Rodrigues, the director from the Brazilian company. In addition to manufacturing machines within the 5 to 100 tons range, Norlam also operates in the Norlam Linear Guides recovery of machines and tools used in threading, such as thread rolling dies and thread rolls. News provided by: Sergio Milatias, Editor of Revista do Parafuso (The Fastener Brazil Magazine) milatias@revistadoparafuso.com.br www.revistadoparafuso.com
076
Special Feature
Innovation Alley 1. M8 Undercut Anchor Wit h patents in Taiwa n, China, Japa n a nd Ger ma ny, Laiterli Group (Laiterli International Engineering) in Taiwan has developed an M8 undercut anchor which is able to fasten tightly with masonry and does not require tapping the anchors during operation. It is reusable, easy for operation and inexpensive.
compiled by Fastener World
1
According to National Center for Research on Earthquake Engineering (Taiwan), the M8 undercut anchor did not distort or loosen during the quake test and there was no cracking and damage on the masonry. The anchor successfully withheld up to 1,600kgf in an SGS-approved torsion test and is compliant with B/T32839-2016 standard.
2. No Break Screw "No Break" Screw by Kitamura Seiko Corporation contains at its front end a blade portion to cut the wood and prevent wood from cracking, as well as a threaded portion to increase the screw's thrust. These designs help achieve the following 3 advantages: 1. No wood cracking when the screw is driven into the ends of the wood. 2. The screw will continue to drive in even if it hits a knot in the wood. 3. No need to follow the growth rings when driving the screw.
3. Security Fastener to Prevent Businesses Becoming Victims of Crime
2
4
A new range of security fasteners has been launched to help businesses to cut the cost of being a victim of crime from their overheads. The innovative 5-Lobe pin from TR Fastenings is the first complete range of security fasteners made from corrosion-resistant A4-70 stainless steel - the perfect product for outdoor use, in particular in marine, health and medical sectors because of its non-reactive qualities. The fastener’s five-sectioned screw head means that it can only be undone by someone with specialist tools, preventing its removal by an opportunist criminal. Fastenings made with corrosion-resistant A4-70 stainless steel do not degrade if they come into contact with salt water and other chemicals that have an impact on other forms of steel. The durability of the high grade material means that components need to be replaced less often.
3 China Fastener World no.61/2021
The 5-Lobe pin is rated as a level 2 enhanced security product and can be supplied with button or countersunk heads in either machine screws or self tapping screws. A4-70 stainless steel is a high tensile strength stainless steel with excellent corrosion resistance making it perfect for both internal and external applications. It is used in the manufacture of medical surgical instruments and in the pharmaceutical industry where cleanliness is absolutely key - the addition of molybdenum to its composition provides the A4 grade with a greater level of corrosion resistance. Its composition means it is also perfect for use in marine environments.
4. The New M-Grip™ T304 Stainless Steel Lockbolt System In continued efforts to improve the industry standard, Goebel Fasteners has developed a patented new multi-grip lockbolt system made completely from T304 Stainless Steel. In applications where a wide grip range is needed and a consistent flush pin break to the collar is favorable, the Goebel M-Grip™ is the new and improved standard in the market. Essentially the M-Grip’s wide grip range and various sizes can replace up to 14 sizes of the classic 6-groove locking fastener system. Similar to all Goebel engineered fasteners, the M-Grip™ provides a top level of quality and vibration resistance. The M-Grip™ installs consistently with reliable and identical installed values.
077
Special Feature
5
5. New Bolt Mark Identifying Fastener Loosening and Tampering Permatex®, a leading innovator in chemical technology for automotive maintenance and repair, has introduced a new product designed to help professional technicians and DIYers alike easily identify loosening and tampering of nuts, bolts, fasteners, and assemblies. Permatex Bolt Mark is a tamper-proof indicator paste that provides the user with a visual marker of completed work and easily identifies if a fastener has become loose or damaged. Designed to deliver a tamper-proof torque seal, Permatex Bolt Mark provides warranty protection for the user against tampering. It can also help save time when completing a job, by providing a visual indication of which assemblies have been torqued and which still need to be tightened. The quick visual evidence by Bolt Mark also helps speed up safety checks in professional and amateur racing applications.
6. QV-7108 3D Inspection Machine The latest model "QV-7108 3D" developed by Japanese K&K Engineering Corporation is the first inspection machine in the Japanese fastener industry that comes with a 3D photographing function. The illuminating device installed to the camera on top of the existing model "QV-7108" casts on and off a net-shaped light on workpieces and analyzes the reflected light in real time to generate 3D graphics. The different heights on a workpiece are color-coded. The workpiece's 3D shape is analyzed to check its burrs and thickness deviation. "QV-7108 3D" can check (pre-oiled) nuts up to M24 in nominal diameter. For M24 nuts, it can check 100 pieces per minute. It has two index tables with an inverting device in between to flip over the nuts.
6
7. "S-Clean" Liquid for Surface Treatment
7
Nickel based alloy is a highly corrosion-resistant material that is hard to process and surface-treated. Japanese Sasaki Chemical succeeded in developing "S-Clean RE100" which is an etching liquid specifically used on nickel based alloys such as Inconel and Hastelloy. The liquid can remove burrs on parts (including fasteners) made of nickel based alloy and perform etching on them. "S-Clean RE-100" is the only etching liquid within the industry it belongs to that is free of toxic hydrofluoric acid. It can reduce processing time and the troubles in waste water discharge.
8. Spray-type Rust Remover Applicable to Threads Japanese Engineer Inc. has added ZC-28 Spray Type Rust Remover, suitable for wide spraying, to the "NejiSaurus" kit series. Features:
China Fastener World no.61/2021
8
1. Instantaneous reaction to rust. Rust removal of small parts completed within 3 seconds. 2. Neutral liquid for safety. 3. The liquid can seep into the tiny gap between the bearing surface and threads when sprayed at screws installed on components. 4. Applicable to automobiles, agricultural machines, pipes and so on.
9. Low-cost Bolt Loosening Inspection Technology Shibaura Institute of Technology teamed with PhD researchers from University of Edinburgh and successfully developed a way to evaluate bolt loosening at low cost. They utilized ultrasonic vibrations inaudible to human ears to measure the frequency and axial force at the tip of a bolt through which they can inspect bolt loosening. This process doesn't rely on inspectors' skillfulness and is therefore simple, convenient and low-cost. This technology can be introduced into machines for inspecting thread loosening.
078
9
Fastener
World News
President Mark Wu (QST International Corp., an automotive screw manufacturer) thinks EU's anti-dumping investigation on Chinese fasteners means an opportunity for Taiwanese fastener industry because QST now sells to Europe. Its export value of automotive screws sold to Germany amounts to USD 200 to 250 million per year, taking up 30% of its total export. Most of the products for Germany are sold from QST's headquarters in Taiwan, or manufactured by German steel plants and then supplied locally. Almost none of the products are sold from QST's plant in Xiamen City of China. It is expected that QST will be very likely to see some orders switched from China to Taiwan in the future.
compiled by Fastener World
Taiwan Fastener Industry Seeks Government Help in Light of RCEP Impacts
EU Launches AD Investigation Against Chinese Iron and Steel Fasteners Accordi ng to a n official jour nal the Eu ropea n Com mission released on December 21st, 2020, it has launched an antidumping investigation agai nst cer tai n impor ts of iron and steel fasteners from People’s Republic of China. The CN codes of products involved this time include 73181290, 73181491, 7318149 9, 73181558 , 731815 6 8 , 7318158 2 , 7 3181 5 8 8 , e x 7 3181 5 9 5 , ex73182100, and ex73182200. A request for a hearing with the Hearing Officer must be submitted within 15 days of the date of entry into force of this official journal. The investigation is expected to come to a preliminary determination with the announcement of a provisional antidumping measure within 7 months of the date of the date of entry into force of this official journal.
EU's Anti-dumping Investigation on Chinese Fasteners, a Window of Opportunity for Taiwan EU has launched the AD investigation on certain fastener products imported from China, including automotive screws and construction small screws. The last time that EU whipped on China's fasteners was 5 years ago. Mr. Tu-chin Tsai (TIFI Chairman) expects an additional order value of USD 1 billion for the Taiwanese automotive fastener industry if EU does impose AD duties on Chinese fasteners. He points out that automotive screws are the main products exported to Europe, taking up over 20% of Taiwan's total export. Germany is the second largest export destination for Taiwan. Other screw products going to Europe include small screws. The U.S. remains the top export destination for Taiwan, taking up over 40% of Taiwan's total overseas sales.
Taiwan Ministry of Economic Affairs (MOEA) met with representatives from Taiwan Industrial Fasteners Institute (TIFI) and other associations at a conference discussing the RCEP impacts on industries. Before the conference, TIFI chairman TuChin Tsai said in an interview that Taiwan fastener industry was ranked third in the world, but that its production value dropped from NTD 176 billion in 2018 to NTD 143 billion in 2019, and it is fairly questionable whether the value for 2020 could reach NTD 110 billion as a result of the high NTD exchange rate and other countries' high tariffs on Taiwanese fasteners. According to Tsai, NTD appreciated by 12%-15% over the past 2 years, resulting in an annual loss of NTD 5 billion on Taiwan fastener industry. As a result, he is calling for NTD depreciation. Meanwhile, an average 5%-30% tax is imposed on Taiwanese fasteners exported to ASEAN. He thinks that RCEP has no impact on domestic electronics, 5G and medical industries, which are strong performers in Taiwan. Taiwan fastener industry is a decent performer in aerospace, automobile and electronics, but faces tough competition coupled with negative factors in exchange rates and tariffs. "Without industrial competitiveness, we may be looking at domestic plant closures or moving overseas." Mr. Tsai Yong-Yu, TIFI vice president and president of Jinn Her Enterprise, said the industry had already deployed in Southeast Asia as part of Taiwan government's New Southbound Policy. The branches in Southeast Asia aim to export products to highend markets in the U.S. and Europe and bring competitiveness to the industry, but the pandemic has put a halt to export. With no improvement visible through the second quarter of 2021, he hopes the government will help in ways such as depreciating NTD.
Steel in Short Supply and Strong Demand in Taiwan Japanese steelmakers have paused taking orders and it follows that steel is in short supply and strong demand. Steel price for the first quarter of 2021 is sure to rise and is expected to continue the uptrend in the second quarter. New records have been set for 9 consecutive years for international iron ore price which has surged by 80% since 2020. Taiwan CSC's steel price is to continue the uptrend in January and the first quarter. Demand for wire rods and steel plates is strong. CSC President expects the heyday of the steel market to continue through June 2021. Downstream companies see light at the end of the tunnel with their business operation recovering.
079
China Fastener World no.61/2021
- Industry Update -
Fastener World News Tycoons expects the wire rod price to continue upwards. The company's export is turning around which is expected to remain so through the second quarter and bring remarkable profits.
Ukraine Made a Definitive Antidumping Duties Determination on Certain Chinese Steel Fasteners Ukraine announced on September 26 of 2020 a definitive determination to impose anti-dumping duties on certain steel fasteners originating in China starting September 29, 2020, based on the final decision stated in document AD-465/2020/4411-03. The duty rate will be 32.47% for Haining Hisener Trade Co., Ltd. (Hisener Industrial Co., Ltd.), 38.37% for Ningbo Jinding Fastening Piece Co., Ltd., and 67.40% for other Chinese suppliers, effective for 5 years, involving product codes falling within 7318156890, 7318158290, 7318158890, 7318159590, 7318169290, and 7318169990. Ukraine initiated an anti-dumping investigation on certain Chinese steel fasteners on December 7, 2019. May 28, 2020, Ukraine announced a preliminary affir mative deter mination on involved Chinese products, according to the decision stated in document AD-447/2020/4411-03, that involved products would be subject to a temporary 19.75% anti-dumping rate effective for 4 months.
- Companies Development Elgin Expands Range of OEGrade Fasteners for GM LS GEN III, IV and V Engines Elgin Industries, a leading U.S.-based manufacturer of engine and chassis components, has added to its extensive range of original equipmentgrade fasteners for popular General Motors LS Series engines. It is important to replace head bolts, main bearing cap bolts and other hardware after one use to prevent loss of clamp load and potential engine damage. Each Elgin fastener meets OE specifications and is machined from U.S.-grade materials to ensure superior strength and reliability. Elgin is the premier manufacturer of push rods, rocker arms, valves, valve springs, camshafts, lifters, timing sets and other precision-engineered components for automotive, high-performance, and medium and heavy-duty engines. The company operates a state-of-the-art engineering, manufacturing and distribution complex in Elgin, Illinois.
Simpson Strong-Tie Moves Minnesota Warehouse to Larger Facility Simpson Strong-Tie, the leader in engineered structural connectors and building solutions, announced the relocation of its warehouse facility in Eagan, MN, to Inver Grove Heights, MN, seven miles away. The warehouse has moved to a new building located at Inver Point Business Park, 8450 Courthouse Blvd., Building 1, Inver Grove Heights, MN 55077. The new building is 46,500 sq. ft. larger than the previous facility, and all 19 employees in Eagan have transferred to the new location. The company has invested in the move as a commitment to future growth and to better serve their customers with faster product delivery and Will Call access. The new location provides more dock and office space, a larger training center, more efficient order picking and enhanced warehouse safety.
Japanese Auto Parts Maker Sankei Sets up a Core Factory in Indonesia
China Fastener World no.61/2021
Expansion of the Aerospace Sector: Aviation Certification EN 9100:2018 for 3d-prototyp GmbH in Switzerland 3d-prototyp GmbH, has received the official aviation certification EN 9100:2018 in Switzerland. The seal of approval is a prerequisite for supplying the aerospace industry with 3D printed components. Although a forward-looking technology, additive manufacturing is still used very little in Switzerland. Since October 2020, 3d-prototyp GmbH has been the only 3D printing service provider in Switzerland that is certified according to EN 9100 and already has many years of experience in the production of aerospace parts using highperformance materials (Ultem TM 9085, Ultem TM 1010, Nylon 12, Nylon 12CF).
080
Sankei Co., Ltd in Mie Prefecture of Japan manufactures pi ns, r ivets, sha f ts and other automotive pa r ts. The compa ny has already had bases in the U.S. and Shanghai for production and sales. Now t he I ndonesiabased plant P T. TIGA KARUNIA INDONESIA has been completed and will act as an overseas manufacturing and supply base. Sankei has a complete line of part formers to manufacture various automotive precision parts. The Indonesia-based plant along with its other overseas bases will become a core factory outside Japan in the future to provide the world market with high quality and low-cost products.
Fastener World News Announces Accufast, Inc. as Official Master Distributor for Western Canada Goebel Fasteners, Inc. announces a new and exciting partnership with Accufast, Inc. as their official master distributor for Western Canada. The two companies entered into an agreement that sees Accufast, Inc. become the exclusive master distributor for Goebel Fasteners, Inc. M-Grip™ Lockbolt System and entire blind fastening product lines across Western Canada which by definition includes the four provinces of Alberta, British Columbia, Manitoba, and Saskatchewan. “Accufast is an industry leader who provides extensive knowledge about blind fastening systems and the proper tooling to ensure the best parts are used in every application,” said Marcel Goebel, CEO of the Goebel Group. Murray Mathers, President of Accufast, Inc. was equally pleased stating. “Over the last few ye a r s o u r i nve nt o r y h a s g r ow n sign ifica ntly, a nd by pa r t ner i ng with Goebel to look after western Canadian distribution, we will be able to better fill client’s needs from our recently acquired much larger Edmonton warehouse facility and provide even faster access to the extensive range of fasteners, cordless tools, and unique products such as the all new stainless M-Grip.”
Double Coiled Spring Washers for Railway Track With ® Dörken Coating System Approved by DB Another positive result out of the great cooperation between Growermetal and Dörken®: DB (Deutsche Bahn) has recently approved the Delta-Protekt® KL100 coating on Growermetal’s patented Double Coiled Spring Washers, produced according to UIC 864-3. These washers are widely used for railway applications, to fix the rail to the railroad ties. The partial serrations on the bearing surfaces of the washer prevent the loosening of the bolt and the risk of breakage. Railway washers are frequently exposed to challenging weather conditions. For this reason Growermetal supplies its Double Coiled Spring Washers coated with the high-performing Dörken® coating system Delta-Protekt® KL100 able to reach outstanding anti-corrosion performances with over 720 hours in neutral salt spray test according to ISO 9227, without adhesion issues during operational stress or reduction in anti-loosening performance.
AIS Receives Reward for Outstanding Quality
China Fastener World no.61/2021
AIS-All Integrated Solutions, an MSC Company, proudly announces its recent award for Outstanding Quality. It was awarded at the Motus Annual 2020 Suppliers Con ference. T he award recognizes AIS for shipping over 10,000,000 pieces with zero defects. AIS was the only supplier to receive this award in 2020. Everyone from AIS’ quality, warehouse, sales, and account executive teams worked toget her to provide exc eption a l service to Motus---they deserve all the credit for the award. “We are extremely proud of our entire team. They have truly come together to make sure our customers receive the highest quality services and products. Earning this award is con f i r mation t hat A IS’ focus on quality, company culture, and employee training is paying off for our customers,” stated Nick Ruetz, president of A IS-A ll I nteg rated Solutions.
081
Fastener World News Japanese Yahata Neji Establishes New Heat Treatment Technology Utilizing Water Vapor Yahata Neji Corporation teamed with Shibaura Institute of Technology and successfully developed a heat treatment technology using water vapor which can simultaneously achieve high strength and high corrosion resistance on fasteners, such as aluminum screws and special parts. With this technology, it'll require only one process to form uniform coating on target objects (with or without complex shapes) by exposing them in high-temperature and high-pressure water vapor, while achieving the same level of corrosion resistance as acquired from anodizing treatment. The company will optimize the technology through multiple processing tests and is looking to complete the mass production system in two years.
Vossloh Supplies Fastening Systems for New Heavy-haul Line in Mongolia Vossloh won the first contract for the supply of rail fastening systems for a heavy-haul line in Mongolia. The roughly 270 km long line will connect the Tavan Tolgoi with Gashuun Sukhait port at the Chinese border. After its completion, about 30 million tonnes of goods, primarily raw materials for steel production, will be transported on the new rail link each year – with significant environmental advantages compared with the current road haulage. The deliveries of the fastening systems started some time ago, and an approximately 70 km long section has already been completed. Under the current plans, construction work will be completed by the end of 2021.
BBI Appoints Scott Gibson to Proferred Global Sales and Product Director
China Fastener World no.61/2021
BBI/Proferred is pleased to announce the appointment of Scott Gibson to the position of Proferred Global Sales and Product Director. Scott will direct Proferred’s sales efforts with its building and drywall customers. He will also support customers on a global level, work with buying groups, and on its tradeshows.
Mate Precision Tooling Announces Corporate Name Change to Mate Precision Technologies Mate Precision Tooling, a global leader in sheet metal fabrication products and solutions, announced that it is changing its corporate name to Mate Precision Technologies. The name change reflects the company’s broader commitment to metalworking and using its expertise to drive innovations to shape the future of factory productivity. Firmly committed to its existing product lines, the name change allows for the expansion into the metal cutting and machining industry with the release of a major new product line in 2021. The new name is effective September 1, 2020, and will be implemented across the company’s product and services through 2021.
082
APEX TOOL Names Bob Heisner as Chief Marketing Officer Sparks, MD. – Apex Tool Group (ATG) recently a n nounced the appointment of Bob H. Heisner to SVP and Chief Marketing Officer. In this position, Bob will lead the further development of all ATG hand tool and power tool brands – which include GEARWRENCH®, APEX®, Crescent ®, Weller ®, Cleco ®, and SATA® – while continuing to sharply accelerate ATG’s e-commerce capabilities. As a member of the Executive Leadership Team (ELT), Bob will report directly to Jim Roberts, Chief Executive Officer, ATG, and be based in the company’s Lexington, SC, office. Since joining ATG in July 2016 as VP Marketing – Global Power Tools, Bob has helped champion the company’s Marketing Build and Transform initiative for the past several years. Prior to joining ATG, Bob led the development of some of the industry’s leading brands, including: DeWalt Accessories, Kwikset Locks, Hennessy Tools (a division of Danaher), Lenox Industrial Tools, and Rubbermaid Commercial Products.
Fastener World News - Acquisitions S.W. Anderson Company Acquires OEM Fastening Systems
Tom Smith, president and owner of OEM Fastening Systems, said "combining our reputation for excellent products and services with S.W. Anderson's manufacturer relationships and knowledge base will give OEM customers a powerful partner — one with local, personalized service, and high-tech products from international manufacturers.” OEM Fastening Systems was started in 1969 as a specialty fastener distributor. OEM assists design and manufacturing engineers in the automotive, appliance, outdoor power equipment, and other markets with fasteners, tooling, and tooling repairs. Founded in 1926 and headquartered in Downers Grove, Illinois, S.W. Anderson Company supplies specialty and standard fasteners, hardware, slides, and manufacturing components for the industrial manufacturing market. The company provides services to tier manufacturers and OEMs in automotive, commercial vehicle, consumer goods, aerospace, and food & beverage industries, amongst others and has seven sales offices/distribution centers with over 35 technical sales professionals throughout the US.
Avantus Aerospace Acquires California Screw Products Avantus Aerospace, a global leader of C-Class and Composite parts for the aerospace and defense industry, is pleased to announce the acquisition of California Screw Products ("CalScrew") in Paramount, California. CalScrew manufactures unique, high-strength fasteners for commercial and military aerospace applications and has a natural fit with other companies within the Avantus group, including F TC ( Fastener Tech nology Cor p), acquired in December 2019, and FIT (Fastener In novation Technology), acquired in September 2020. CalScrew, founded in 1984, has built a strong reputation as an innovative and reliable
China Fastener World no.61/2021
S.W. Anderson Company, a specialty and class C component distributor, has acquired OEM Fastening Systems, a specialty fastener distributor in Lawrenceville, Georgia. "We're excited to welcome the OEM Fastening Systems employees to the S.W. Anderson family" stated Jim Degnan, president of S.W. Anderson. "OEM's reputation in the southeast U.S. as a customer-focused product expert aligns closely with S.W. Anderson's value proposition. We look forward to working with our new team members to extend our products and services to OEM’s customer base. "
083
Fastener World News supplier of difficult-to-manufacture 'sta nda rds' ser vi ng more t ha n 45 aircraft platforms. Some customer relationships span multiple decades, such as those with Boeing (including BDSI), Incora (Wesco), Honeywell, Collins, Pratt & Whitney, GE, Airbus and Lockheed Martin. The existing management teams will continue to operate and grow the business under the guidance of Fastener President Den n is Sue d k a mp, a nd Di re ctor of Bu si n e ss D evelopment L a r r y Valeriano. Larry was formerly the President of CalScrew.
L&W Supply Acquires Assets of Drywall Supply Inc. L&W Supply Corporation, a leading distributor of topquality building materials and specialty products in the United States, announced that it acquired the assets of Drywall Supply Inc. (“DSI”), a building materials distributor with locations in the north and western suburbs of Denver, Colorado. Founded in 1996, DSI focused on residential and commercial markets, providing drywall, acoustical ceilings, insulation, steel stud and related products. The acquisition includes three DSI branches in Loveland, Lafayette and Golden, Colorado, that will remain open. The Drywall Supply team has a long history of providing contractor customers with the support and expertise they need. As part of L&W Supply, they will join a company committed to being the go-to partner for contractors nationwide, recognized for an unparalleled level of service and top-quality products.
- Association Events Taiwan Industrial Fasteners Institute Re-elects Mr. Tu-Chin Tsai as Chairman TIFI held a member representatives assembly on December 11, 2020, where the association re-elected the next directors and supervisors. Mr. Tu-Chin Tsai was elected Chairman. Three other representatives elected as vice chairmen were Mr. Tsai Yong-Yu from Jinn Her Enterprise, Miss Ann Hong from Shih Hsang Ywa Industrial, Mr. Sun Tea-Ren from Jau Yeou Industry. Mr. Simon Lin from Fong Prean Industrial was elected convener of the board of directors and supervisors.
CMCA 2020 Board of Directors Meeting and Members Assembly in Shanghai China General Machine Components Industry Association (CMCA) held its 7th Board of Directors meeting and members assembly on November 3-4, 2020 in Shanghai. Nearly 200 directors, member representatives, and invited guests attended the assembly, which was hosted by Chairman FONG Guan. The BoD meeting took place on November 3, 2020, which included the discussion on members assembly agenda, the annual report of missions completed by CMCA in 2019, the recognition of CMCA Technological Innovation Award Recipients, etc. Directors of the meeting also approved that XUAN Bi-Hua would take the position as the new Chairman after the closure of the members assembly. Chairman FONG gave his opening speech in the members assembly on November 4, 2020. He pointed out that “the assembly was held in a very challenging year, but our industry still performed quite well over the year. However, the basic problems in the industry still exist and the world is suffering the severe pandemic, so we cannot underestimate the influences these problems may cause to our industry. I hope that in the new year all of us can achieve better results.” The “CMCA Technological Innovation Award” was also presented to 125 products in the event.
China Fastener World no.61/2021
With the effort of directors as well as the enthusiastic participation of CMCA member representatives, invited guests, and relevant companies, the 7th CMCA BoD meeting and members assembly both came to a perfect closure with a big success.
084
2020 Fastener Companies
Industry Focus
Financial Reports Compiled by Fastener World, Updated on Jan. 22, 2021 Monetary unit in millions
USA
(USD) Net Income (Loss)
2020
9,286
173
(170)
2019
10,433
(438)
(1,125)
Change (%)
-10.9
---
---
Period
Year Ended Dec.
Period 2020 Year Ended Aug.
2019 Change (%)
Year Ended Dec.
Year Ended Aug.
14,864 as of Dec. 2020 vs. 14,631 as of Dec. 2019
Revenue
Operating Income
Pre-tax Income
Net Income
Total Assets
225.245
10.441
10.967
7.717
13.020
12.972
9.356
106.453 as of Aug. 2020 vs. 92.878 as of Aug. 2019
-19.8
-15.4
-17.5
221.241
+1.8 Net Sales
Gross Profit
Operating Income
Pre-tax Income
Net Income
2020
5,647.3
2,567.8
1,141.8
1,132.7
859.1
2019
5,333.7
2,515.4
1,057.2
1,043.7
790.9
Change (%)
+5.8
+2.0
+8.0
+8.5
+8.6
2020
3,192.399
1,343.322
350.740
334.250
251.117
2019
3,363.817
1,432.043
399.996
383.129
288.865
Change (%)
-5.0
-6.1
-12.3
-12.7
-13.0
Period
Total Assets
Total Assets
3,964.7 as of Dec. 2020 vs. 3,799.9 as of Dec. 2019
2,382.430 as of Aug. 2020 vs. 2,311.237 as of Aug. 2019
Europe
(GBP) Revenue
Gross Profit
Operating Profit
Pretax Profit
Net Profit (Loss)
2020
200.221
55.107
4.077
3.042
(238)
2019
208.952
62.635
17.096
16.421
12.244
Change (%)
-4.1
-12.0
-76.1
-81.4
---
Period
Year Ended Mar.
Total Assets
216.138 as of Mar. 2020 vs. 204.567 as of Mar. 2019
085
China Fastener World no.61/2021
Sales
Pre-tax Income (Loss)
Industry Focus
Japan & South Korea Revenue
Operating Profit
Ordinary Profit
Net Profit (Loss)
2020
12,468
16
108
(184)
2019
14,567
585
668
472
Change (%)
-14.4
-97.2
-83.8
---
2021
11,142
27
105
73
Change (%)
-10.6
+70.2
-2.3
---
Sales
Gross Profit
Operating Profit
Adjusted Earnings After Tax
2020
63,714
7,653
219
160
2019
80,282
9,144
1,368
1,041
Change (%)
-20.6
-16.3
-83.9
-84.6
Period
Year Ended Jun. (JPN) Prospect for Year Ended Jun.
Period
Pung Kang
China Fastener World no.61/2021
(KRW)
086
Year Ended Aug.
Total Assets
14,517 as of Jun. 2020 vs. 15,535 as of Jun. 2019
Total Assets 83,048 as of Aug. 2020 vs. 88,126 as of Aug. 2019
Industry Focus
Southeast Asia Gross profit
Operating profit
Pre-tax Profit
Net Profit
(MYR)
Year Ended Jun.
2020
534.907
48.282
9.714
7.300
2.417
2019
680.729
97.961
71.846
68.822
57.578
Change (%)
-21.4
-50.7
-86.4
-89.3
-95.8
Total Income
Pre-tax Profit (Loss)
Net Profit (Loss)
2020
3,325.019
(151.938)
(322.123)
2019
4,552.456
37.996
25.585
Change (%)
-26.9
---
---
2020
1,518.753
(106.527)
(77.516)
2019
1,955.478
77.557
58.623
Change (%)
-22.3
---
---
2020
31,450.1
3,764.0
3,140.4
2019
40,198.9
6,196.9
4,361.9
Change (%)
-21.7
-39.2
-26.9
Period
(INR)
(INR)
Year Ended Mar.
Year Ended Mar.
Year Ended Mar. (INR)
Total Assets 289.250 as of Jun. 2020 vs. 277.444 as of Jun. 2019
Total Assets 2,527.309 as of Mar. 2020 vs. 2,820.867 as of Mar. 2019
1,399.809 as of Mar. 2020 vs. 1,408.142 as of Mar. 2019
32,315.2 as of Mar. 2020 vs. 33,963.5 as of Mar. 2019
China Fastener World no.61/2021
Revenue
Period
087
Association
Interview with
Global Fastener Association Presidents EFDA
NFDA
TFTA
FAI
European Fastener Distributors Association
U.S. National Fastener Distributors Association
Taiwan Fastener Trading Association
Fastener Association of India
president
president
chairman
president
Dr. Volker Lederer
Adam Derry
Josh Chen
Abhijat Sanghvi
FIJ
KFFIC
NEVIB
HKSFC
The Fastener Institute of Japan
Korea Federation of Fastener Industry Cooperatives
NEVIB
Hong Kong Screw and Fastener Council
Executive Director
chairman
president
chairman
Yoshikazu Oiso
Hansung Jung
Robert Klaassen
Cheung Kin Ming compiled by Fastener World
The year 2020 has posed many challenges to the global industries and the original supply chain deployment and operation has also confronted with unprecedented drastic change. Many behaviors used to be considered abnormal have recently become a new normal in the everyday life of the public, not to mention that the global fastener companies have been also suffering the impact, forcing them to seek more opportunities when shipment approaches are still not stable and social distancing is still required.
China Fastener World no.61/2021
As a result, we have invited EFDA, NFDA, TFTA, FAI, FIJ, KFFIC, NEVIB, HKSFC to share with us their feedback on the following questions mostly in regard to the impact of the pandemic on the fastener industry. We hope that, through the valuable sharing of their perspectives on the questions and the approaches as well as resources these associations have recently established with their governments, our fastener industry could soon recover its vibrant prosperity.
▍ 1. Since the outbreak of the Covid-19 in 2019, have the domestic industries with great fastener demand in the region your association represents appear any significant change? Is there any difference from the industries’ previous expectations or forecasts?
088
EFDA
We have seen a decline in demand in many industries on the customer side. Especially the automobile and the machine construction industries have been hit particularly hard by the pandemic. These industries continued to struggle with major problems during the second and third quarter of 2020. But there seemed to be first signs of recovery in September 2020.
Association NFDA
There definitely was a disruption in demand. At first it appeared the disruption was going to be temporary as the U.S. and individual States put plans together to address the pandemic. Unfortunately, uncertainty is still high here in the States, so demand is at best unstable. There is some level of optimism for market recovery.
NEVIB
In the Dutch market, many industrial companies felt the effects of the Covid-19 outbreak, especially in the field of the automotive industries. E.g., manufacturers of touring cars, trucks and also cars saw their order-input drop by large numbers. As these companies work with delivery times of many months, it is expected that the year 2021 will be a very hard one to survive. But also other producers of industrial products saw their turnover drop because of lower investments by their clients.
FIJ
Local automotive, machinery, electrical, and many other industries with a large amount of fastener demand all faced the problem of production suspension. In addition, the suspended production of building materials (sanitary products, for example) in China led to delayed shipments to Japan, thus resulting in a stagnant status of residential construction activities in Japan. As a result, the domestic fastener demand from March through July 2020 was around 50% less than the previous same period.
KFFIC
We have been facing many changes since the outbreak of COVID-19. In particular, we, as the fastener industry, are greatly concerned about the sluggish market, including the decreased demand in the automobile industry and the advent of ecofriendly vehicles, which is causing a big transformation of the automobile industry. As the biggest consumer of products of the fastener industry, the Korean automobile industry accounts for almost 70% of total fastener demand in Korea. Looking at the market condition of the Korean automobile industry, we are shocked by the following figures: accumulated production dropped by 16.3% from January to August 2020; exports decreased by 28.9%; and the accumulated exports of vehicle parts fell by 28.1% in monetary terms during the same period. Furthermore, we are also worried that the ever-increasing size of the market for eco-friendly automobiles including EVs and hydrogen-powered electric vehicles will have a great effect on the fastener industry. Moreover, the forecast for Korea’s overall economic growth has been repeatedly adjusted, adding to the atmosphere of negative growth. We are also aware that the global economic growth is also predicted to be negative. In February 2020, the IMF predicted that the global GDP would be 3.3% in 2020, and 3.4% in 2021. But in August, the organization adjusted its prediction, forecasting that the global GDP would be -4.9% in 2020, and 5.4% in 2021. After the OECD forecasted, in February 2020 that the global GDP would be 2.9% in 2020 and 3.0% in 2021, it also adjusted its forecast, predicting that the global GDP would drop to -6.0% in 2020 and 5.2% in 2021 when the global economic growth is expected to be stabilized as long as there would be no re-spread of the virus. Korea is no exception. The Bank of Korea expected in February 2020 that the Korean GDP would stand at 2.1% and 2.4% in 2020 and 2021 respectively. But in August, the Korean central bank adjusted its prediction to -1.3% and 2.8% in 2020 and 2021 respectively. We believe such economic predictions and industrial trends are accurately reflecting the current status of the fastener industry.
FAI
The impact of the Covid-19 pandemic has been global and we can safely say that no country or industry sector has been spared from any negative change. The Indian Fastener Industry is no different. With at least a couple of months of complete shutdown to limping partial starts, Buyer orders did reduce, cash flow cycles were affected & partial attendance of staff and workers have had a staggering impact on company financials. While it is apparent that there would be a big dip in Industry’s expectation and forecasts, it is too early to estimate numbers especially for our Industry where a large chunk of which are MSME’s (micro, small, medium enterprises) and whose financials are not public.
NFDA
Of course. Distributors and OEM’s alike are managing cash and thus inventory. There is definitely a more conservative approach and companies are looking for cost savings wherever they can find it to protect their P&L and their employees. In terms of supply chain, pushing out orders and then requiring expedited deliveries seems to be the norm these days. Demand is uncertain and volatile.
EFDA
We cannot see major disruptions in the supply chain.
NEVIB
As fasteners are used everywhere the Dutch domestic supply chain was hit in a severe way.
089
China Fastener World no.61/2021
▍ 2. (Following question 1) Do those market changes generate any specific impact on the domestic fastener supply chain?
Association FIJ
Take the machine and equipment industry for example, if the supply of some parts used in machines is suspended, the entire supply chain will be forced to stop. The decentralized supply chain may be also a problem to the industry.
KFFIC
It is true that the sluggish economy and shrinking demand are directly impacting the fastener industry. The operation rate of the fastener industry has dropped, causing employment uncertainty and having a negative effect on the relevant production, domestic consumption and exports.
FAI
The major impact on the domestic fastener supply chain has been availability of steel wire being the raw material for industry. As companies began resuming to possibly full capacity by Aug-Sep 2020 with order books refilling, the unfortunate blow came in the form of steel availability being limited and resulting in spiraling steel prices. Another reason was that imported raw material was coming in restricted numbers. The domestic fastener chain which relies heavily on credit to customers was also severely affected by payments being deferred and cash flows which were already affected by a few months of shutdown took a further hit. As mentioned since our domestic industry consists of a large number of MSMEs, there are a lot of companies finding it difficult to tide over these tough times.
▍ 3. In response to those market changes and impacts, have domestic fastener suppliers adopted any necessary measures or adjustments? EFDA
Many fastener distributors agreed to postpone the dates of delivery as the demand by their customers declined. In order to secure liquidity some fastener distributors postponed orders from their suppliers.
NFDA
Yes. They have reduced work force and operating hours to control costs and to provide safety to their employees.
NEVIB
Because of the lower turnover, Dutch fastener suppliers had to take their own measures. Thanks to a large Dutch government support programme, which included subsidizing salaries for companies that suffered a loss of turnover of 20% or more, so far not many jobs were lost in the fastener industry. However, large investments by the companies are put on hold.
China Fastener World no.61/2021
FIJ
The domestic companies’ usual way to deal with a sudden complete stop of supply is to purchase the same category of products from different companies and keep the number of critical products in stock above a safe level.
▍ 4. According to your observation, has the domestic fastener industry your association represents reported any sign of recovery after adopting those necessary measures and adjustments?
090
KFFIC
There will be various ways to respond to these market changes. From the perspective of the domestic industry, we could reshuffle the structure of the fastener industry, or reduce the concentration on the automobile industry in the medium and long term. In the short term, we could carry out programs for boosting the competitiveness of the industry. For instance, we could pursue smart strategies for the automation and digitalization of the industry, use government’s programs such as designating SMEs as ‘professional companies for materials, parts and devices,’ and as ‘professional companies for source technologies,’ and actively utilize the government’s support institutions for maintaining employment stability. Each of the fastener companies is certainly implementing such programs, and the KFFIC is also actively promoting and providing information for the Korean fastener industry to conduct activities for strengthening its competitiveness.
FAI
India being heavily populated is a country where the impact of Covid-19 has been big and to adapt to measures such as social distancing has been hard though most are aware of the preventive advantages and have adapted well to take these measures. These measures also have impacted production. The learning curve for adaptation to market changes is yet on as we face a global u npre ce dent e d sit uat ion a nd t he process of adjustment will be continuous even after the end of Covid-19.
EFDA
We have seen signs of recovery since September 2020. We do not think, however, that these positive developments are the result of any particular measures taken by the fastener distributors during the pandemic but that they are owed the general recovery of the global market.
Association NFDA
There was some optimism as the economy saw some improvement in September and October 2020; levels were still well below pre-COVID production levels but were improving. There was some uncertainty with it being an election year as well. A lot of uncertainty around us.
NEVIB
The Covid-19 crisis started in The Netherlands in mid-March, 2020. There was a major lockdown for three months, and the effect was that economic activity was low until July 2020. In September 2020, business picked up somewhat. But as Covid-19 is still raging on in the Netherlands, the future is uncertain.
KFFIC
FIJ
Such measures and programs are mostly those from which we will be able to see results in the long term. Meanwhile, with the expansion of the ‘untact’ businesses, each of the companies actively involved in would have immediate effects. We know that they are making deals through ‘untact’ online video conferences under this circumstances where face-to-face meetings are impossible. We are seeing results by utilizing the government’s fast-track system when entering and leaving the country. While conducting such activities, the quarantine system of each nation due to COVID-19 is undoubtedly the biggest obstacle.
FAI
As mentioned earlier, the recovery has been gradual and good after the initial months of shutdown with even exports picking up in due course. Though as order books kept filling in well since Aug-Sep 2020, we faced a big obstacle of steel availability. This will also be a short period as we expect major recovery starting from Jan 2021. This is keeping in mind that no big spike in Covid-19 numbers resurfaces causing partial or full shutdown again.
▍ 5. According to what we have learnt so far, suppliers in some markets have reported gradual recovery of their capacity, however, their shipments are still partially restricted due to international border control. Have the members your association represents also encountered similar issues in their product export or import?
KFFIC
After all, the bottom line is whether exports and imports would go through customs even if deals are made online. To address such issues, policy cooperation among governments is absolutely needed, rather than measures adopted by the industry. As far as we know, the industry faced too many difficulties when unloading their shipments at an early stage, and such issues have now been addressed to some extent. In addition, the issue of clearing customs in those nations with which we have large amounts of trade are reported to be somewhat alleviated by establishing a fast-track system when entering and departing such nations, thanks to the cooperation of relevant governments.
EFDA
We have not received a ny complaints by our members regarding restrictions on shipment.
FAI
At the moment there are no signs in Holland of problems due to international border controls. However, during the first half year of 2020 delivery times of some shipments in China were longer as a result of the Covid-19 problem in China.
KFFIC
The KFFIC is presenting suggestions made by and delivering problems faced by our members to each of the relevant government bodies. As far as we know, the government and authorities are working together to address concerns of the industry and they all continue to carry out cooperation with trading nations.
FAI
We have not taken up this particular issue as we have focused on larger issues that we have addressed with authorities especially those concerning steel which is the primary raw material.
091
China Fastener World no.61/2021
Exports have recovered well in the second half of 2020 and though there are no known restrictions on shipments from India, the impact on cost has been alarmingly high with sea freight and clearance charges increasing. This obviously has an effect on the viability of order acceptance with customers not willing to absorb these costs thus affecting the bottom line. We hope this will ease out in due course.
NEVIB
▍ 6. (Following question 5) Have your members adopted any measure to deal with the shipment issue? Would it be possible that the Association help these members negotiate with relevant authorities on this issue for further assistance?
We hope to see normal economic activities soon.
Association ▍ 7. The fastener demand from the automotive and aerospace industries seems to be on a drastic decline. Which industry sector do you think may be the alternative for the suppliers to seek more opportunities? Do you see any industry that shows a significant increase in fastener demand? EFDA
Electro mobility is def initely a growing sector, and the solar industry is strong, too. We know that the DIY sector has done particularly well during the pandemic.
NFDA
Don’t give up on automotive. Focus more on crossovers, SUV’s and truck production, as well as electric vehicles in this category. In terms of alternative sectors, I would suggest focusing on industries whose product(s) allow people to stay home, whether it be to shop or to work, or recreational products, lawn/garden or healthcare.
NEVIB
At the moment, the demand for fasteners for the automotive and aerospace sectors is very challenging. And as almost all industries are operating at a lower level, we see no possibility to look for more other interesting sectors.
FIJ
The demand for automotive fasteners is decreasing, while the demand for construction fasteners remains flat.
KFFIC
As many changes would come with both crises and opportunities, the trend of “untact” businesses emerging after the virus outbreak is providing another opportunity for the ICT industry even in this gloomy mood of the automobile industry. Securing demand from the ICT industry is not a simple task for the fastener suppliers to handle. But we strongly believe that we are able to secure it based on continuous R&D. The aerospace industry is a painful field for the fastener suppliers. Even though we have built robust cooperation and relations with the automobile industry, we have failed to advance into the aerospace sector, which, in fact, ironically could become a very attractive area for us to move into. We think that we could achieve fruitful results by shifting our know-how we have built up from the automobile industry to the aerospace sector.
FAI
The automotive industry has been affected since 2019 with slower demand and was further hit in 2020 massively. The passenger car segments are those which slow down when aspiring consumers stall their buying plans or when regular consumers postpone their planned purchases in tough financial periods. Covid-19 has affected millions of jobs and businesses & the automotive industry has been severely hit. On the positive side, demand for the two wheeler vehicles which is a huge number in India has been upbeat. Meanwhile, the aerospace industry is not a significantly big industry for Indian suppliers yet. Though not in the short run, the infrastructure industry holds huge promise in India with big plans and huge spending laid down by the government. As there is anticipated recovery for most sectors by 2022, this is one sector which will definitely be big for India.
China Fastener World no.61/2021
▍ 8. Although there still exist many variants amid the pandemic, making it difficult for us to forecast future development of the fastener industry, in your opinion, what can the fastener industry do to face challenges that may come up in the next few months? Is there any aspect you think suppliers can currently pay more attention to? EFDA
Dur ing the pandem ic it is more important than ever for suppliers and customers to stay in close contact and inform each other about their needs as long as the uncertainties brought by the Corona virus and protectionist tendencies on the world markets continue to exist.
NEVIB
NFDA
FIJ
Be nimble and quick to change course as the details change in the US economy. The election results is a big part of our country’s strategy moving forward.
KFFIC
In this context, the fastener industry is not a leading industry. Fastener suppliers just follow the demands of their clients. I see no aspects our suppliers can currently pay more attention to, other than permanently striving to deliver the best service to their customers. The reliability of fasteners made in Japan has to be continuously maintained and the productivity has to be increased. As a result, continuous technology innovation definitely cannot be ignored.
We think that no one can be sure of any possibilities of re-spread or variants of COVID-19. What is clear and important is that the mankind will conquer the virus sooner or later, and remember it as one of many infectious diseases people faced in the past. We, as the fastener industry, are making a number of adaptations to overcome the barriers we face, which will surely help support the competitiveness of the industry.
092
Association FAI
As you rightly point out, it is extremely difficult to forecast the future growth. The stark reality and biggest challenge is survival of the fittest. Keeping costs in check, efficient production, tight quality controls and high management commitment coming out of 2020 even financially breaking for a major chunk of the industry is the need of the hour. Sticking with the right customers who have stood by their suppliers in their tough times is paramount. Those customers who are looking at squeezing their suppliers in terms of unviable pricing or heavily delayed payment cycles should be reconsidered.
▍ 9. Due to the pandemic, many exhibitions and industry activities have been already cancelled or become virtual events in order to avoid “face-to-face” contact, does your association also plan to give similar events in the following months? EFDA
EFDA had its 20th anniversary in 2020. We postponed the festivities to 2021 because we would like to celebrate this event together with our members and friends from Europe, Asia and America. With regard to our daily work EFDA and its members make frequent use of videoconferences and webinars.
NFDA
Yes. Lots of virtual events are
scheduled.
NEVIB
At the moment our association avoids all face-to-face contacts, and we expect things to stay like this for the foreseeable future.
FIJ
Meetings of our committee are not held in any specific place, but are given as videoconferences, and so are our seminars and presentations.
KFFIC
Some of the common damages arising from the outbreak of COVID-19 are the cancelation and delay of various events including exhibitions, unveiling shows for new products, large-scale seminars, etc. Even as many Korean businesses have also encountered damages, Korea Metal Week, the only event of the fastener industry in Korea, was successfully held under a somewhat quiet atmosphere in June 2020. Therefore, a number of events and projects have been canceled or postponed to next year. We hope that COVID-19 is quickly eliminated and we expect that Korea Metal Week, which is scheduled for June 2021, will be successfully held. We, at the KFFIC, strengthen ties among our member CEOs by attending overseas renowned fairs and visiting main overseas associations and companies every year, but have not yet made any visits, which is most disappointing. Taking this opportunity, we would like to say that we are looking forward to seeing you, overseas relevant associations and those involved in the industry this year.
FAI
Most companies and individuals worldwide have adapted to virtual contact quite well. This is an essential system to be followed which will be used forward for a long time to come. Virtual events though will take time to kick off with low understanding of how to use them to our advantage yet companies have no choice but to adapt to this new phenomenon. We have no plans from the association to conduct such events in 2020 though will structure plans for 2021.
▍ 10. Is there also anything else you’d like to share with our readers? EF DA will cont inue to use videoconferences when the pandemic is over. Videoconferencing works very well – and saves money and time – when you need to exchange information or take decisions for the daily business. We hope, however, that it will be possible to hold face-to-face events in 2021 because we think personal contact is essential for a successful cooperation at a global level.
KFFIC
We wish you health and safety even amidst this outbreak of COVID-19 that is bringing unprecedentedly enormous shocks and impacts. We are expecting that the outbreak is going to be contained sometime in the middle of 2021. To everyone in the fastener industry! We hope that COVID-19 will be quickly contained and that we all can be vibrant again, smiling and seeing each other face-to-face again in every corner of the global market, as we were in the past. Thank you!
China Fastener World no.61/2021
EFDA
NEVIB
Like many people, we hope that this pandemic will be over as soon as possible. We regret the many victims it has caused all over the world.
093
Association
TFTA Chairman Josh Chen:
Cautiously Optimistic to the Modest Recovery of Taiwan’s Economy Since the outbreak of Covid-19 in the yearend of 2020 inflicting heavy losses to the global market, many industries have been suffering from their own “harsh winter,” such as factories being forced to lower, halt, or even fully stop production due to shrinking demand. Fortunately, with a few months of effort to contain the spread of the pandemic, many countries and regions have reported a significant more flattened curve on their pandemic chart, showing an increasing possibility of recovering industrial prosperity in the very near future. Taiwan, undoubtedly, is one that has been doing a very good job on pandemic control this time. Its undefeatable industrial supply chains not only keep running normally, but also are an indispensable support behind the global industrial supply chains.
▍ Orders Placed to Taiwan Fastener Industry are Gradually Back Again / The Promising Future May Not be Far Away Chairman of Taiwan Fastener Trading Association (TFTA), Mr. Josh Chen, is also holding a cautiously optimistic view on the current Taiwan fastener industry. He said, “2020 is definitely a year full of challenges and difficulties. On the one hand, fluctuations of exchange rates and national border conflicts led to several problems; on the other hand, the sudden outbreak of Covid-19 also brought the whole world’s economy into a long and dark time. In the period from about May through July 2020, Taiwan was indeed heavily influenced by dropping international demand. However, according to my observation , the order intake, production, and shipment of Taiwan fastener industry already appeared a sign of gradual growing momentum, and lead times and deliveries were running normal as well.” Although the pandemic seems to have reached its 2nd high peak in some countries in Europe and is still not under effective control, Chairman Chen said, “Since the beginning of last October, the order intake of Taiwanese fastener companies has appeared a sign of growth, which is opposite to the trend in other countries. Not only the number of orders is significantly increasing, but also the amount of orders is also showing an uptick. Originally, I thought that there might be a series of closedown in Taiwan fastener industry amid the pandemic, however, I haven’t seen any significant case thus far, which adequately proves that after several decades of development Taiwan fastener industry has accumulated quite a few solid bases for industrial development.”
TFTA
We have gradually felt the growth in order placements, as many of our overseas clients are running out of stock.
China Fastener World no.61/2021
▍ Foreign Clients are Running out of Stock and Their Demand for Replenishment is on the Rise Over the past few months many Taiwanese fastener suppliers faced problems like “being unable to ship products to clients as these clients required to suspend their orders due to the frozen demand from their downstream clients, or increasing pressure from their banks’ due dates to pay back loans due to their clients’ failure to make the payment in time. Chairman Chen said, “I could totally understand their situations, and I’m convinced that these situations won’t last too long. We have gradually felt the growth in order placements, as many of our overseas clients are running out of stock. On the other hand, as the service mode of the fastener industry is basically production by order, a transaction can not only be finished via email (i.e., the Internet), but can also be completed via an e-commerce platform, instead of face-to-face communication frequently adopted in other industries, which is perhaps one of the reasons that overseas orders are coming back at a fast pace.” Chairman Chen added, “Take the automotive fastener demand as example, although it slumped badly in the last few months, its influence was short. Plus, many overseas car manufacturers have gradually reactivated their production lines, so the demand is going to rebound. In terms of new car sales in Taiwan, the number of imported cars is even higher than that of domestically produced cars. Under such a trend, the so-called ‘retaliative’ growth should be very likely to appear soon.”
094
▍ Demand for Medical, DIY, and Sports Utilities Fasteners May Jump High In response to the demand amid the pandemic, the fastener demand from various industries is also increasing. For example, the demand for ventilators and protective face shields is greatly increasing, benefiting several manufacturers focusing their business on theses fields. On the other hand, Keeping social distancing and working from home also indirectly boost the growth in home improvement and DIY fastener demand. Chen added, “The pandemic did significantly boost the demand for medical and DIY fasteners. With everyone paying more attention to their health, fasteners for sports utilities and bicycles may be some of the suitable directions for our industry to focus on in the future.”
▍ Trying to Get Well-Prepared in the Crisis The current pandemic is still full of many uncertainties, making it difficult to forecast the future development of Taiwan fastener industry in 2021. However, Chen thinks, “Although it is difficult for us to forecast, the trend of an uptick and a rebound from the bottom should be positive if we view the recent performance of Taiwan fastener industry. I suggest that our friends from the industry should be well-prepared and take a faster move to improve their facilities and train their staff and be brave to take on any challenge and make a breakthrough. If no adverse external factor similar to Covid-19 will happen again, the performance of the industry 2021 may be better than 2020!”
▍ TFTA Can Help with Industrial Talent Training Technology and talent are both cornerstones for industrial development. In recent years, Taiwan fastener industry has been working really hard to improve its manufacturing technology and quality of products, making it recognized by overseas customers worldwide. However, there still exists a serious problem of the so-called talent gap. As a result, considering that talent cultivation is one of the issues Taiwan fastener industry is eager to reinforce, TFTA has also signed a collaboration memorandum with Taiwan’s Metal Industries Research and Development Centre (MIRDC) for strengthening the cultivation of the young generation of fastener talent. Chen concluded, “Under the collaboration between TFTA and MIRDC, we will give relevant practical courses on fastener manufacturing. The first course will only accept a few attendees in order to achieve effective learning results. We hope that through the assistance of TFTA, our members and Taiwan fastener industry can reinforce their personnel training and promote their industrial competitive edge.”
Association
Words from
HKSFC Chairman Cheung Kin Ming
When the Covid-19 was first discovered and some people were tested positive at the end of 2020, many people at that time were not fully aware of the fatality of the virus, and some countries even deemed it as flu, and therefore, only adopted simple countermeasures which would not immediately impact their economic growth, as they originally thought that this pandemic could be soon under control. Unfortunately, the contagion and fatality of this virus far exceeded our forecast and has spread to the whole world, which is still not under control. As China, Hong Kong, and Taiwan once suffered from the influence of SARS in 2003 and learned some experience, the governments and residents across the region were reacting to this pandemic and taking immediate sanitary measures against it faster and more carefully, thus causing less influence to the livelihood of the public. Most HKSFC members set up their own factories in mainland China, so they have to frequently travel between the mainland and Hong Kong for work or for their family. However, due to the pandemic, all land customs at the border between Hong Kong and the mainland (except for those at Shenzhen Bay and Hong Kong-Zhuhai-Macao Bridge) have been closed. People entering the mainland are also required to submit a “Covid-19 tested negative” report and are mandated to quarantine for 14 days, which results in a significant influence to most HKSFC members and other Kong Kong businesses. The pandemic also poses a big challenge to HKSFC, as all domestic and overseas meetings have to be virtual now. As a result, we cannot help but cancel or postpone all visiting plans, sessions, chairman inauguration, and domestic/overseas trade shows. Measures taken by the Chinese and Hong Kong governments to fight against the pandemic have also led to influence on the fastener and many other industries to a certain extent. The pandemic went into its most rampant period during Chinese new year holidays, when many employees in the mainland returned to their hometowns by car, train or plane for celebrating the new year, which also posed a big challenge to the pandemic control. As a result, local governments mandated businesses and factories in various industry sectors to implement immediate measures to contain the spread of the pandemic, including visitor registration, declaration, quarantine at medical centers, taking the temperature before entering offices, reducing daily workforce and working hours, restricting areas for dining, etc. Local officials would also carry out irregularly on-the-spot inspection. Factories were also doing whatever contracting the virus and ask employees to keep social distancing and personal hygiene.
HKSFC
People entering the mainland are also required to submit a “Covid-19 tested negative” report and are mandated to quarantine for 14 days, which result in a significant inf luence to most HKSFC members and other Kong Kong businesses. The pandemic also poses a big challenge to HKSFC, as all domestic and overseas meetings have to be virtual now. As a result, we cannot help but cancel or postpone all visiting plans, sessions, chairman inauguration, and domestic/overseas trade shows.
it could to prevent employees from
The above mentioned measures did actually cause a great influence on the material, capacity, workforce, and shipment arrangement of factories and their supply chains. The biggest influence was insufficient capacity that directly led to hiking material prices. On the other hand, the shipment time and efficiency of express and logistics service providers were also influenced. In certain areas where the influence of the pandemic was bigger, mail receiving and delivery service could not even be provided. From my recent interaction with HKSFC directors and members, I learned that most enterprises in our region also faced the same difficulty. However, some of them consider the difficulty an opportunity to further promote automated production and reduce the issue of low capacity due to insufficient workforce and save costs. Because of several economic issues caused by the pandemic, I think that the positive result still won’t be seen until only after a certain period of time.
At the beginning of this year, the demand for medical masks started to far exceed the supply, and many investors jumped into the medical mask industry, creating a new opportunity to suppliers providing fasteners to related mask machine manufacturers. As there will be still many variants in the development of the pandemic and the fastener industry will continue to face challenges, we thus have to make effort to avoid unnecessary expenses and improve our strengths in order to get well-prepared for the advent of future.
HKSFC would have been the host of the Four Regions Fastener Association Conference in 2020. Due to the
pandemic, this Conference was re-scheduled to take place in 2021. We hope that through the Conference we
can discuss face to face the future industrial development & advancement and share constructive opinions with each other. And, I personally hope that it will be soon realized and we can meet each other without wearing masks someday. I’d also like to thank Fastener World Magazine for its dedication to offering customers service and arousing the concern about the influence on the fastener industry and its future. I hope that we can get out of the dilemma as soon as possible, the pandemic can soon come to an end, and all walks of life can enjoy prosperity again in a foreseeable future.
095
China Fastener World no.61/2021
2020 is undoubtedly an extremely difficult year for most industries and our fastener industry also faced an unprecedented challenge. As an old saying goes, “A bad thing may be also a good thing, while a good thing may be also a bad thing.” One of these examples is the mask manufacturing industry that drew everyone’s attention overnight. Due to the outbreak of the pandemic worldwide, the demand for medical masks reached a new high in history. As most of these industries also require the use of fasteners, our fastener industry can also play a core role.
Technology Perhaps there is no industry that would experience such stormy development as cars. Thanks to Henry Ford, it has gradually shifted from manual to automated production. The automotive industry is today the most important industrial sector in many developed countries. Similarly, it is in Slovakia, which has dominated the world ranking for several years in the number of cars produced per 1,000 inhabitants. For this reason it was often named as the "Detroit of Europe".
"Detroit"
Fig. 1. Automakers in Slovakia
in the Heart of Europe
Prologue
by Jozef Dominik
Slovakia's attractiveness lies primarily in the strategic position in the heart of Europe (Fig. 1) at the crossroads of major transport routes between Krakow - Budapest and Berlin – Moscow, in addition to the relative sufficiency of skilled labor force and last but not least in a solid infrastructure, either road or rail. It is noteworthy that all Slovak carmakers are located in the northwestern part of the country, which is already starting to activate national labor migration. As can be seen from Fig. 2 approximately 44% of the total industrial production of Slovakia consists of the production of cars. Brands such as VW, Peugeot, Citroën, KIA have been established for a long time here and now Jaguar Land Rover. Overall, more than 10 6 cars are produced in Slovakia a year. There are plenty of reasons to pay adequate attention to this industry generally.
Automotive Production in Terms of Assembly
Fig. 2. Slovakian Industrial Production
The characteristic features of automotive production are: 1.
High series
2.
High degree of automation of production
3.
High demand for quality and safety
Considering that the dominant assembly technology of car manufacturing is welding and screwing and that one car contains as many as 2,000 different screws, nuts and other fasteners, then it is globally a gigantic consumption of fasteners that must meet the conditions of automatic assembly. In the next text, therefore, attention will be paid to the specificities of vehicle assembly in terms of the screw connections used.
Fig. 3. Robotic Arm
China Fastener World no.61/2021
As can be seen from Fig. 3, the mounting robot screws must have at least 3 freedom degrees. It is important to supply components that have to be properly oriented. The necessity of orientation has caused that wherever there is no need for a demountable joint, welding dominates automotive production. However, there are a number of cases where the screws are indispensable. For example, engine surroundings, gearboxes, chassis, brake systems, wheel attachments and many other construction nodes require detachable joints to service and maintain. According to VDI 2862 "Minimum restrictions for the application of fastening systems and tools in the automotive industry" there are three categories of screw connections in cars (Fig. 4). The most dangerous category is "A" because it is responsible for car accidents. This includes, for example, fastening wheels. It is the most critical operation, not from the manufacturer's point of view, but from the point of view of the user, because he is sometimes forced to do it himself, amateur in the field, without the use of the appropriate professional tools. Statistics show that wheel fastening bolts are most likely to loosen after 50 to 100 kilometers of ride from repeated assembly. In such cases, it is advisable to visit an authorized service center as soon as possible and have the tightening torque checked. Fig. 5 shows a cautionary example of the amateur mounting of the wheel bolt. The broken thread indicates that the bolt has been tightened with a tightening torque that is too high. The consequences are not hard to guess.
096
Fig. 4. Automotive Screw Types
Fig. 5. Autotmotive Bolt
Technology
Fig. 7. Deformation of Automotive Screws
Drivers mostly ignore it, but it is enough to see statistics of motor vehicle crashes as a result of loosened driving wheels. Loosened wheels threaten not only passengers of vehicles but also the unsuspecting surroundings. Dangers can also be caused by overloading the vehicle. Around 7.5% of trucks checked by VOSA (Vehicle Operators Services Agency) were found to be overloaded. Excessive load of one (Fig. 6) or both axles causes deformation of the screws (Fig. 7), to dislodge the mounting holes on the discs and gradually to disengage the nuts and, in the extreme case, also the driving wheels. This type of stress is defined as a rotating bending, and it is one of the most complicated and most dangerous combined stresses in elasticity and strength. The only effective measure is to strictly adhere to the load prescribed by the manufacturer and to ensure uniform loading. Often the weight of the crew, which may exceed the weight of the luggage in passenger cars, is often ignored.
Fig. 8. Impact of Surface Condition of Screws and Nuts
It should be remembered that even for incorrect assembly of wheels after their replacement or overloading the vehicle, the manufacturer is not responsible. Likewise, a garage can not be responsible for what it can not influence. However, driving schools should include at least a montage minimum in their syllabus, focusing in particular on wheel assemblies. The reason is simple - this is the most common operation that a driver must sometimes perform. Such training would, for example, help to learn about the importance of friction when tightening. It does not matter if an oiled or dry, new or rusty screw connection is tightened. Impact of surface condition of screws and nuts is well confirmed in Fig. 8. Therefore, it is important to entrust this work to a specialist workshop that not only controls the theory and practice of wheel assembly, but also has professional tools.
Summary In the world, the number of cars and the number of crashes are rising. As the statistics suggest, the causes of a crash are not just the non-compliance with traffic regulations, but the state of the vehicle is also important.
China Fastener World no.61/2021
Fig. 6. Excessive Load
097
Industry Focus
U.S. Fasteners Trade with Turkey by Sabrina Rodriguez An analysis on U.S fastener trade from Turkey. Has the U.S. increased their fastener imports from Turkey? How much does the U.S. export to Turkey? Which U.S. companies are leading in fastener trade with Turkey? Data note: The data for this article is derived from the US Census trade statistics. US Import and Export Census trade statistics is based on all modes of transportation. That value is calculated in USD by CIF (imports). In this article fasteners are defined as any product under HS Code 7318 (screws, bolts, nuts, coach screws, rivets, cotters, cotter pins, washers and similar articles or iron or steel), as well as the subcategories of 7318.
When considering the U.S.’s major trading partners the immediate assumption is China and Southeast Asia, but data shows many other countries are involved in fastener trade with the U.S. Amongst these countries is Turkey, an Asian country located on the Mediterranean Sea and bordering several middle eastern countries. In 2019, the U.S. imported a total of 21,569,175 USD worth of fasteners from Turkey, making it the U.S. 18th largest trading partner. Turkey accounted for a mere 0.37% of the total value of fasteners imported into the U.S. in 2019. Similiarly, the U.S. exports fasteners, and in 2019 the U.S. exported a total value of 30,408,604 USD, ranking Turkey as the 16th largest fastener buyer in the world and accounting for 0.69% of the total value of U.S. fastener exports. Even though Turkey is a relatively small trading partner for the U.S., many recognized companies are sourcing fasteners from Turkey. Amongst these U.S. companies importing the largest quantity of fasteners from Turkey are Norm Fasteners, Tesla Motors and Livingston International. Like many U.S. companies, the last several years have become tumultuous for sourcing commodities from China due to the trade wars and increased tariffs. It is possible that many of these U.S. companies were previously sourcing from China but had to procure suppliers in other countries where they would ultimately pay less tariffs. In Turkey, the top companies exporting fasteners to the U.S. are Norm Civata San Tic, Pergamon Status Di Tcaret and Taskazan Somun Civata.
U.S. Imports from Turkey U.S. fastener imports from Turkey have gone from a total of 10,778,560 USD in 2016 to 21,568,175 USD in 2019 and increased every year during that period. Amongst the subcategories that increased the most significantly during this period are 731815 and 731829. During the first 10 months of 2020, 731815 had already reached a total value of 12,688,092 USD by comparison to full year 2019 which had a total value of 10,442,701 USD. 731816 has been on a continuous rise since 2016, demonstrating the biggest increase in 2018 when the total value increased to 3,179,896 USD from 1,737,194 USD in 2017. Other subcategories of fasteners have decreased total value over the years and have proven to be more unstable than others. 731822, 731821 and 731824 have proven to be extremely unstable with total yearly values increasing and decreasing sporadically over the years. United States - Import 2016-2019
China Fastener World no.61/2021
Import Origin
2016 USD
%
Taiwan
1,512,763,809
31.62
2017 KG
%
USD
544,975,268
36.03
1,695,177,002
%
2018 KG
%
USD
32.80
572,892,820
37.05
1,935,363,130
% 32.10
2019 KG
%
USD
%
642,108,310
36.03
2,017,113,212
34.53
KG
%
647,320,640
39.50 31.54
China
1,089,267,219
22.77
552,585,092
36.53
1,229,973,800
23.80
577,920,267
37.37
1,630,859,894
27.05
703,375,316
39.46
1,207,846,153
20.68
516,843,311
Japan
645,603,874
13.50
136,998,245
9.06
648,194,818
12.55
96,792,773
6.26
644,506,115
10.69
101,606,714
5.71
648,298,263
11.10
100,429,867
6.13
Germany
304,531,405
6.37
37,775,762
2.50
297,601,078
5.76
34,902,355
2.26
344,921,221
5.73
32,657,036
1.84
381,542,652
6.54
46,957,565
2.87 4.49
Canada
263,340,402
5.51
58,970,087
3.90
277,584,037
5.38
66,367,145
4.30
313,533,514
5.21
76,422,263
4.29
315,553,400
5.41
73,544,433
S. Korea
220,695,373
4.62
45,536,620
3.01
188,722,047
3.66
42,404,509
2.75
198,057,295
3.29
45,024,072
2.53
197,953,133
3.39
43,288,996
2.65
Mexico
105,183,837
2.20
12,552,726
0.83
110,837,933
2.15
12,593,742
0.82
121,771,895
2.02
13,636,933
0.77
132,206,656
2.27
12,899,674
0.79
Italy
103,507,730
2.17
15,010,621
1.00
139,830,777
2.71
20,744,214
1.35
161,124,929
2.68
22,662,888
1.28
150,498,031
2.58
19,697,076
1.21
India
94,439,645
1.98
46,518,739
3.08
99,159,729
1.92
49,848,457
3.23
124,494,325
2.07
54,607,876
3.07
155,067,539
2.66
61,184,524
3.74
France
83,194,275
1.74
3,622,410
0.24
88,195,580
1.71
4,399,425
0.29
87,583,105
1.46
4,368,457
0.25
89,293,822
1.53
3,372,924
0.21
United Kingdom
63,050,998
1.32
3,148,364
0.21
65,177,138
1.27
3,830,219
0.25
81,459,330
1.36
4,099,660
0.23
89,547,877
1.54
5,784,994
0.36 1.86
Thailand
55,253,123
1.16
22,327,066
1.48
64,834,787
1.26
24,160,324
1.57
84,438,487
1.41
28,596,628
1.61
88,549,925
1.52
30,462,423
Switzerland
30,316,776
0.64
1,050,951
0.07
34,541,920
0.67
1,532,972
0.10
33,629,670
0.56
1,265,788
0.08
32,178,307
0.56
2,456,966
0.15
Spain
22,526,535
0.48
2,987,871
0.20
18,788,155
0.37
1,923,122
0.13
20,661,358
0.35
2,898,303
0.17
28,863,974
0.50
3,689,273
0.23 0.13
Sweden
17,418,991
0.37
1,359,095
0.09
19,773,650
0.39
1,722,760
0.12
23,747,818
0.40
2,329,453
0.14
27,416,741
0.47
2,007,121
Vietnam
16,366,298
0.35
7,741,855
0.52
25,133,552
0.49
10,430,327
0.68
31,008,738
0.52
22,914,488
1.29
67,618,847
1.16
34,435,183
2.11
Netherlands
11,920,220
0.25
1,349,725
0.09
13,289,395
0.26
1,905,159
0.13
13,059,102
0.22
937,895
0.06
14,493,796
0.25
1,505,760
0.10
Czech Republic
11,874,307
0.25
1,180,848
0.08
13,284,723
0.26
1,591,710
0.11
15,682,317
0.27
1,500,867
0.09
17,009,804
0.30
1,831,772
0.12
Liechtenstein
11,308,143
0.24
1,663,662
0.11
10,836,125
0.21
1,451,596
0.10
11,169,713
0.19
1,193,420
0.07
15,222,401
0.27
1,626,967
0.10
Norway
11,191,675
0.24
1,036,765
0.07
4,102,565
0.08
650,751
0.05
4,269,514
0.08
582,967
0.04
10,249,657
0.18
639,656
0.04
Turkey
10,778,560
0.23
883,127
0.06
12,573,307
0.25
1,066,591
0.07
18,237,064
0.31
2,119,310
0.12
21,568,175
0.37
2,891,546
0.18
Total
098
4,785,685,901 100.00 1,512,964,397 100.00 5,168,791,299 100.00 1,546,678,148 100.00 6,029,489,521 100.00 1,782,518,912 100.00 5,841,885,221 100.00 1,638,796,650 100.00
Industry Focus
As predicted, trade was impacted during the first 10 months of 2020 by COVID-19 and many subcategories of fastener imports from Turkey decreased significantly. However, the overall total of fastener imports increased by 17% during the first 10 months of 2020 by comparison to the first 10 months of 2019. Subcategory 731819 increased the most in 2020 by 48% when compared to 2019, followed by 731815 which increased by 45% in 2020. United States - Import from Turkey 2016-2019 731815 - Threaded screws and bolts others, with or without their nuts or washers, of iron or steel 731829 - Nonthreaded articles (fasteners) others, of iron or steel 731816 - Nuts, threaded, of iron or steel 731812 - Wood screws other than coach screws, threaded, of iron or steel 731822 - Washers, other than lock washers, of iron or steel 731821 - Spring washers and other lock washers, of iron or steel Product HS (6)
2016 %
USD
731815
3,759,890
KG
34.89
%
373,373
2017 %
USD
42.28
4,617,292
36.73
731824 - Cotters and cotter pins, of iron or steel 731819 - Threaded articles of iron or steel others 731814 - Self-tapping screws, threaded, of iron or steel 731823 - Rivets of iron or steel 731813 - Screw hooks and screw rings, threaded, of iron or steel
KG
%
508,343
2018 %
USD
47.67
7,687,741
42.16
KG
%
1,053,036
2019 %
USD
49.69
10,442,701
KG
48.42
%
1,869,252
64.65
731829
2,313,048
21.46
26,826
3.04
2,481,752
19.74
14,103
1.33
3,533,092
19.38
173,114
8.17
5,159,274
23.93
226,707
7.85
731816
1,351,654.00
12.55
61,811
7.00
1,737,194
13.82
105,728
9.92
3,179,896
17.44
481,684
22.73
3,811,528
17.68
628,066
21.73
731812
1,102,610.00
10.23
311,540
35.28
905,460
7.21
267,568
25.09
1,005,753
5.52
279,234
13.18
445,183
2.07
91,617
3.17
731822
980,093.00
9.10
47,441
5.38
676,355
5.38
32,035
3.01
578,912
3.18
27,460
1.30
721,974
3.35
47,113
1.63 0.31
731821
489,585.00
4.55
21,804
2.47
1,639,253
13.04
64,252
6.03
1,879,880
10.31
79,542
3.76
471,227
2.19
8,888
731824
451,288.00
4.19
1,311
0.15
200,494
1.60
13,385
1.26
120,385
0.67
14,945
0.71
82,603
0.39
3,447
0.12
731819
215,347.00
2.00
26,208
2.97
176,991
1.41
45,626
4.28
163,166
0.90
1,893
0.09
301,006
1.40
5,553
0.20
731814
95,630.00
0.89
12,742
1.45
111,397
0.89
15,086
1.42
76,787
0.43
7,775
0.37
120,421
0.56
10,467
0.37
731823
11,517.00
0.11
45
0.01
17,583
0.14
327
0.04
7,040
0.04
500
0.03
7,874
0.04
317
0.02
731813
7,898.00
0.08
26
0.01
9,536
0.08
138
0.02
4,412
0.03
127
0.01
4,384
0.03
119
0.01
Total
10,778,560.00 100.00
883,127 100.00
12,573,307 100.00
1,066,591 100.00
18,237,064 100.00
2,119,310 100.00
21,568,175 100.00
2,891,546 100.00
United States - Import 2019 vs 2020 USD
01/01/2019 - 10/31/2019 % KG
%
USD
01/01/2020 - 10/30/2020 % KG
%
USD
Volume Change % KG
%
Taiwan
1,730,195,612
34.67
554,900,849
39.60
1,549,273,217
36.93
504,814,561
40.88
(180,922,395)
-10.46
(50,086,288)
-9.03
China
1,045,570,878
20.95
445,675,146
31.80
754,898,482
18.00
350,130,294
28.36
(290,672,396)
-27.81
(95,544,852)
-21.44 -22.43
Japan
547,735,693
10.98
84,386,825
6.03
421,231,244
10.05
65,463,599
5.31
(126,504,449)
-23.10
(18,923,226)
Germany
322,444,156
6.47
39,691,640
2.84
290,569,969
6.93
35,366,467
2.87
(31,874,187)
-9.89
(4,325,173)
-10.90
Canada
270,597,626
5.43
63,316,565
4.52
217,952,379
5.20
45,153,937
3.66
(52,645,247)
-19.46
(18,162,628)
-28.69
S. Korea
167,068,005
3.35
35,832,214
2.56
148,087,118
3.53
53,111,234
4.31
(18,980,887)
-11.37
17,279,020
48.23
India
132,575,433
2.66
52,414,943
3.74
93,923,087
2.24
45,600,451
3.70
(38,652,346)
-29.16
(6,814,492)
-13.01 -17.77
Italy
127,165,643
2.55
16,707,893
1.20
116,687,040
2.79
13,739,581
1.12
(10,478,603)
-8.25
(2,968,312)
Mexico
113,047,338
2.27
10,881,127
0.78
95,578,556
2.28
11,396,506
0.93
(17,468,782)
-15.46
515,379
4.74
Thailand
75,336,981
1.51
25,846,628
1.85
67,571,140
1.62
24,116,886
1.96
(7,765,841)
-10.31
(1,729,742)
-6.70
United Kingdom
74,742,510
1.50
4,844,421
0.35
72,160,376
1.73
5,459,409
0.45
(2,582,134)
-3.46
614,988
12.70
France
74,155,091
1.49
2,953,452
0.22
61,362,846
1.47
2,084,472
0.17
(12,792,245)
-17.26
(868,980)
-29.43
Vietnam
58,150,750
1.17
29,450,398
2.11
62,471,349
1.49
34,342,589
2.79
4,320,599
7.43
4,892,191
16.62
Switzerland
27,404,433
0.55
1,244,475
0.09
24,477,945
0.59
1,055,806
0.09
(2,926,488)
-10.68
(188,669)
-15.17 16.62
Spain
24,689,590
0.50
3,190,973
0.23
28,120,639
0.68
3,721,231
0.31
3,431,049
13.90
530,258
Malaysia
20,443,167
0.41
7,179,147
0.52
15,337,311
0.37
7,150,375
0.58
(5,105,856)
-24.98
(28,772)
-0.41
Sweden
20,128,526
0.41
1,694,983
0.13
15,197,660
0.37
900,002
0.08
(4,930,866)
-24.50
(794,981)
-46.91
Turkey
18,584,902
0.38
2,478,835
0.18
21,883,079
0.53
3,167,036
0.26
3,298,177
17.75
688,201
27.77
4,990,864,166
100.00
1,401,592,330
100.00
4,195,245,847
100.00
1,234,883,070
100.00
(795,618,319)
-15.95
(166,709,260)
-11.90
Total
099
China Fastener World no.61/2021
Import Origin
Industry Focus United States - Import from Turkey 2019 vs 2020 731815 - Threaded screws and bolts others, with or without their nuts or washers, of iron or steel 731829 - Nonthreaded articles (fasteners) others, of iron or steel 731816 - Nuts, threaded, of iron or steel 731822 - Washers, other than lock washers, of iron or steel 731812 - Wood screws other than coach screws, threaded, of iron or steel 731821 - Spring washers and other lock washers, of iron or steel Product HS (6)
01/01/2019 - 10/31/2019 % KG
USD
%
731819 - Threaded articles of iron or steel others 731814 - Self-tapping screws, threaded, of iron or steel 731824 - Cotters and cotter pins, of iron or steel 731823 - Rivets of iron or steel 731813 - Screw hooks and screw rings, threaded, of iron or steel 01/01/2020 - 10/30/2020 % KG
USD
%
Volume Change % KG
USD
%
731815
8,733,021
46.99
1,580,176
63.75
12,688,092
57.99
2,240,659
70.75
3,955,071
45.29
660,483
41.80
731829
4,763,584
25.64
217,975
8.80
4,057,799
18.55
50,310
1.59
(705,785)
-14.82
(167,665)
-76.92
731816
3,183,189
17.13
521,647
21.05
3,921,586
17.93
835,380
26.38
738,397
23.20
313,733
60.15
731822
639,474
3.45
43,131
1.74
325,326
1.49
13,191
0.42
(314,148)
-49.13
(29,940)
-69.42
731812
445,183
2.40
91,617
3.70
0
0.00
0
0.00
(445,183)
-100.00
(91,617)
-100.00
731821
379,831
2.05
7,273
0.30
246,469
1.13
1,408
0.05
(133,362)
-35.12
(5,865)
-80.65
731819
266,030
1.44
5,324
0.22
394,660
1.81
5,583
0.18
128,630
48.36
259
4.87
731814
96,110
0.52
8,438
0.35
134,932
0.62
10,809
0.35
38,822
40.40
2,371
28.10
731824
66,222
0.36
2,818
0.12
62,361
0.29
2,470
0.08
(3,861)
-5.84
(348)
-12.35
731823
7,874
0.05
317
0.02
51,854
0.24
7,226
0.23
43,980
558.55
6,909
2,179.50
731813 Total
4,384
0.03
119
0.01
0
0.00
0
0.00
(4,384)
-100.00
(119)
-100.00
18,584,902
100.00
2,478,835
100.00
21,883,079
100.00
3,167,036
100.00
3,298,177
17.75
688,201
27.77
Most fastener imports have traditionally been imported through the predominant eastern seaboard ports and gulf ports. Amongst the top three importing fasteners into the U.S. during 2019 were the ports of Philadelphia, Dallas Fort-Worth and New York City. Imports into the port of Philadelphia decreased by 48% during the first 10 months of 2020 by comparison to the same time frame in 2019. Meanwhile, imports into Dallas Fort-Worth and New York City increased in 2020. Port of San Francisco increased their fastener imports from Turkey by 1.167% during the first 10 months of 2020, totaling a value of 2,926,158 USD compared to 43,738 USD in 2019. Port of Miami demonstrated a similar increase in 2020, going from 102,646 USD in 2019 to 2,479,959 USD in 2020. That increase of 2.316% proved to be the most significant in 2020.
U.S. Exports to Turkey United States - Export 2016-2019
China Fastener World no.61/2021
Export Destination
2016 USD
%
2017 KG
%
USD
%
2018 KG
%
USD
%
2019 KG
%
USD
%
KG
%
Mexico
1,314,654,296
32.25
203,863,541
28.04
1,412,953,785
32.74
222,665,666
28.46
1,499,699,725
34.49
231,263,430
29.89
1,528,570,326
34.77
218,810,790
28.27
Canada
1,005,906,068
24.68
408,775,729
56.23
1,048,308,919
24.29
441,917,998
56.49
1,115,481,725
25.66
428,795,685
55.41
1,142,383,822
25.99
456,623,732
59.00
Brazil
299,423,733
7.35
7,366,754
1.02
293,671,098
6.81
9,298,870
1.19
92,605,918
2.13
8,267,540
1.07
109,464,772
2.49
10,875,768
1.41
China
190,075,624
4.67
23,026,246
3.17
214,463,469
4.97
25,026,182
3.20
204,021,437
4.70
18,255,470
2.36
183,175,516
4.17
9,689,066
1.26
United Kingdom
163,622,895
4.02
10,139,488
1.40
164,221,037
3.81
10,389,620
1.33
168,552,437
3.88
9,778,718
1.27
160,267,016
3.65
7,519,342
0.98
Germany
117,867,815
2.90
8,241,516
1.14
121,337,992
2.82
8,199,628
1.05
116,394,757
2.68
8,073,587
1.05
123,712,184
2.82
8,101,157
1.05
France
111,789,548
2.75
3,187,001
0.44
107,454,702
2.49
2,357,514
0.31
103,682,248
2.39
2,747,118
0.36
89,890,788
2.05
2,293,625
0.30
Japan
83,231,548
2.05
3,921,081
0.54
76,326,006
1.77
3,411,218
0.44
91,433,597
2.11
3,122,248
0.41
98,481,641
2.24
3,307,978
0.43
Singapore
77,791,434
1.91
4,137,691
0.57
86,775,503
2.02
3,449,250
0.45
96,586,451
2.23
3,443,820
0.45
104,546,228
2.38
3,654,153
0.48
S. Korea
65,706,333
1.62
4,044,874
0.56
83,023,821
1.93
3,976,045
0.51
89,653,958
2.07
4,325,897
0.56
88,427,189
2.02
3,487,393
0.46
Australia
53,263,745
1.31
2,786,774
0.39
72,189,571
1.68
3,479,478
0.45
72,274,354
1.67
3,659,816
0.48
73,097,950
1.67
4,522,533
0.59
Netherlands
33,750,636
0.83
3,443,941
0.48
33,171,802
0.77
3,306,741
0.43
38,618,921
0.89
3,795,089
0.50
32,977,306
0.76
2,950,051
0.39
Italy
33,209,728
0.82
1,757,287
0.25
37,137,615
0.87
2,119,679
0.28
34,639,767
0.80
1,803,799
0.24
34,726,324
0.79
2,166,257
0.28
Spain
30,730,216
0.76
3,285,002
0.46
32,885,566
0.77
3,300,002
0.43
37,386,332
0.86
3,404,930
0.44
36,080,842
0.83
2,342,826
0.31
Thailand
23,321,083
0.58
3,200,664
0.45
23,171,450
0.54
3,634,594
0.47
22,883,037
0.53
3,655,844
0.48
24,874,744
0.57
3,372,673
0.44
United Arab Emirates
22,936,285
0.57
940,348
0.13
22,643,101
0.53
899,110
0.12
20,374,007
0.47
1,187,955
0.16
29,313,035
0.67
1,182,518
0.16 0.36
India
22,924,971
0.57
2,311,975
0.32
35,445,913
0.83
3,051,150
0.39
36,818,357
0.85
3,515,981
0.46
34,232,691
0.78
2,758,027
Poland
22,508,002
0.56
1,625,661
0.23
18,409,414
0.43
1,260,218
0.17
14,413,722
0.34
1,145,676
0.15
16,008,810
0.37
1,183,284
0.16
Saudi Arabia
21,778,212
0.54
3,460,850
0.48
15,524,574
0.36
818,903
0.11
19,903,451
0.46
798,031
0.11
14,742,262
0.34
495,880
0.07 0.32
Chile
21,298,239
0.53
1,499,717
0.21
23,841,660
0.56
1,577,473
0.21
39,048,715
0.90
2,153,134
0.28
28,638,189
0.66
2,475,660
Taiwan
21,065,784
0.52
1,258,158
0.18
22,086,685
0.52
972,397
0.13
24,694,832
0.57
1,306,861
0.17
25,915,750
0.59
1,003,335
0.13
Switzerland
18,570,800
0.46
406,269
0.06
19,966,956
0.47
498,147
0.07
17,683,950
0.41
419,670
0.06
18,504,669
0.43
390,800
0.06
Turkey
18,288,485
0.45
2,093,034
0.29
24,796,937
0.58
2,835,622
0.37
27,532,794
0.64
2,809,592
0.37
30,408,604
0.70
2,660,071
0.35
Total
100
4,076,555,511 100.00
727,053,375 100.00 4,316,300,639 100.00
782,429,289 100.00 4,348,457,743 100.00
773,885,156 100.00 4,396,938,196 100.00
774,017,702 100.00
Industry Focus United States - Export to Turkey 2016-2019 731815 - Threaded screws and bolts others, with or without their nuts or washers, of iron or steel 731816 - Nuts, threaded, of iron or steel 731829 - Nonthreaded articles (fasteners) others, of iron or steel 731819 - Threaded articles of iron or steel others 731823 - Rivets of iron or steel Product HS (6) 731815
USD 9,752,357
2016 % 53.33
KG 1,726,986
% 82.52
USD 12,964,678
2017 %
KG
52.29
2,352,834
731822 - Washers, other than lock washers, of iron or steel 731814 - Self-tapping screws, threaded, of iron or steel 731824 - Cotters and cotter pins, of iron or steel 731821 - Spring washers and other lock washers, of iron or steel 731811 - Coach screws, threaded, of iron or stee % 82.98
2018 %
USD
KG
13,416,277
48.73
2,083,327
2019 %
%
USD
74.16
14,239,990
46.83
KG 1,881,466
% 70.73
731816
3,141,935
17.18
71,575
3.42
5,064,509
20.43
151,214
5.34
6,218,007
22.59
203,514
7.25
7,247,132
23.84
64,219
2.42
731829
2,689,224
14.71
73,976
3.54
2,973,552
12.00
66,815
2.36
2,583,719
9.39
50,763
1.81
2,807,121
9.24
103,696
3.90 10.94
731819
744,419
4.08
25,689
1.23
1,873,899
7.56
108,268
3.82
2,165,339
7.87
275,312
9.80
2,813,748
9.26
290,907
731823
714,996
3.91
32,152
1.54
528,974
2.14
16,949
0.60
738,397
2.69
24,097
0.86
725,761
2.39
27,889
1.05
731822
450,819
2.47
52,545
2.52
615,254
2.49
69,306
2.45
1,431,658
5.20
89,020
3.17
1,915,487
6.30
231,757
8.72
731814
382,036
2.09
80,923
3.87
210,194
0.85
23,421
0.83
288,976
1.05
30,500
1.09
255,665
0.85
30,753
1.16
731824
237,749
1.30
20,497
0.98
371,244
1.50
34,224
1.21
489,910
1.78
44,759
1.60
272,218
0.90
25,608
0.97
731821
161,650
0.89
7,504
0.36
86,624
0.35
3,102
0.11
168,199
0.62
6,125
0.22
106,501
0.36
2,192
0.09
731811
13,300
0.08
1,187
0.06
83,533
0.34
7,458
0.27
5,383
0.02
750
0.03
15,613
0.06
1,169
0.05
Total
18,288,485 100.00
2,093,034 100.00
24,796,937 100.00
2,835,622 100.00
27,532,794 100.00
2,809,592 100.00
30,408,604 100.00
2,660,071 100.00
While the U.S. is not known to be one of the major global exporters of steel or fastener products, fastener exports to Turkey have increased over the years. In 2016, U.S. exports to Turkey totaled 18,288,485 USD and reached 30,408,604 USD in 2019. The total during the first 10 months of 2020 was 26,389,164 USD which was slightly lower than 2019, but 8% higher than the total in 2019 during the same period. Subcategories 731815, 731816, 731819 and 731822 all showed increases between 2016 and 2019, while subcategories 731823 and 731814 showed either decreases over the years or erratic changes over the years.
China Fastener World no.61/2021
During the first 10 months of 2020, the U.S. exported over 8% by comparison to that same period in 2019. 731816 increased by a total of 29%, 731829 by nearly 46% and 781821 by a staggering 362%. Most of the other subcategories of fasteners decreased in 2020, for example 731823 decreased by 46% and 731814 decreased by 77%.
101
Industry Focus United States - Export 2019 vs 2020 Export Destination
USD
01/01/2019 - 10/31/2019 % KG
01/01/2020 - 10/30/2020 % KG
%
USD
989,990,265
32.99
Volume Change % KG
%
USD
137,161,459
23.32
(313,899,122)
-24.08
(52,385,569)
%
Mexico
1,303,889,387
35.15
189,547,028
28.72
-27.64
Canada
972,560,013
26.22
388,286,791
58.84
776,131,334
25.86
383,613,338
65.22
(196,428,679)
-20.20
(4,673,453)
-1.21
China
152,910,121
4.13
7,978,643
1.21
148,601,869
4.96
9,761,856
1.66
(4,308,252)
-2.82
1,783,213
22.35
United Kingdom
132,819,716
3.59
6,400,537
0.97
108,633,220
3.62
4,498,303
0.77
(24,186,496)
-18.22
(1,902,234)
-29.72
Germany
101,169,387
2.73
6,833,655
1.04
84,643,470
2.83
4,540,697
0.78
(16,525,917)
-16.34
(2,292,958)
-33.56
Brazil
92,895,906
2.51
9,214,839
1.40
75,124,277
2.51
7,288,680
1.24
(17,771,629)
-19.14
(1,926,159)
-20.91
Singapore
87,562,739
2.37
3,002,876
0.46
62,992,171
2.10
2,037,981
0.35
(24,570,568)
-28.07
(964,895)
-32.14 -14.02
Japan
83,281,959
2.25
2,816,929
0.43
73,724,632
2.46
2,422,192
0.42
(9,557,327)
-11.48
(394,737)
France
73,385,052
1.98
1,919,787
0.30
69,962,188
2.34
1,674,269
0.29
(3,422,864)
-4.67
(245,518)
-12.79
S. Korea
71,947,317
1.94
2,883,128
0.44
63,736,301
2.13
2,573,542
0.44
(8,211,016)
-11.42
(309,586)
-10.74
Australia
61,070,839
1.65
3,710,117
0.57
53,894,184
1.80
2,527,825
0.43
(7,176,655)
-11.76
(1,182,292)
-31.87
Spain
30,873,533
0.84
2,009,032
0.31
14,707,085
0.50
1,253,654
0.22
(16,166,448)
-52.37
(755,378)
-37.60
India
29,280,818
0.79
2,417,999
0.37
21,953,313
0.74
1,778,315
0.31
(7,327,505)
-25.03
(639,684)
-26.46
Netherlands
27,902,134
0.76
2,553,591
0.39
24,165,484
0.81
1,980,746
0.34
(3,736,650)
-13.40
(572,845)
-22.44
Italy
27,370,398
0.74
1,621,850
0.25
26,122,871
0.88
1,365,177
0.24
(1,247,527)
-4.56
(256,673)
-15.83
Turkey
24,389,428
0.66
2,175,840
0.33
26,389,164
0.88
1,568,722
0.27
1,999,736
8.20
(607,118)
-27.91
3,709,534,962
100.00
660,009,601
100.00
3,001,409,198
100.00
588,200,745
100.00
(708,125,764)
-19.09
(71,808,856)
-10.88
Total
The U.S. ports that exported the highest quantity of fasteners to Turkey in 2019 were the ports of New York City and Norfolk, and in 2020 the quantities and values decreased significantly. The port of New York City decreased in value by 22% which was 2,165,774 USD and the port of Norfolk decreased by 35% which was 1,137,081 USD. Other ports such as port of Miami, port of Washington DC and port of Los Angeles also showed decreases in 2020. The port that showed the most significant increase in 2020 was the port of Houston Galveston which increased by 986%, or 4,889,458 USD. New Orleans had a similar increase in 2020 of 264%, or 261,165 USD. United States - Export to Turkey 2019 vs 2020 731815 - Threaded screws and bolts others, with or without their nuts or washers, of iron or steel 731816 - Nuts, threaded, of iron or steel 731829 - Nonthreaded articles (fasteners) others, of iron or steel 731819 - Threaded articles of iron or steel others 731822 - Washers, other than lock washers, of iron or steel 731823 - Rivets of iron or steel Product HS (6)
%
USD
01/01/2020 - 10/30/2020 % KG
%
USD
Volume Change % KG
%
731815
11,086,443
45.46
1,555,988
71.52
10,462,614
39.65
931,808
59.40
(623,829)
-5.63
(624,180)
731816
5,958,453
24.44
52,782
2.43
7,697,593
29.17
104,376
6.66
1,739,140
29.19
51,594
97.75
731829
2,430,692
9.97
79,758
3.67
3,547,314
13.45
74,456
4.75
1,116,622
45.94
(5,302)
-6.65
731819
2,313,358
9.49
241,243
11.09
2,439,442
9.25
280,746
17.90
126,084
5.46
39,503
16.38
731822
1,364,859
5.60
166,219
7.64
1,151,260
4.37
109,092
6.96
(213,599)
-15.65
(57,127)
-34.37 -43.27
-40.12
731823
626,221
2.57
24,457
1.13
333,340
1.27
13,876
0.89
(292,881)
-46.77
(10,581)
731824
258,656
1.07
24,566
1.13
270,087
1.03
26,025
1.66
11,431
4.42
1,459
5.94
731814
234,486
0.97
27,457
1.27
53,408
0.21
8,161
0.53
(181,078)
-77.23
(19,296)
-70.28
731821
91,279
0.38
1,786
0.09
422,427
1.61
19,346
1.24
331,148
362.79
17,560
983.21
731811
15,613
0.07
1,169
0.06
6,010
0.03
536
0.04
(9,603)
-61.51
(633)
-54.15
731813
9,368
0.04
415
0.02
0
0.00
0
0.00
(9,368)
-100.00
(415)
-100.00
24,389,428
100.00
2,175,840
100.00
26,389,164
100.00
1,568,722
100.00
1,999,736
8.20
(607,118)
-27.91
Total
China Fastener World no.61/2021
01/01/2019 - 10/31/2019 % KG
USD
731824 - Cotters and cotter pins, of iron or steel 731814 - Self-tapping screws, threaded, of iron or steel 731821 - Spring washers and other lock washers, of iron or steel 731811 - Coach screws, threaded, of iron or steel 731813 - Screw hooks and screw rings, threaded, of iron or steel
The Future for U.S. Fastener Trade with Turkey There has been a heavy focus on trade during the COVID-19 pandemic to understand the underlying impact on international trade. Unlike many countries exporting fasteners to the U.S., Turkey was amongst the few that increased their exports to the U.S. during 2020 by nearly 18%. During the first 10 months of 2020, the U.S. imported a total of 21,883,079 USD of fasteners by comparison to 18,584,902 USD during the same period in 2019. The U.S. reduced their fastener exports to the world by 19% during the first 10 months of 2020 when compared to the first 10 months of 2019. U.S. exports to Turkey increased from 24,389,428 USD in 2019 to 26,389,164 USD in 2020 accounting for an 8.2% increase. The pandemic may not be declared over for several more months, but trade has already started to normalize. The last two months of 2020 may prove to be some of the strongest in 2020 while companies continue to regulate their supply and demand.
102
China Fastener World no.61/2021
103
Exhibition
2021/06/2-4
第十二屆上海緊固件專業展 展會地點：國家會展中心NECC（上海市崧澤大道333號）
Fastener Expo Shanghai 2021
Venue: National Exhibition and Convention Center (Shanghai)
Fastener Expo Shanghai 2021, has been deeply rooted in the industry for 12 years, and has always been developing and expanding with the purpose of being professional, efficient, open and innovative. It can be called the benchmark event in the global fastener industry. The exhibition brings together well-known fastener manufacturers both at home and abroad, and also exhibits fastener supporting equipment, molds, wires and other products, providing a one-stop purchasing platform for fastener industry personnel. The organizer will continue to create an upgraded professional exhibition of fasteners in the spirit of " originality ", which is expected to reach a scale of 50,000 m2, attract more than 900 global fastener manufacturers and fastener production equipment manufacturers and invite more than 40,000 professional visitors. The organizer will also hold a series of wonderful concurrent conference activities, which is an annual high-end event that integrates trade, communication and learning. Fastener Expo Shanghai 2021 will dig in fastener end market and expand car and high strength fasteners, construction fastener, industrial machinery and other industries of high-end visitors. It is expected to grow 47% of high-end visitors in 2021, The organizer will use 11 years of experience industry accumulation in exhibition to create one-stop trading platform for fastener high-end buyers. With the adjustment and transformation of the industrial structure gaining momentum in China, China's fastener industry currently presents both opportunity as well as challenge. At the forefront of industry development, Fastener Expo Shanghai, Asia’s largest and the world’s most influential trade show in fastener industry, has not only been catering to emerging markets in China and abroad, but it has also been providing an excellent platform for fastener suppliers from around the globe to gain access to these regions.
2021第十二屆上海緊固件專業展（FES2021）將於2021年6月 2-4日在國家會展中心盛大舉行！ 主辦方將繼續以“匠心”精神打造一個升級版的緊固件專業 展，預計規模將達5萬平方米，吸引超過800家全球緊固件生產商 和緊固件生產設備商等展示亮相，深耕緊固件終端市場，大力拓 展“全國各地緊固件經銷商” 、 “汽車及高強度緊固件” 、 “建築緊 固件” 、 “工業機械”等行業的終端觀眾，並將邀請到逾4萬名專業 觀眾參觀。展會同期還將舉辦一系列精彩紛呈的會議活動，是一 個集商貿、交流和學習為一體的年度行業高端盛會！
China Fastener World no.61/2021
Exhibition scale
展會規模
Exhibitor: 800+ Professional visitors: 42,000+ Exhibition area: 50,000 m2
參展商：800+ 專業觀眾：42,000+ 展覽面積：50,000 平方米 ·30場同期會議活動 ·近40家國際採購商參與配對會
Exhibiting Product range
展品範圍
Fasteners supporting equipment: Fastener production equipment, fastener materials, fastener molds and consumables, testing instruments, packaging equipment, other related production technology and equipment, etc. Fastener product: Standard fastener, non-standard fastener, automobile and high strength fastener exhibition area, construction fastener exhibition area, stamping parts and lathe parts, fastener products of various professional application fields.
104
緊固件配套設備 緊固件生產設備、緊固件材料、緊固件用模具和耗品、檢測儀器、包裝設備、其 它相關生產技術和設備等。
緊固件成品 標準緊固件、非標緊固件、汽車及高強度緊固件展區、建築緊固件展區、衝壓 件和車床件、各專業應用領域緊固件產品等
現場會議活動 為更好地促進企業與觀眾之間的溝通互動，展會期間主辦方還精心策劃了30余 場精彩會議。更有1對1海外買家配對會及大型緊固件採購節等活動。
Industry Focus
Fastener Trade & Fluctuations of USA/Canada/Japan/Brazil/Taiwan 美•加•日•巴•台扣件貿易統計 (2018-2020) Import
進口
HS 7318 Iron and steel screws, bolts, nuts, washers, etc. 鋼鐵螺絲、螺栓、螺帽、墊片等
USA 美國 (in USD), in descending order according to figures of 2020 以美元計，依據2020 年數據排序
Rank 排名
Partner 進口來源
2018
2019
2020 (Jan-Sep) (一至九月)
0 1 2 3 4 5 6 7 8 9 10
World 全球 Taiwan 台灣 China 中國 Japan 日本 Germany 德國 Canada 加拿大 South Korea 南韓 Italy 義大利 Mexico 墨西哥 India 印度 UK 英國
5,710,903,737 1,827,122,542 1,517,433,573 620,400,669 329,436,542 307,849,389 188,758,025 152,763,573 119,731,124 115,225,246 79,612,854
5,545,540,394 1,901,629,533 1,124,027,707 624,435,819 367,603,496 310,630,890 188,277,555 145,214,555 130,515,686 145,329,726 87,094,634
3,553,505,487 1,301,838,586 630,550,611 360,403,538 254,643,908 189,306,256 122,651,037 100,494,391 84,278,321 76,548,401 62,713,840
Export 出口
資料來源; 美國商務部國貿署
Partner 出口目的地
2018
2019
2020 (Jan-Sep) (一至九月)
0 1 2 3 4 5 6 7 8 9 10
World 全球 Mexico 墨西哥 Canada 加拿大 China 中國 UK 英國 Germany 德國 Brazil 巴西 Japan 日本 France 法國 South Korea 南韓 Singapore 新加坡
4,350,304,358 1,493,137,231 1,125,426,323 204,299,063 168,528,149 116,187,696 92,608,574 91,411,619 103,674,764 89,653,958 96,608,045
4,400,456,907 1,526,828,779 1,149,112,882 183,107,846 160,019,660 123,777,529 109,485,174 98,567,349 89,869,700 88,443,922 104,484,712
2,663,576,114 866,061,953 690,561,084 130,789,949 99,545,840 76,435,491 66,280,798 64,667,625 59,042,331 58,000,486 57,612,589
Import 進口
Export 出口 China Fastener World no.61/2021
Source: U.S. ITA of Department of Commerce
Rank 排名
105
Industry Focus Import
進口
HS 7318 Screws, bolts, nuts, screw hooks, rivets, washers, cotter pins and like articles of iron or steel 鋼鐵螺絲、螺栓、螺帽、螺絲鉤、拉釘、墊片、開口銷等
Canada 加拿大
(in USD), in descending order according to figures of 2020 以美元計，依據2020 年數據排序
Rank 排名
Partner 進口來源
2018
2019
2020 (Jan-Nov) (一至十一月)
0 1 2 3 4 5 6 7 8 9 10
World 全球 USA 美國 Taiwan 台灣 China 中國 Japan 日本 Germany 德國 Vietnam 越南 Italy 義大利 South Korea 南韓 UK 英國 Canada 加拿大
1,643,449,509 806,637,915 248,265,336 216,092,146 66,634,869 40,885,116 28,804,118 31,115,913 32,343,265 25,535,080 28,490,404
1,659,950,408 840,229,876 235,429,210 213,211,415 73,457,919 41,398,721 24,645,725 32,440,110 28,137,853 24,759,482 22,343,425
1,268,100,251 614,732,526 188,855,271 173,147,924 59,387,052 30,030,625 28,166,351 22,791,953 20,806,823 17,758,588 14,472,165
2019
2020 (Jan-Nov) (一至十一月)
Export 出口
Source: Canada.ca
Rank 排名
Partner 出口目的地
0 1 2 3 4 5 6 7 8 9 10
World 全球 USA 美國 Mexico 墨西哥 China 中國 UK 英國 Poland 波蘭 Germany 德國 France 法國 Turkey 土耳其 Brazil 巴西 Australia 澳洲
2018 482,874,901 391,223,560 17,773,123 8,055,115 8,367,474 2,258,899 6,994,069 4,773,422 674,655 1,972,476 2,022,705
504,185,147 407,422,079 22,137,037 6,041,766 9,878,787 3,389,324 5,917,126 5,803,156 1,588,944 3,331,804 2,135,623
Import 進口
China Fastener World no.61/2021
Export 出口
106
392,609,783 318,560,068 15,861,762 8,345,472 6,055,452 4,647,809 4,290,833 3,781,652 2,372,306 2,224,796 2,035,602
Industry Focus Import
進口
Japan P.C. Code 61703 Nails, bolts, nuts, etc. 螺釘、螺栓、螺帽等
Japan 日本 in descending order according to volumes of 2020 依據2020年重量排序
Rank 排名
Partner 進口來源
0 1 2 3 4 5 6 7 8 9 10
World 全球 China 中國 Taiwan 台灣 S. Korea 南韓 Vietnam 越南 Thailand 泰國 Malaysia 馬來西亞 Germany 德國 USA 美國 Australia 澳洲 Indonesia 印尼
Metric Tons 公噸 2018 2019 2020 333,108 348,661 297,917 216,254 221,268 194,047 72,278 74,664 66,154 14,775 25,336 12,839 11,731 11,163 11,839 5,889 5,457 4,645 4,604 3,657 2,533 1,332 1,349 1,032 1,333 1,328 933 214 401 803 822 671 500
2018 120,589,782 48,469,169 28,407,337 5,789,484 3,387,791 3,627,621 1,973,062 3,024,923 17,586,698 190,370 747,327
1,000 Yens 千日圓 2019 2020 120,112,826 97,060,506 46,588,998 38,054,837 28,759,101 24,773,147 7,860,063 4,685,723 3,443,248 3,247,338 3,459,067 2,956,292 1,671,085 1,046,231 2,781,108 2,419,395 18,214,622 13,396,617 291,032 491,145 624,023 431,798
2018 333,255,619 78,634,130 74,276,199 44,383,274 25,334,111 13,144,879 11,765,238 8,008,615 7,427,164 5,332,815 5,130,880
1,000 Yens 千日圓 2019 2020 305,163,698 257,090,865 71,463,784 74,397,136 73,501,386 61,504,586 39,876,989 29,203,131 21,023,412 10,972,051 12,523,841 10,613,230 9,327,437 7,805,556 6,528,126 4,447,837 6,173,937 4,597,655 4,405,194 3,859,177 5,183,760 4,149,960
Source: Ministry of Finance, Japan 資料來源: 日本財務省
Rank 排名
Partner 出口目的地
0 1 2 3 4 5 6 7 8 9 10
World 全球 China 中國 USA 美國 Thailand 泰國 Indonesia 印尼 Mexico 墨西哥 India 印度 UK 英國 Brazil 巴西 Turkey 土耳其 Malaysia 馬來西亞
Metric Tons 公噸 2018 2019 2020 376,145 338,616 279,577 89,764 78,914 84,221 83,915 80,804 66,278 52,768 45,554 32,210 30,455 25,738 13,283 15,536 14,336 12,056 13,273 9,943 8,170 11,632 9,100 6,177 9,851 8,588 5,930 6,665 5,917 5,153 5,760 5,672 4,512
Import Volume 進口重量
Import Value 進口金額
Export Volume 出口重量
Export Value 出口金額
China Fastener World no.61/2021
Export 出口
107
Industry Focus Import
進口 HS 7318 Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel
Brazil 巴西 in descending order according to values of 2020 依據2020年金額排序
鋼鐵螺絲、螺栓、螺帽、馬車螺絲、螺絲鉤、拉釘、銷、開口銷、墊片(含彈簧墊片)和類似部件 2018 - US$ 2019 - US$ 2020 - US$ Rank Partner 2019 - Net 2020 - Net 2018 - Net Weight (KG) 淨重 Weight (KG) 淨重 Weight (KG) 淨重 FOB 美元 FOB 美元 FOB 美元 排名 進口來源 0 World 全球 123,292,034 114,959,546 96,393,965 648,742,258 590,527,630 474,232,850 1 China 中國 44,237,435 45,018,883 47,398,383 121,801,344 118,639,032 117,144,626 2 USA 美國 8,301,603 7,112,581 5,311,821 91,721,428 90,805,045 74,741,939 3 Japan 日本 11,969,245 12,567,987 6,439,826 76,353,804 70,152,664 50,589,453 4 Germany 德國 8,313,039 7,579,926 5,020,829 75,407,856 70,658,088 49,658,606 5 Taiwan 台灣 12,938,026 10,067,320 8,863,240 39,233,139 32,208,728 26,170,865 6 Italy 義大利 9,722,978 6,187,395 3,937,145 55,768,923 36,164,478 26,130,323 7 France 法國 4,021,996 3,222,984 1,776,499 36,707,910 33,315,010 21,120,192 8 S. Korea 南韓 5,015,276 5,420,189 3,613,568 25,387,542 26,505,450 16,778,777 9 India 印度 2,565,552 4,222,521 4,751,957 10,339,308 12,299,795 13,885,699 10 UK 英國 702,681 620,760 824,494 8,780,294 9,438,011 10,245,445
Export
China Fastener World no.61/2021
Rank 排名 0 1 2 3 4 5 6 7 8 9 10
108
出口
Partner 2019 - Net 2020 - Net 2018 - US$ 2019 - US$ 2020 - US$ 2018 - Net Weight (KG) 淨重 Weight (KG) 淨重 Weight (KG) 淨重 FOB 美元 出口目的地 FOB 美元 FOB 美元 World 全球 25,432,517 22,329,231 23,176,849 148,564,500 180,726,436 129,207,220 USA 美國 2,265,250 2,438,889 2,134,365 41,206,524 77,379,432 47,341,359 9,219,473 8,011,757 10,553,234 27,686,444 21,638,852 23,367,086 Argentina 阿根廷 3,997,950 4,212,001 11,703,049 9,222,881 9,174,626 Paraguay 巴拉圭 5,059,103 France 法國 1,014,741 644,262 462,338 8,194,419 7,715,397 6,053,469 Germany 德國 1,340,192 810,435 606,937 8,483,953 5,788,623 4,556,664 Mexico 墨西哥 594,482 637,662 383,559 5,368,961 6,420,788 4,145,272 Chile 智利 363,574 389,234 398,314 3,634,378 4,765,329 3,547,027 Uruguay 烏拉圭 1,151,947 937,654 1,163,475 3,194,424 2,619,460 2,754,061 30,644 3,446,003 4,805,382 2,716,998 UK 英國 65,874 118,278 Colombia 哥倫比亞 276,956 398,550 298,073 3,400,752 3,698,306 2,651,859
Import Volume 進口重量
Import Value 進口金額
Export Volume 出口重量
Export Value 出口金額
in descending order according to values of 2020
Taiwan 台灣
依據2020年金額排序
Industry Focus
Import
進口 HS 7318 Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel
鋼鐵螺絲、螺栓、螺帽、馬車螺絲、螺絲鉤、拉釘、銷、開口銷、墊片(包括彈簧墊片)等 Rank Partner 2018 (kg) 2019 (kg) 2020 (kg) Partner 2018 (USD) 2019 (USD) 2020 (USD) 排名 進口來源 公斤 公斤 公斤 進口來源 美元 美元 美元 World 全球 18,374,272 16,597,504 World 全球 152,356,212 159,937,426 157,680,579 0 1 Japan 日本 5,534,740 6,248,319 5,923,341 Japan 日本 65,320,339 66,179,082 61,494,765 2 China 中國 3,034,870 3,672,525 3,647,936 USA 美國 22,444,713 26,785,166 27,844,570 3 Vietnam 越南 2,492,054 3,170,962 2,312,366 China 中國 9,393,007 10,279,450 15,143,539 4 Philippines 菲律賓 1,176,520 1,167,517 517,069 Germany 德國 10,207,160 11,857,743 10,329,451 5 S. Korea 南韓 300,417 332,917 476,283 S. Korea 南韓 4,692,658 4,113,424 5,660,405 6 Germany 德國 377,593 399,763 413,784 Netherlands 荷蘭 3,004,484 3,392,145 4,058,735 7 Thailand 泰國 354,386 321,688 395,728 Vietnam 越南 4,013,572 4,580,616 3,719,309 8 USA 美國 302,901 351,534 389,272 Switzerland 瑞士 2,290,556 2,073,390 2,182,902 9 Turkey 土耳其 182,373 312,557 379,366 Sweden 瑞典 3,047,454 2,857,695 2,033,164 10 Netherlands 荷蘭 154,768 238,793 160,162 UK 英國 1296907 1582266 2017286
Export 出口
資料來源: 台灣國貿局
Import Volume 進口重量
Import Value 進口金額
Export Volume 出口重量
Export Value 出口金額
China Fastener World no.61/2021
Source: Bureau of Foreign Trade (Taiwan)
Rank Partner 2018 (kg) 2019 (kg) 2020 (kg) Partner 2018 (USD) 2019 (USD) 2020 (USD) 排名 出口目的地 公斤 公斤 公斤 出口目的國 美元 美元 美元 World 全球 1,595,705,450 1,479,292,223 1,363,248,785 World 全球 4,638,685,129 4,316,380,032 3,969,360,344 0 1 USA 美國 629,276,927 621,962,469 609,131,936 USA 美國 1,775,046,209 1,751,810,124 1,689,801,153 2 Germany 德國 155,300,468 132,505,809 116,637,180 Germany 德國 453,134,133 392,118,297 340,191,792 3 Netherlands 荷蘭 92,492,281 80,348,283 67,226,720 Japan 日本 230,517,250 241,272,905 209,498,781 4 Japan 日本 69,039,707 72,771,839 63,283,611 Netherlands 荷蘭 261,652,295 227,785,981 195,105,056 5 Canada 加拿大 60,651,391 51,295,923 45,368,429 UK 英國 178,355,595 171,259,001 136,840,671 6 UK 英國 59,378,375 55,620,928 41,692,178 China 中國 143,940,786 114,145,687 129,131,272 7 Poland 波蘭 34,104,044 31,645,985 27,418,561 Canada 加拿大 163,070,593 145,037,763 128,760,834 8 Italy 義大利 41,551,408 32,429,910 27,368,054 Sweden 瑞典 98,766,182 94,555,904 85,303,928 9 Sweden 瑞典 29,841,067 28,912,202 24,839,100 Mexico 墨西哥 94,925,177 97,384,603 77,878,026 10 China 中國 24,331,806 20,276,785 24,079,023 Italy 義大利 105,402,379 82,026,949 70,888,895
109
Industry Focus
U.S. Imports of Fasteners and the Auto Industry by Sabrina Rodriguez
Data note: The data for this article is derived from the US Census trade statistics. US Import and Export Census trade statistics is based on all modes of transportation. That value is calculated in USD by CIF (imports). In this article fasteners are defined as any product under HS Code 7318 (screws, bolts, nuts, coach screws, rivets, cotters, cotter pins, washers and similar articles of iron or steel), 7318110000 (coach screws, threaded, of iron or steel) and 7616101000 (aluminum, tacks and staples, not in 83.05).
An analysis on U.S imports of fasteners and the impacts on auto manufacturers. Has there been an increase in demand by U.S auto makers on certain lightweight fasteners? Have there been any significant trends in U.S imports of fasteners? Global trade took a dramatic turn earlier last year due to COVID 19. Every country around the world felt the impacts for months, and others continue to face the challenging aftermath. The U.S is a nation with one of the largest consumer markets and arguably one of the largest global importers. During the first half of 2020, the U.S. imported over one trillion dollars’ worth of goods, and that is considering the drop in imports due to COVID 19. One of the bigger U.S markets that continue to demand supply of parts is the auto industry, which continues to have large manufacturing and assembly plants in many parts of the Midwest. The U.S has not made any progressive steps towards massive public transportation (with the exception of a few metropolitan cities), and the Department of Transportation has not reached decisions on whether or not it will be investing in the manufacturing of Table 1. Import of 7318 in 2017-2019 high-speed trains. For these reasons, the 2017 2018 2019 Americans continue to make investments Import Origin General Total General Total General Total % % % in cars out of pure necessity. Value CIF (USD) Value CIF (USD) Value CIF (USD)
China Fastener World no.61/2021
U.S. Imports of Fasteners: Significant Trends on the Demand for Fasteners The demand for fasteners is seen across a multitude of industries, but one of the most prominent demands is from the automobile industry. Fastener imports of 7318 have remained very consistent over the few years, and the trends show many countries increasing their exports. China is one exception – trend analysis will show you how fastener imports dropped in 2019 due to the imposed tariffs on Chinese steel goods. Other countries such as Taiwan, Japan and Germany continue to be on the rise, increasing their yearly exports of fasteners to the U.S. During the first half of 2020 (Table 2), imports of 7318 dropped a total of 16.8% by comparison to the first half of 2019. Imports from China dropped by 30.3%, India by 33.3% and Canada by 24.4%. Imports from countries like Thailand, South Korea and Germany decreased, but at less staggering percentages.
110
Taiwan
1,695,177,002
32.80
1,935,363,130
32.10
2,017,113,212
China
1,229,973,800
23.80
1,630,859,894
27.05
1,207,846,153
34.53 20.68
Japan
648,194,818
12.55
644,506,115
10.69
648,298,263
11.10
Germany
297,601,078
5.76
344,921,221
5.73
381,542,652
6.54
Canada
277,584,037
5.38
313,533,514
5.21
315,553,400
5.41
South Korea
188,722,047
3.66
198,057,295
3.29
197,953,133
3.39
Italy
139,830,777
2.71
161,124,929
2.68
150,498,031
2.58
Mexico
110,837,933
2.15
121,771,895
2.02
132,206,656
2.27
India
99,159,729
1.92
124,494,325
2.07
155,067,539
2.66
88,195,580 5,168,791,299
1.71 100.00
87,583,105 6,029,489,521
1.46 100.00
89,293,822 5,841,885,221
1.53 100.00
France Total
Table 2. Import of 7318 in 2019H1 and 2020H1 Import Origin
2019 - H1 General Total Value CIF (USD)
%
2020 - H1 General Total Value CIF (USD)
%
Volume Change General Total % Value CIF (USD)
Taiwan
1,055,338,649
34.83
912,146,687
36.20
-143,191,962
China
649,858,422
21.45
452,473,142
17.96
-197,385,280
-13.57 -30.38
Japan
325,670,729
10.75
267,600,275
10.62
-58,070,454
-17.84
Germany
190,532,141
6.29
180,746,644
7.18
-9,785,497
-5.14
Canada
169,723,769
5.60
128,257,854
5.09
-41,465,915
-24.44
South Korea
98,379,148
3.25
91,755,761
3.65
-6,623,387
-6.74
India
78,792,238
2.60
52,546,697
2.09
-26,245,541
-33.31
Italy
78,084,788
2.58
68,748,155
2.73
-9,336,633
-11.96
Mexico
66,344,872
2.19
56,081,818
2.23
-10,263,054
-15.47
47,488,829 3,030,833,645
1.57 100.00
43,347,509 2,520,267,702
1.72 100.00
-4,141,320 -510,565,943
-8.73 -16.85
Thailand Total
Industry Focus
Another subset of fasteners categorized as 76161010 0 0 (Table 4) exper ienced similar decreases in imports to the U.S during the first half of 2020. During the first half of 2019, Greece was the 3rd largest exporter accounting for 11.8% of the total exports, but then dropped by 98.5% during the first half of 2020. China was the top exporter during the first half of 2019 and dropped by 28.1% during the first half of 2020. South Korea increased during the first half of 2020 by 49.8%, Germany by 54.3% and Taiwan by 15.1%. Overall, imports of these fasteners dropped by 25.4% during the first half of 2020.
The “Big Three” and Other Top U.S Auto Manufacturers Ford Motor rep or t e d a 33% sa les decrease in their second quarter of 2020, but then saw a sharp recovery during the third quarter. Similar to Ford, Chrysler reported its sales to have plummeted during the second qua r ter of 2020. Ch r ysler reported its sales to have dropped 39% during the second qua r ter of 2020 by comparison to the second quarter of 2019. Much like Ford, Chrysler is a U.S based automobile manufacturer and has become increasingly popular over the last few years because of the newly introduced Fiat. While General Motors also reported a significant decrease of 34% during the second half of 2020, it has proven to be more innovative i n t e ch nolog y t h a n t h ei r i m m e d ia t e competitors. GM is using 3D printing to prototype face shields and ventilators, but also expanding the use of 3D printing for auto parts and assembly tools. Toyota Motor North America began to see a decrease in their volumes of sales as early as March and reported a 36.9% decrease in March 2020 by comparison to March 2019. On the plus side, Toyota hybrid sales increased during the first quarter of 2020 by 58%. Hyundai and Honda also reported declines, especially during the second quarter of 2020 when U.S lockdowns went into full effect.
Table 3. Import of 7318110000 in 2019H1 and 2020H1 Import Origin
2019 - H1 General Total Value CIF (USD)
China
7,310,677
64.72
6,127,267
66.31
-1,183,410
Taiwan
2,147,155
19.01
1,924,189
20.83
-222,966
-10.39
556,842
4.93
44,940
0.49
-511,902
-91.93
Germany
%
2020 - H1 General Total Value CIF (USD)
%
Volume Change General Total % Value CIF (USD) -16.19
Thailand
540,386
4.79
984,861
10.66
444,475
82.26
Vietnam
384,039
3.40
0
0.00
-384,039
-100.00 -100.00
Czech Republic
120,000
1.07
0
0.00
-120,000
United Kingdom
110,809
0.99
13,553
0.15
-97,256
-87.77
South Korea
56,347
0.50
5,507
0.06
-50,840
-90.23
Sweden
30,216
0.27
0
0.00
-30,216
-100.00
Canada Total
12,416 11,296,744
0.11 100.00
21,464 9,241,329
0.24 100.00
9,048 -2,055,415
72.88 -18.20
Table 4. Import of 7616101000 in 2019H1 and 2020H1 Import Origin
2019 - H1 General Total Value CIF (USD)
China
312,057
23.58
224,209
22.73
-87,848
Taiwan
273,968
20.70
315,411
31.97
41,443
15.13
Greece
156,866
11.85
2,217
0.23
-154,649
-98.59 49.84
%
2020 - H1 General Total Value CIF (USD)
%
Volume Change General Total % Value CIF (USD) -28.16
South Korea
98,036
7.41
146,893
14.89
48,857
Canada
90,368
6.83
98,890
10.03
8,522
9.44
Malaysia
76,992
5.82
0
0.00
-76,992
-100.00
Bulgaria
65,972
4.99
0
0.00
-65,972
-100.00
United Kingdom
39,331
2.98
0
0.00
-39,331
-100.00
Colombia
32,294
2.44
0
0.00
-32,294
-100.00
Germany Total
28,626 1,323,821
2.17 100.00
44,183 986,673
4.48 100.00
15,557 -337,148
54.35 -25.47
The largest automobile manufacturers are entering the market of electric vehicles by introducing new and innovative models. One might even wonder if the automobile industry is in constant competition with Tesla which has singlehandedly disrupted the auto industry with its consistent innovations using renewable resources. Tesla’s most recent vehicle proves that an electric vehicle can not only feel like a luxury car, but also be extremely affordable. As of July 2020, Tesla’s Model 3 made up 14% of all electric vehicle sales. Volkswagen and BMW are also leading the electric vehicle industry, each accounting for about 6% of the total sales of electric vehicles in 2020. It is no surprise that hybrid and electric vehicle demand and production is beginning to ramp up, especially with the general population's interest in renewable resources and less frequent car maintenance. The U.S. is heading in that direction considering the looming consequences of climate change and individuals feeling accountable for making personal clean energy choices.
The Future of U.S. Imports of Fasteners and the Auto Industry Chinese imports of fasteners decreased by 30% during the first half of 2020, largely due to the impacts of COVID 19 and the demand for manufactured goods. The U.S. is entering what most would categorize as the second wave of Covid-19 which could imply a significant impact on the economy. With high unemployment rates and an overall unsteady economy, Americans are postponing frivolous purchases which include the investment of new cars. Renegotiations of Chinese tariffs could be one of the first items on the new president’s agenda, or we could see a continuation of the Chinese trade wars well into 2021. It is all very unpredictable, but one thing is certain: U.S automobile plants are continuing mass production and the demand for imported auto parts from foreign manufacturers continues.
111
China Fastener World no.61/2021
One of the subsets of fasteners well known in the auto industry is categorized as 7318110000 (Table 3). The U.S. saw a decrease of 18.2% during the first half of 2020 by comparison to the first half of 2019. Thailand increased its exports by 82.2% and Canada by 72.7%, meanwhile all other countries decreased their exports exponentially. Countries like China have decreased their expor ts by 16.1% and Germany by 91.9%.