Keeping up with the global industrial development trend and putting the spirit of ESG (Environmental, Social and Governance) into practice in its internal operation and management, Hisener Industrial Co., Ltd., a professional manufacturer of fasteners, has continued to expand its product supply portfolio while working hard for the sustainable development of the enterprise. In addition to the original production of wood screws and pre-packed items, the company is also actively expanding its product lineup, hoping to create a win-win niche market with its customers by adding more high value-added and cost-effective products to its supply capacity.
With this goal in mind, Hisener has also put “Stainless Steel Screws” and “Bi-metal Screws” as its key development projects in recent years, hoping to strive for more orders and market share as the market demand and attention for these two products continue to increase.
Workshop Expansion to Strengthen Stainless Steel and Bi-Metal Screws Production
Hisener's automated smart factory has been inaugurated since 2022. Considering the demand for stainless steel products from the original customer base, a dedicated workshop has been added in the factory to expand the production of stainless steel products, which can also satisfy the customers' desire for one-stop procurement.
Using high-quality 304/316/410 series of stainless steels in production, Hisener offers screws, bi-metal screws, threaded rods, bolts, nuts, washers, anchors, riggings & pins and solar photovoltaic bracket fittings, etc, among which stainless steel deck screws and stainless steel wood structural screws have obtained the CE and ETA 22/0584 construction-related certificates respectively. The bi-metal screws made of stainless steel and alloy steel, which were successfully developed in 2023, also show the maximum penetration of 12.5mm and strong pull-out resistance. The excellent performance of the bi-metal screws make them adopted by many customers from the building & home improvement, solar energy and mechanical equipment industry sectors.
In general, stainless steel products are required by purchasers to perform well in harsh climates and corrosive environments. “The test data of our products must be 100% compliant with the industry standards. Not only do we use salt spray and Kesternich testing equipment to test our products 24 hours a day, but we also rigorously inspect each batch to ensure that they meet the corrosion resistance requirements,” said Simon Liang, General Manager of Hisener.
Creating the Best Value for Customers with High Price/Performance Ratios
In addition to full-fledged processing technology, Hisener is also able to meet high quality performance and cost control, both of which are its major advantages. G. M. Liang, who often participates in international exhibitions to communicate with customers face to face, has a deep understanding of what customers really need. He believes that in this economic downturn, the best value is to provide customers with the most cost-effective products.
“Talent and capital are the key to design and R&D. In the future, we will invest more efforts in R&D and actively look for highquality talents to join our team in order to create quality products with better customer experience. We have never set a limit on the promotion and sales of our products. Wherever there is a demand, there is a Hisener team there. We believe that everyone needs good products with high price-performance ratios, Hisener will continue to do a good job in every product and provide better service for every customer,” said G.M. Liang.
Hisener contact: Simon Liang, General Manager
Email: simon@hisener.com
Copyright owned by Fastener World
Article by Gang Hao Chang, Vice Editor-in-Chief
Stainless Steel Products
Bi-Metal Screws
HAIYAN LONGWEI-
Flexible Automated Production & Non-standard Bolts/ Pipe Clamps/ Stamping Parts Manufacture
Langxi Longwei Metal Technology (former Haiyan Longwei Hardware Co., Ltd.) is mainly engaged in the production and export of carbon steel and stainless steel U bolts, eye bolts, hook bolts. foundation bolts, pipe clamps, customized stamping parts and hot forging bolts, which have been adopted by many customers in the field of industrial applications that attach great importance to the high strength and tensile performance.
With the expansion of its operation, Longwei relocated from Zhejiang to Anhui many years ago, where its larger, modern factory and the higher capacity it creates allow it to further meet customers' expectations for high-quality products. It also has Haiyan Longwei Import & Export Co., Ltd. which specializes in handling export business.
Adopting Materials f rom Major Manufacturers/ Self-owned Die Processing Center
High quality is one of the reasons that Longwei has gained a firm presence in the fastener industry for years. In addition to insisting on using qualified materials from leading manufacturers, Longwei also has its products manufactured in accordance with international standards such as GB, DIN, and ANSI, and its flexible production lines are also capable of processing according to customers' drawings. The 5,000 sq. m plant has an average production capacity of 280 tons per month. In addition, Longwei has continued to refine its production lines and equipment to enable its staff to more accurately ensure each product out of its factory to meet customer standards, including the establishment of a mold processing center, upgraded automation equipment and a patented eye bolts production line.
Longwei's products are widely used in the construction, shipbuilding, railroad and machinery sectors, where the strength and durability of fasteners are critical. “Our secondary processes, such as heat treatment, are carried out in accordance with international standards, and we are equipped with tensile strength and hardness testing machines for subsequent testing to ensure the quality of our products,” says Nicole Gu, Longwei Sales Manager. ”
Self-evident Strengths Make It Preferred by European Customers
Longwei has never relied on price-cutting to win orders, but rather chooses to prioritize the technology, service and quality customers value the most. As a result, Longwei has accumulated many loyal partners in several markets. A Swiss customer purchasing eye bolts from it once said: “We prefer collaborating with Longwei as its quality is much better, even though they don't offer the lowest prices.” These words show how much they appreciate Longwei’s efforts.
As much as 90% of Longwei's products are exported to Europe and the United States, as well as to Russia and other countries. In response to the growing demand from the global market, Longwei opened its Phase II factory 4 years ago, actively introducing automation equipment in the hope of increasing production capacity to serve more customers.
“In the future, we plan to expand our promotion and sales in emerging markets such as South America, in order to win more customers’ orders. In addition, the automation of our factories will also be a key project for us, and we look forward to another wave of improvement in our efficiency and product precision,” added Manager Gu.
CHINFAST: Pioneering Fastener Innovation and Global Market Expansion
Development History
Founded in 2005, CHINFAST boasts two wholly-owned factories, namely Joystart Automotive Parts (Zhejiang) Co., Ltd. and Haiyan Yousun Enterprise Co., Ltd., with an export volume of 8,000 containers in 2023. Deeply rooted in the fastener industry, CHINFAST has established business relationships with more than 500 enterprises worldwide. To further strengthen its connection with the demands of first-tier retailers and distributors in Europe and the United States, CHINFAST Co., Ltd., which has been specializing in industrial fastener production for nearly 20 years, has actively expanded its business over the past five years. It has extended its business from the original focus on the manufacturing of multi-purpose wood screws, timber screw and decking screws to DIY fastener packaging services, aiming to create a new milestone for the sustainable development of the enterprise in the ever-changing global market.
Product Highlights
The main products of CHINFAST are multi-purpose wood screws, trumpet head wood screws, and various window fastener series. Its patented pointed tail design offers superior speed performance compared to ordinary screws. Meeting the 1,200-hour salt spray requirement allows customers with anti-corrosion and rust-proof requirements to use them with greater peace of mind. CHINFAST is currently developing a product with a double-cut tail, which is in the trial production stage. The patented double-cut tail design elevates the product's performance
to a new level. This product combines the advantages of wood screws, self-tapping screws, and self-drilling screws, providing customers with a brand-new and efficient user experience.
Quality Control System
The ERP smart factory management system ensures the traceability of all products from production to packaging. CHINFAST is equipped with double first-class laboratories, and the production process strictly follows the ISO9001 system. With 15 QC personnel, each batch of products must undergo initial inspection, process inspection, warehousing inspection, packaging inspection and final inspection, with records kept online for each step to ensure traceability. The responsibility of CHINFAST's QC team is to prevent any defective products reaching customers. CHINFAST is equipped with advanced cold heading equipment imported from Taiwan, China, which has more stable performance. At the same time, the workshop is equipped with automatic high-rise warehouses, automatic packaging lines and AGV robots, which play an important role in the company's production and packaging of high-quality fasteners.
Overseas Market
Europe is one of the main markets of CHINFAST. In the future, CHINFAST will continue to develop deeply in Europe and expand into the South American and Australian markets. It is believed that with the expansion of these markets, CHINFAST's export volume will reach a new high.
Future Development
As the president of Jiaxing Fastener Import and Export Association, General Manager Yu Fengming has spared no effort to develop the fastener export business. CHINFAST is an enterprise with 20 years of experience in fastener exports, holding ETA and CE certifications, as well as SMETA and BSCI reports. The automated production and packaging standards of JOYSTART also provide a guarantee for CHINFAST to explore
emerging markets. At the same time, as a factory with an average antidumping tax rate in Europe, YOUSUN benefits a larger number of European customers. CHINFAST is familiar to the needs of various markets and can quickly and accurately meet customer requirements, providing customers with high-quality after-sales service. In addition, CHINFAST has an experienced DIY packaging team, which has unparalleled competitiveness in terms of both financial strength and product professionality.
Contact: Mr. George Yu
Email: george@chinfast.com
Article by Gang Hao Chang, Vice Editor-in-Chief of Fastener World
Copyright owned by Fastener World
Fasteners x EVs 2 Different Chess Games for China and Other Countries
社論：緊固件 x
Signs of a Polarized China Fastener Industry Emerge
China has the largest output of fasteners in the world, and its output is still rising annually. Prior to 2018, its annual output had exceeded 8 million tons, soaring to about 9.78 million tons in 2023. According to an analysis by an industry consultation institute in China, China's industrial fastener market value would be USD 20.7 billion in 2023 and will reach USD 22.1 billion in 2024, a growth of 6.7%. If this forecast comes true, the market expansion will drive the output to continue to grow in 2024 and possibly reach 10 million tons in the next five years.
The massive production momentum derives from the fact that many major Chinese fastener
companies have invested heavily in digital and smart manufacturing in recent years and adopted automated production lines. Large Chinese manufacturers with mass production capability and competitive prices can output tens of thousands of tons of fasteners a month, like pressing a fastforward button on production speed and output, significantly shortening lead time and achieving a high cost-performance ratio. However, behind the curtain of abundant capacity, a polarized industry revenue structure has emerged.
Publicly listed companies are the epitome of industry revenue performance. We can tell the signs from their latest financial reports. Let’s start with this conclusion — among Chinese listed fastener companies in H1 2024, the revenues of companies specializing in mid-to-high-end products hit double-digit growth, while the revenues of conventional companies specializing in low-end products obviously went down. The so-called mid-to-high-end products include fasteners with higher safety requirements for aerospace, EVs, rail transit, etc.; low-end products mainly include generic stainless steel fasteners and so on.
At one end of the scale are companies with good revenue performance. For example, Changhua Group which specializes in manufacturing auto parts and accessories saw revenue up 21% and net profit soaring 158% in H1 2024. Changhua has benefited from the rapid growth in production and sales of new energy vehicles and continues to invest in the construction of a production line with an annual output of 2 billion pieces of automotive high-strength fasteners. In addition, Essence Fastening specialized in manufacturing auto parts along with an aerospace riveting production line saw revenue grow by 42% and net profit by 73%. Qifeng Precision Industry Sci-Tech which is developing high-end products saw revenue grow by 6%. Ronnie Precision which is transitioning to and tapping into the new energy vehicle market saw revenue increase by 17%. China's imported high-value fasteners which are worth billions of US dollars will gradually be replaced by local Chinese fasteners. This will definitely be a future trend.
At the other end are companies facing revenue challenges, including Zhejiang Tong Ming, the leader in Chinese stainless steel fasteners, whose revenue fell by 16%, as well as Gem-Year Industrial, the leader in Chinese fasteners which fell by 16%. Shandong Tengda Fastener Technology which specializes in stainless steel fasteners saw its revenue decline by 6% and so on. A study reveals that China's stainless
steel prices have fluctuated greatly in the past two years. The prices of raw materials such as iron ore, nickel, and chromium have continued to decline. This has caused the price of stainless steel wire rods to drop significantly, and lowered the price of stainless steel fastener products, thereby impacting the revenue.
This polarized industry revenue structure reveals that China's fastener industry is at a crossroad of deciding whether to transition into high-end products. The leading giants are unquestionably growing larger. Even if they encounter a shortterm revenue impact, they have enough funds in their pockets to quickly carry out partial or full-on transformation. But what about those small and medium conventional enterprises that account for more than 80% of the total? Obviously, competition in China's low-end fastener market is already fierce, and profit margins are being squeezed. It is necessary to transition into mid-to-high-end products to earn more profits. However, various rising domestic costs in China, coupled with tariff challenges from foreign countries, as well as carbon taxes that will be levied in the future, undermine the capital of small and medium conventional enterprises, making the transition a far-fetched goal despite the enterprises’ high interests. This will continue to make the M-shaped revenue of Chinese fastener companies more serious. This is a wake-up call for China's fastener industry.
The Die is Cast for
EVs;
China’s Global Dominance in
EV Fasteners will Make a Hit in China
In 2023, China's EV sales reached 8.41 million units, up 36% year on year, accounting for 59% of global sales which were 14.18 million units. The International Energy Agency (IEA) estimates that sales will increase 25% year on year to 10.14 million units for the 12 months of 2024.
Chinese EVs are dominating the overseas market and outrunning the sales
of other overseas carmakers. This September, Reuters reported that Volkswagen was considering closing its factory in Germany for the first time in its history. Volkswagen said it had no choice but to adopt a more radical strategy. This news shocked Germany. Even some YouTubers put "Made-In-Germany Is DONE" and "A Wakeup Call" on their video titles. The South Korean press reported that the reason is the rise of China's EVs as well as the energy source disruption caused by the Russia-Ukraine war, which force Volkswagen to save expenditure.
Although China’s export of EVs declined for the first time in H1 2024 and now faces additional tariffs imposed by Europe, the U.S. and Canada, in September, the European press found that sales of Chinese major EV makers like BYD, Li Auto, and NIO increased significantly in August over the same period last year. Tesla's sales in China and the number of Tesla EVs exported from China also grew significantly. This phenomenon shows that China has dominated the global EV market and will drive the revenue growth of relevant supply chain players in China, among which EV fastener manufacturers are one of the beneficiaries.
Fastener World’s study found that the market for EVs priced below USD20,000 to USD30,000 are already in the grasp of China, leaving no chance of winning for other foreign car manufacturers. China's EV industry is still making frequent moves, continuing to connect a huge supply chain, and extending its production bases to Latin America and Southeast Asia (especially Thailand and Vietnam) using political ties with diplomatic countries and working with large consortiums.
China's EV supply chain is quite competitive, especially in battery production. Nikkei Asia pointed out that among the top 10 battery manufacturers in the world last year, Chinese companies accounted for 6, and about 80% of the cathode materials for battery core
components were produced in China. Chinese EV manufacturers have been able to keep costs down because the battery procurement network is concentrated in China.
As Chinese EV manufacturers gain success overseas, Chinese EV fastener manufacturers in the supply chain will have the opportunity to copy the success model and compete with competitors from Taiwan, Europe and the U.S. in the future. This is only a matter of time, so for overseas manufacturers outside China, the top priority is to think about how to play this chess game with China. Tariff sanctions could be a political act without real effects, but technology will always be the market’s definitive gamechanger, so manufacturers will eventually have to resort to independent R&D. China has used itself to make an example which proves that the new battery technology developed by China can dominate the world and change the market rules originally steered by Europe and the U.S. It is a triedand-true rule that mastering technology means dominating the world. Fastener companies in all countries should think about how to go back to the root of matters and use their own technology to create the next fastener manufacturing technology that changes market rules. Whether it is reducing carbon emissions, increasing production speed, reducing costs, etc., they may have an opportunity to pull out their ace that can compete with competitors.
Copyright owned by Fastener World / Article by Dean Tseng
News from Chinese Government and Fastener Associations
Compiled by Fastener World
Shanghai Fastener Industrial Association Convenes the 3rd Term of BoD Meeting
In order to strengthen the productivity of the industry, set up the work objectives of the board of directors and promote the operation of the association, Shanghai Fastener Industrial Association held the third term of board of directors meeting on September 27th in the meeting room of Shanghai Chun Zu Machinery, a professional manufacturer of cold forging machines, thread rolling machine, and relevant molds. Before the meeting started, the guests also took the opportunity to observe the operation and management of Shanghai Chun Zu's workshop, and General Manager of Shanghai Chun Zu gave a short corporate presentation.
The conference touched on many important issues in the industry, including the current state of the automotive industry, future development trends and the next step in the requirements for automotive fasteners, molds and dies, carbon neutrality, and so on. Representatives of important enterprises also exchanged and shared their views on the current market situation of the industry, encouraging them to be united and have confidence in the development of the industry.
Shanghai Fastener Industrial Association President Bian said: “The future work of the association will focus on strengthening the organizational structure, enhancing the service level, promoting the development of the industry, strengthening the network publicity, expanding external exchanges, and strengthening the technological innovation”. He also mentioned that he would actively seek support from all parties to create a good external environment for the development of the organization and to increase the visibility and influence of the association to ensure smooth implementation of the work plan.
Seminar for Fastener Enterprises Held in Yongnian, Handan
In order to listen to the opinions and suggestions of the enterprises on the development of the industry and the “Enclaves Economy” Industrial Park, a seminar for fastener enterprises was held in Yongnian, Handan on September 21st, which was attended by representatives of many local fastener enterprises.
Yongnian District Chief Ning Zhang said: “Yongnian HighEnd Fasteners & Enclave Economy Industrial Park is an important initiative of Handan City to break the geographical boundaries, promote the optimal allocation of resources and accelerate the high-quality development of the economy and society, and it is also a valuable opportunity for the transformation and upgrade of the fastener industry. We hope that the enterprises concerned will seize the opportunity, draw on collective wisdom and consensus, and work together to promote the transformation of Yongnian fastener industry into high-end, intelligent, and green development.” Chief Zhang also mentioned that the relevant departments must seriously listen to the views and suggestions of enterprises, think differently, and help enterprises solve problems and get out of the predicament together, and provide support for the development of enterprises.
Wenzhou Fastener Industry Association Held the Fifth Term of Membership Meeting
Wenzhou Fastener Industry Association’s Fifth Term of Membership Meeting was held on September 19th at ShangriLa Wenzhou Hotel, inviting many elites in the fastener industry to witness the prosperous development of Wenzhou fastener industry. Many excellent enterprises were also present to exhibit their products and technologies.
During the meeting, Wenzhou Fastener Industry Association President Ji, on behalf of the Board of Directors, made a report on the work of the Association, reviewing with the members the efforts and achievements made by the Association in the past year in the promotion of industrial upgrade, strengthening industry self-discipline and protecting the rights and interests of members, etc. At the same time, he also made a report on the annual work plan for the next year. He said, “We will continue to deepen the services of the Association and promote the high quality development of the industry”.
Wenzhou Fastener Industry Association even signed a financial credit agreement with a local bank in the presence of its members, hoping to inject a strong impetus to the development of the industry. The efforts made by the Association in the past few years in promoting the industry's technological innovation, market development, social contribution, etc., were also highly praised by the Chairman of China General Machine Components Industry Association (CMCA), President of CMCA Fastener Subdivision, and other members on-site.
Jiangsu Fastener Association's "Fastener College" Holds First Management Training Course
Jiangsu Fastener Association (JSFA)'s "Fastener College" held its first training course on September 23rd in the conference room of Dainan Fastener Industrial Park. The first course was based on the theme of talent selection and appointment, and the inauguration ceremony was also held at the same time, which was attended by Jiangsu Fastener Association President Jiang and Executive Secretary General Hsu. Fastener College is a training and learning exchange platform built by Jiangsu Fastener Association in cooperation with an external organization to provide free management training courses for the Association's members. In his speech, Persident Jiang encouraged the members to enhance their learning, learn from theories, and actively communicate and explore with each other. He also mentioned that the Association will continue to provide members with quality services to help each other learn and exchange, and hoped that members would actively participate in the Association's activities and put forward more suggestions in the future.
Jiangsu Fastener Association and Suzhou Fastener Association Visit Dainan Fastener Industry Association
On Aug. 21st, Jiangsu Fastener Association and Suzhou Fastener Association paid a special visit to Dainan Fastener Industry Association located in Xinghua City, hoping to give full play to the association's advantages to strengthen the development of the fastener industry on one hand, and further promote the integration of resources, cohesion and future cooperation and development of the association through the communication, understanding and interaction amongst the associations on the other hand.
As the fastener industry is increasingly concerned about issues such as green and sustainable development, the attending association representatives also visited the Cleaning Center in Dainan Industrial Park. The Center basically helps enterprises in Dainan and the surrounding areas to reduce the pollution to the environment and water source from the root, and on the other hand, it can optimize the production, reduce energy consumption & carbon emissions, so as to realize the goal of green production.
After the visit, the tripartite associations also held an exchange forum, where representatives of the associations and member enterprises took turns to give a briefing on the current development of the associations or enterprises, as well as their own development advantages and products, in the hope that the rare tripartite exchanges
could strengthen mutual communication, open up opportunities for cooperation, establish smooth communication channels, and achieve the goal of resource sharing and mutual benefit.
Dainan Fastener Industry Association
President Chiu said: “The future development of Dainan fastener industry should continue to follow the line of specialization, refinement, characterization and innovation. We will increase our efforts in the R&D and applications of special materials, improve quality, develop new products, and invest more in intelligent production and digital management. In the face of increasingly diversified market demand, fastener companies have turned to market segmentation and customized services. Through in-depth understanding of different industries, different applications based on specific needs, enterprises can provide more accurate and professional fastener solutions. Fastener enterprises should also actively seek international cooperation, through participation in international exhibitions, the establishment of cross-border cooperation, etc., to open up markets and enhance the brand's international influence. At the same time, they should promote their own technological innovation and management upgrade, so as to lay a solid foundation for the long-term development of enterprises.”
Suzhou Fastener Intelligent Manufacturing Chamber of Commerce Holds 1st Term of Members Meeting
Suzhou Fastener Intelligent Manufacturing Chamber of Commerce (SFIMCC) held its first term of members meeting with the theme of “Fastening Suzhou & Connecting the World with Intelligence” on August 3rd at Hotel Nikko Suzhou. During the meeting, a number of association executives, business representatives and industry professionals were invited to hold a roundtable discussion on the current state of the industry and its future prospects from the perspectives of market, technology, equipment, politics, science and technology and innovation, etc.
During the members meeting, President Yu of SFIMCC also took the stage to brief the members on the work of SFICC, President Yu mentioned: “SFIMCC has to continuously improve its service capability and provide member enterprises with services such as policy consultation, market information, technical support, etc., to help them solve practical problems and facilitate their healthy development.”
During the meeting, President Yu also signed strategic cooperation agreements with several fastener industry associations and banks to work together towards the goal of pursuing greater business value and development opportunities. President of CMCA Fastener Subdivision, President of Shenzhen Fastener Industry Association and important officials of Suzhou City also delivered speeches, encouraging to strengthen the cohesion, common development and create a better future together!
CMCA Fastener Subdivision Visits Zhejiang Institute of Advanced Materials for Exchange
CMCA Fastener Subdivision, led by President Kang-Sheng Xue and other important reps, visited Zhejiang Institute of Advanced Materials on July 8 to have a discussion and exchange views on the current status and future development of the fastener industry, which was the first all-round exchange after the signing of the strategic cooperation between the two parties in May this year.
President Xue said: “The current market environment, industry volatility and overcapacity are not only challenges but also opportunities for the fastener industry, which has experienced rapid development for more than 40 years. The cooperation between the two parties is expected to promote productivity and have a positive impact on the development of the fastener industry in China.”
President Dong of Zhejiang Institute of Advanced Materials said: “We will actively integrate into the trend of the new round of technological and industrial changes, actively cooperate with the Fastener Association, and utilize our advantages and resources to further promote the high-quality development of the fastener industry.”
Jiangsu Machinery Industry Association Convenes Permanent Directors Meeting
Jiangsu Machinery Industry Association Fastener Subdivision Permanent Directors Meeting was held on June 29th in Changshu. Nearly 50 leaders and guests, including Dainan Fastener Industry Association, Dongtai Fastener Industry Association, and Suzhou Fastener Industry Association, attended the meeting.
In addition to the summary report on the work of the Association in the first half of 2024, industry experts were also invited to deliver keynote speeches on the management and common problems of the current state of the fastener enterprises and share the key points of governance in the hope that it can provide more inspiration for the future strategic thinking of the fastener enterprises. In addition to promoting the learning and exchange among associations, the conference also created more cooperation opportunities for all parties.
China General Machine Components Industry Association Organizes a Delegation to Visit a Smart Factory
On June 23rd, representatives from Ningbo Fastener Industry Association, China General Machine Components Industry Association and several fastener industry associations visited a Zhoushan-based smart factory. They visited the production lines and watched the management of the factory under the warm welcome of the representatives of the factory.
Following the development orientation and requirements for “high-end, intelligent, green, lean and people-oriented”, the plant takes the lead in applying new equipment, new production lines, new systems and newgeneration information technologies such as artificial intelligence, Big Data, Internet of Things (IoT) and 5G to realize the digitization of the whole process, and provides an experience model and a successful path for the high-end fastener industry. Through the visit, the guests were all impressed by the factory's commitment and efforts to carry out technological innovation from a forwardlooking perspective, solve industry problems and set up industry benchmarks.
In the fastener manufacturer category, a total of 21 companies have entered the top 2,000 rankings. This is two companies fewer than the 23 companies revealed by Commonwealth Magazine last time. Easylink Industrial entered the list for the first time previously and continues to be included this time.
In 2023, 9 companies with their revenue ranking moving up are marked with a red arrow. Compared with 17 entrants that moved up in 2022, the number of entrants for 2023 dropped by nearly half. In 2023, there were as many as 18 companies on the list with declining revenue, and the average revenue growth rate of all 21 companies on the list was minus 14.6%; the average profit margin was 8.25%. This reflects that Taiwan's fastener revenue leaders saw a sharp increase in orders in 2022 and a sharp drop in 2023, but maintained positive profit margin growth in 2023.
INDUSTRY FOCUS
In terms of revenue scale, the top three were Ta Chen International, Tong Ming Enterprise and QST International. The combined revenue of the three companies alone accounted for 68% of the total revenue (NTD 184.888 billion) of all 21 entrants. Among them, the revenue of Ta Chen International is seven to eight times higher than that of Tong Ming Enterprise and QST International.
In 2023, the top three entrants with the highest total assets were Ta Chen International, Jinn Her Enterprise, and QST International.
Fastener Traders
In the fastener trader category, only Brighton-Best International is on the list. This is one company fewer compared with the previous ranking. Brighton-Best International's revenue fell 6% to NTD 24.627 billion. Profit margin dropped to 12% from 17% recorded in 2022, but still maintained a double-digit growth momentum.
Fastener-related Material & Equipment Manufacturers
In the machine and equipment category, there were Chun Zu Machinery, as well as the new entrant Jern Yao Enterprises. Jern Yao Enterprises’ revenue grew 1.09%, and it is worth noting this company’s two-digit growth in profit margin. Although Chun Zu Machinery’s revenue fell by 7%, its still moved up the rank. In the raw material category, the revenues of all entrants on the list fell by double digits, with an average decline of 20%. It shows that orders received by Taiwanese fastener-related raw material manufacturers in 2023 were also greatly impacted.
Hand Tool Manufacturers
In the hand tool category, Stanley Chiro International's revenue fell by double digits, while Mobiletron’s grew by double digits. The former's revenue decreased from NTD 5.584 billion in 2022 to NTD 4.266 billion. The latter increased from NTD 3.36 billion to NTD 4.004 billion. In terms of capital, Stanley Chiro International's scale reached the NTD 10 billion mark. (New Entrant)
Fastener Companies in China
In the category of fastener manufacturers, a total of 5 companies are ranked in the top 2,000. This is 3 companies fewer, compared with 8 companies listed last time by Commercial Times. Zhejiang Tong Ming and Gem-Year Industrial continue to remain the top two Taiwanese fastener companies in China. Suzhou New Best Wire Tech jumps from the sixth largest in 2023 to the third largest this year.
The 2024 ranking list is missing three entrants because two companies affiliated to Gem-Year which were newly added to the list last year, including Gem-Safe which is engaged in fastener sales, and Gem Duo which is engaged in the production and sales of hardware products and fasteners, do not remain on the list this year. Hama Naka Motogawa Metal Product (Kunshan), which is engaged in the production and sales of fasteners and is a subsidiary of Hama Naka Shoukin Industry, had been on the list from 2021 to 2023 but has discontinued to be on the list this year. In addition, Xiamen Boltec, a subsidiary of QST International, was newly added to the list last year, but has discontinued to be on the list this year. However, a new company has appeared in the 2024
Huanghua Jujin Hardware Products, a subsidiary of Tycoons Group Enterprise which produces and sells high-strength bolts and spheroidized wires.
In 2024, 4 entrants with increased revenue are marked with an upward red arrow. Excluding the new entrant, almost all entrants have moved up the ranking. As a comparison, last year, all entrants moved down the ranking, and most of them had negative revenue growth, with only a few having positive growth of about 3%.
Despite moving up the ranking, judging from their revenues, 4 of the 5 entrants on the 2024 list have a double-digit decline in revenue. Only Huanghua Jujin Hardware Products has increased by two digits. This shows that in recent years most of the leading Taiwanese fastener companies in China have faced huge challenges brought about by market environment factors such as the global geopolitical turmoil and declining economic performance in China.
Judging from the revenue scale in 2024, the combined revenue of the top two entrants alone accounts for 77% of the sum of all five entrants (RMB 5.501 billion). Among them, the revenue gap between the top entrants is RMB 343 million, compared with the RMB 404 million gap in 2023, which means that the gap between the top two entrants has narrowed and this is worth monitoring and tracking.
Source: Commercial Times, August 2024 Issue, Top 1000 Taiwanese Enterprises in China In desending order of
Financial Reports of Fastener Companies
Updated on September 6, 2024; Monetary unit in millions, except for EPS
Amatei's 2024 revenue was JPY 5,533 million, up 0.9% from JPY 5,485 million in 2023. The company ended the fiscal year with JPY 133 million in net profit in 2024, up 67.6% from JPY 79 million in 2023. Total assets decreased to JPY 5,357 million in 2024 from JPY 5,595 million in 2023. The company forecasts 2025 revenue at JPY 5,700 million, up 3.0%.
KFC's 2024 revenue was JPY 25,070 million, up 10.8% from JPY 22,628 million in 2023. The company ended the fiscal year with JPY 1,177 million in net profit in 2024, up 11.8% from JPY 1,052 million in 2023. Total assets increased to JPY 29,618 million in 2024 from JPY 26,191 million in 2023. The company forecasts 2025 revenue at JPY 26,000 million, up 3.7%.
Nifco's 2024 revenue was JPY 371,639 million, up 15.5% from JPY 321,771 million in 2023. The company ended the fiscal year with JPY 18,252 million in net profit in 2024, down 13.8% from JPY 21,170 million in 2023. Total assets increased to JPY 380,405 million in 2024 from JPY 359,150 million in 2023. The company forecasts 2025 revenue at JPY 340,000 million, down 8.5%.
Kyowa's 2024 revenue was JPY 10,972 million, down 17.0% from JPY 13,213 million in 2023. The company ended the fiscal year with JPY 1,443 million in net profit in 2024, up 32.1% from JPY 1,092 million in 2023. Total assets increased to JPY 17,903 million in 2024 from JPY 17,139 million in 2023. The company forecasts 2025 revenue at JPY 10,200 million, down 7.0%.
Amatei
Mitsuchi's 2024 revenue was JPY 13,147 million, up 4.7% from JPY 12,555 million in 2023. The company ended the fiscal year with JPY 419 million in net profit in 2024, compared to a loss of JPY 32 million in 2023. Total assets decreased to JPY 16,450 million in 2024 from JPY 16,683 million in 2023. The company forecasts 2025 revenue at JPY 13,872 million, up 5.5%.
South Korea
KPF's 2023 revenue was KRW 809,653 million, down 1.1% from KRW 819,026 million in 2022. The company’s operating income was KRW 47,253 million in 2023, up 19.3% from KRW 39,594 million in 2022. Total assets decreased to KRW 653,168 million in 2023 from KRW 665,785 million in 2022.
India
(NR)
Sundram Fasteners' 2024 revenue was INR 49,530 million, up 3.9% from INR 49,510 million in 2023. The company ended the fiscal year with INR 4,800 million in net profit in 2024, up 3.4% from INR 4,640 million in 2023. Total assets increased to INR 15,450 million in 2024 from INR 14,240 million in 2023.
Sterling Tools' 2024 revenue was INR 6,136 million, up 1.6% from INR 6,035 million in 2023. The company ended the fiscal year with INR 388 million in net profit in 2024, down 6.2% from INR 414 million in 2023. Total assets increased to INR 6,163 million in 2024 from INR 6,088 million in 2023.
Mohindra Fasteners' 2024 revenue was INR 1,809 million, up 2.8% from INR 1,759 million in 2023. The company ended the fiscal year with INR 155 million in net profit in 2024, up 3.3% from INR 150 million in 2023. Total assets increased to INR 1,767 million in 2024 from INR 1,684 million in 2023.
Malaysia
Chin Well Holdings' 2024 revenue was MYR 343 million, down 24.7% from MYR 456 million in 2023. The company ended the fiscal year with MYR 9 million in net profit in 2024, down 76.3% from INR 38 million in 2023. Total assets decreased to MYR 740 million in 2024 from MYR 753 million in 2023.
Compiled by Fastener World
(MYR)
Mohindra Fasteners
Fastener Business Opportunities in UAE
阿聯酋扣件市場商機剖析
INTRODUCTION
The United Arab Emirates (UAE), with a population of approximately 10 million, showcases a robust economic profile. The country's GDP (measured at Purchasing Power Parity) stood at a significant US$835.1 billion, reflecting a 7.9% growth in 2023, and a five-year average growth rate of 1.9%. The GDP per capita was an impressive US$84,657, underscoring the nation's economic prosperity. Unemployment in the UAE was relatively low, at 3.4%, indicating a healthy job market. However, the inflation rate, measured by the Consumer Price Index (CPI), was 4.8%, presenting some economic challenges. Foreign Direct Investment (FDI) inflow into the UAE totaled US$22.7 billion, showcasing the country's attractiveness to international investors. Despite these strengths, the UAE maintained a manageable public debt level at 31.1% of its GDP. This economic backdrop sets the stage for exploring the vast business opportunities within the UAE's strategic location, coupled with its robust economy and ambitious infrastructure projects, positions it as a pivotal hub for fastener manufacturing and supply.
KEY DRIVERS OF THE FASTENER INDUSTRY
The UAE's geographical position as a gateway between the East and the West offers significant advantages for fastener manufacturers and suppliers. It facilitates easy access to international markets, promoting trade and export activities. Based on this strategic location, UAE manufacturing sectors also grow, for example in:
>> Infrastructure Development: The UAE's ambitious infrastructure development is a key catalyst for its economy. Mega projects include:
◆ Expo 2020 Dubai (Oct 1, 2021 – Mar 31, 2022): Expo 2020 Dubai was a monumental event that left a lasting impact on the UAE's economy. With a staggering US$6.8 billion invested in urban development and infrastructure, the Expo served as a catalyst for growth. This significant financial injection fuelled construction projects, created jobs, and stimulated innovation, solidifying Dubai's position as a global business and tourism hub.
◆ Etihad Rail network is driving immense demand for construction materials. It is a cornerstone of the UAE's infrastructure development. Spanning over 1,200 kilometers, this ambitious US$30 billion project connects all seven emirates, facilitating efficient transportation of goods and passengers. By linking major industrial centers, ports, and population hubs, Etihad Rail is revolutionizing logistics, reducing transportation costs, and boosting economic growth. As a vital component of the GCC railway network, it strengthens regional trade and reinforces the UAE's position as a global logistics hub.
◆ Coupled with ongoing urban expansions in Abu Dhabi and Dubai: Abu Dhabi and Dubai are experiencing unprecedented urban growth, with ambitious development projects transforming the skylines. Billions of dollars are
being poured into residential, commercial, and infrastructure developments. For instance, Abu Dhabi's Saadiyat Island cultural district, valued at over US$27 billion, and Dubai's massive real estate projects like Dubai Creek Harbour, estimated at US$6 billion, are driving a construction boom that necessitates vast quantities of high-quality fasteners to support these ambitious urban expansions. (Estimated to inject over US$82 billion into the economy.)
◆ Construction Boom: The UAE's construction sector is experiencing a robust upswing, fuelled by a staggering US$590 billion project pipeline. With over US$87 billion worth of projects awarded in 2023 alone, the demand for construction materials is soaring. The residential market, buoyed by thousands of new units in Dubai and steady growth in Abu Dhabi, coupled with largescale commercial and infrastructure developments, creates a consistent and substantial need for fasteners, underpinning the sector's vitality.
>> Industrialization: The UAE's strategic shift towards economic diversification is driving robust industrial growth.
◆ The Automotive Industry: The UAE boasts a thriving automotive industry, contributing significantly to its economy. In 2022, the sector's value reached approximately US$17.5 billion, showcasing its robust growth. According to the latest market report published by Credence Research, the UAE demand for used cars market was valued at USD 20.2 billion in 2023 and is expected to reach USD 48.2 billion in 2030, growing at a CAGR of 11.50% between 2023 and 2030. The country is a major hub for luxury and high-performance vehicles, with Dubai hosting the world's largest auto show. Moreover, the UAE is actively transitioning towards electric vehicles, with a growing charging infrastructure and supportive government policies. With over 2.5 million registered vehicles, the automotive industry remains a key driver of the UAE's economic landscape.
◆ The Aerospace Industry: The UAE has emerged as a significant player in the global aerospace industry. With strategic investments and a focus on innovation, the sector has witnessed substantial growth. The industry's value is estimated to be around US$5 billion, contributing significantly to the nation's GDP. The country boasts a robust aerospace ecosystem, encompassing aircraft maintenance, repair, and overhaul (MRO) services, as well as components manufacturing. Additionally, the UAE is home to several leading airlines and cargo carriers, further bolstering its position in the aerospace sector. The aerospace industry's reliance on precision and durability aligns perfectly with the critical role of fasteners. Aircraft construction and maintenance demand a vast array of highstrength, lightweight, and corrosionresistant fasteners. From securing vital components like engines and wings to assembling intricate interior structures, fasteners are indispensable in ensuring aircraft safety and performance. As the UAE's aerospace sector continues to expand, so does the demand for specialized fasteners, creating lucrative opportunities for manufacturers and suppliers.
◆ The Petrochemical Sector: The UAE's petrochemical sector is undergoing a massive expansion. A projected US$135 billion investment is being channelled into this industry, fuelling the construction of new plants, refining facilities, and infrastructure. This surge in activity is creating a robust demand for industrial equipment, machinery, and materials, including a vast array of fasteners essential for the assembly and operation of these large-scale petrochemical projects.
◆ The Power Generation Industry: The UAE's power generation industry is experiencing a surge, with its value exceeding US$50 billion. This rapid expansion necessitates the construction of massive power plants, transmission lines, and distribution networks. To support this infrastructure, a colossal amount of industrial fasteners is required. From securing turbine components to reinforcing power substations, the demand for these essential elements is skyrocketing, mirroring the industry's robust growth.
Additionally, the manufacturing sector, anticipated to contribute US$15 billion to the GDP, further amplifies the need for high-quality fasteners to support this industrial expansion.
CONCLUSION
The UAE's geographical position, coupled with its ambitious infrastructure development, significantly boosts the fastener market. Major projects such as Expo 2020 Dubai, the Etihad Rail network, and ongoing urban expansions in Abu Dhabi and Dubai inject billions of dollars into the economy, driving demand for construction materials, including fasteners.
In addition to infrastructure, the UAE's shift towards industrialization fuels the growth of key sectors such as automotive, aerospace, petrochemical, and power generation. The automotive industry's projected growth to US$48.2 billion by 2030, the aerospace sector's strategic investments, the petrochemical industry's US$135 billion expansion, and the power generation industry's surge all create substantial demand for high-quality fasteners. The manufacturing sector, expected to contribute US$15 billion to the GDP, further amplifies the need for fasteners, solidifying the UAE as a dynamic and lucrative market for fastener manufacturers and suppliers.
Copyright owned by Fastener World Article by Dr. Sharareh Shahidi Hamedani, UNITAR International University
FASTENER WORLD NEWS
Industry Development
An "Enclave Economy" Industrial Park Starts Construction in Yongnian, Handan
邯鄲市永年“飛地經濟”產業園開工建設
The industrial park began construction on September 29. This is a major step to promote the transformation and upgrade of the local fastener industry. The park focuses on high-precision, high-strength fasteners and other metal products, striving to build an international smart manufacturing base for high-end fasteners. At present, there are 6 projects under construction, including Hebei Goodfix Industrial's export industrial park, Hebei Yunchang Fastener Manufacturing's high-end special wind power anchors, Uniexpv Technology's shared factory of photovoltaic brackets, Hebei Tuofa Telecommunication And Electric Equipment Manufacturing's ultra-high voltage power transmission and transformation device materials, Jiancangmeng (Jiangsu) Technology's warehousing and sales center, smart logistics and shared production center, involving the R&D and production of high-end fasteners, smart logistics, warehousing and export, shared facilities, etc., to create a new benchmark for the fastener industry.
China Steelmakers Stock 15.65 Million Tons of Steel in Mid-September, Up 4.5% from August
中鋼協：今年9月中旬鋼鐵企業鋼材庫 存1,565萬噸，環比上升4.5%
Data from China Iron and Steel Association shows that in mid-September, the steel inventory level of steelmakers was 15.65 million tons, up 680,000 tons or 4.5% from the previous month; an increase of 3.29 million tons or 26.6% over the beginning of the year.
U.S.
Makes a Definitive Decision to Impose Additional Tariffs on Chinese Products, Increasing 100% on EVs
美確定對中國產品加征關稅 電動汽車關稅提高100%
The U.S. government decided on September 13 to significantly increase import tariffs on Chinese products, with some tariffs taking effect on September 27. In addition to imposing a 100% tariff on Chinese EVs, the U.S. will also impose a 50% tariff on Chinese solar cells and a 25% tariff on Chinese steel, aluminum, EV batteries and critical minerals. Meanwhile, the U.S. has increased import tariffs on Chinese semiconductors by 50%. This new tax rate will take effect in January 2025. Two new subcategories have been added to the semiconductor category: polycrystalline silicon and silicon wafers used in solar panels.
According to the Chinese Ministry of Commerce, the Office of the United States Trade Representative previously solicited public comments on the results of the tariff review. Most of the opinions opposed the imposition of additional tariffs. The Ministry urged the U.S. to immediately cancel all additional tariffs on China.
Compiled by Fastener World
China's New Energy Vehicle Production and Sales Expected to Exceed 10 Million Units by November
中國新能源汽車產銷預計到11月將突破1,000萬輛
Chinese new energy vehicles are still maintaining rapid growth momentum. It is expected that up to this November, the production and sales of new energy vehicles will exceed 10 million units. Last year, the annual production and sales were 9.5 million units. The installed volume and output of power batteries are closely related to new energy vehicles and are directly proportional. The growth rates are also proportional. There is still a lot of room for new energy vehicles in the future.
Australia Postpones Release of Basic Fact Report and Final Ruling on Wire Rod AntiCircumvention Case Against China
On August 16, 2024, the Australian Anti-dumping Commission issued Announcement No. 2024/045, stating that it would postpone the release of the basic fact report and final ruling recommendations on the anti-circumvention investigation of wire rod imported from China. The Australia Commission is expected to release a basic fact report no later than January 24, 2025, and submit a final recommendation to the Australian Minister of Industry and Technology no later than March 10, 2025.
On August 12, 2015, Australia launched an anti-dumping investigation into wire rod imported from China. On April 22, 2016, Australia made a positive final anti-dumping ruling on the case. On July 27, 2020, the Australian Anti-dumping Commission issued Announcement No. 2020/077. In response to an application submitted by the Australian company InfraBuild (Newcastle) Pty Ltd, it launched the first anti-dumping sunset review investigation on wire rods imported from China. On April 12, 2021, the Australian Anti-dumping Commission issued Announcement No. 2021/032, deciding to continue to implement anti-dumping measures against China's products from April 23, 2021. The Australian customs codes of the products involved are 7213.91.00.44 and 7227.90.90.02.
On May 9, 2024, the Australian Anti-dumping Commission issued Announcement No. 2024/029 stating that, in response to an application submitted by Australian domestic enterprise InfraBuild (Newcastle) Pty Ltd, it initiated an anti-circumvention investigation into the antidumping case of Chinese wire rods and reviewed steel imported from China. The Australian Customs code of the product involved is 7314.20.00.24.
Boeing Expects the Number of Commercial Aircraft in China to More Than Double in the Next 20 Years
Boeing said the number of commercial aircraft in China will more than double in the next 20 years and is expected to become the world's largest air travel market. China will need 8,830 new aircraft over the next 20 years for replacement and growth, including 6,720 narrow-body aircraft such as 737 Max. This figure is an increase from Boeing's previous 20-year outlook forecast, which had predicted that China's commercial aircraft demand would be 8,560 aircraft by the end of 2042.
Boeing is betting that China's airline fleet will more than double due to strong demand for passengers and air cargo. The company forecasts China's passenger traffic will grow 5.9% annually, exceeding the global average of 4.7%. Approximately 60% of new aircraft deliveries will be used to expand the fleet and the remainder will be used to replace older aircraft. As a result, China's commercial aircraft fleet will more than double over the next 20 years to 9,740 aircraft, Boeing said. China will also have the world's largest widebody fleet.
Liew: "Malaysia Must Start Carbon Pricing and Taxation Before EU CBAM is in Force by 2026."
劉鎮東：「馬來 西亞必須在2026 年歐盟推出CBAM 前開始碳定價和 徵稅」
Malaysia is about to introduce carbon pricing to promote carbon trading and will explore the imposition of a carbon tax, according to Mr. Liew Chin Tong, Deputy Minister of Investment, Trade and Industry. Liew stressed that the revenue from these initiatives should be used for green investment, especially in the green steel sector. He also said: "Carbon pricing, trading and taxation are key steps in the decarbonization agenda. Malaysia must implement carbon pricing and taxation before the EU's 2026 carbon border tax kicks in." Liew explained that the implementation of CBAM means that steel and other products exported by Malaysia will be taxed by the EU unless Malaysia imposes a similar tax.
Canada Imposes 100% Tariff on Chinese EVs
On August 26, Canadian Prime Minister Trudeau announced a 100% tariff on Chinese electric vehicles, which has been effective since October 1 this year. Some analysts say that Canada's move is to follow the steps of the United States. The Chinese Embassy in Canada issued a statement saying that the Canadian government ignored China's repeated objections and solemn representations and insisted on announcing additional tariffs on Chinese electric vehicles and other products. China expresses strong dissatisfaction and firm opposition to this.
World's Largest Steelmaker Warns: China is in a Severe Crisis Harder To Endure Than Expected
Baowu Steel Group (China), the world's largest steelmaker, warned that China's steel industry is facing a crisis more serious than the downturns in 2008 and 2015. According to the group's statement, this industry crisis may last longer and "become more unbearable than we expected."
China, by far the world's largest steel market, has seen steel prices slump to multi-year lows and steelmakers suffer losses as a result of real estate downturn and weak factory activities that have severely damaged domestic demand this year. The multiple warning signals from Baowu Steel, which produces about 7% of the world's steel, could worry rivals in Asia, Europe and North America, as steelmakers across the world gird up the loins for a new wave of exports from China. China's steel industry suffered a devastating recession during the global financial crisis in 20082009, and was hit hard again in 2015-2016.
Baowu Group did not reveal much about the reasons for the current economic downturn. The company said cash now prioritizes over profits in weathering a long, harsh "winter".
Companies Development
Geely Automobile to Establish a JointVenture Automobile
Assembly Plant in Vietnam
Vietnamese company Tasco issued a statement saying that Geely Automobile and Tasco signed an agreement to establish a joint venture for an automobile assembly plant in Taiping Province, Vietnam, with a total investment of approximately US$168 million, of which Geely Automobile will contribute 36%. The factory will have an annual production capacity of 75,000 vehicles in the first phase and will assemble models under the Lynk & Co and Geely Automobile brands, with a possibility to expand to other brands in the future. Construction of the new factory is expected to begin in the first half of 2025, with the first batch of models expected to be delivered in early 2026.
Yunnan Aluminum Accelerates Development of New High-Performance Aluminum Alloys
Yunnan Aluminum actively develops more than 10 new products such as aluminum-magnesium alloy wire,
special-shape aluminum alloy, foam aluminum, soluble aluminum, honeycomb aluminum, gallium and lithium phosphate, and has launched construction of three new demonstration production lines for 3,000 tons of high-end special-shape aluminum alloy, 50 tons of gallium, 400 tons of lithium phosphate. In addition, to resolve the need to import aluminum alloy fasteners, Yunnan Aluminum has carried out R&D of key technologies for advanced aluminum alloy fastener materials for aerospace high-speed carrier equipment.
Changhua Group's Fasteners Are Successfully Used in Photovoltaic Energy Storage and Carbon Ceramic Braking Systems
長華集團緊固件產品已成功應用於光伏儲能及碳陶剎
The company focuses on the R&D, production and sales of automotive metal structural parts. Its main products include fasteners, stamping and welding parts, and lightweight aluminum castings, widely used in new energy and fuel passenger vehicles and other fields. In recent years, the company has continued to deepen its field expansion and explore new application scenarios for its products. Its fastener products have been successfully used in the fields of photovoltaic energy storage and carbon ceramic braking systems. The company attaches great importance to the development trends of cutting-edge advanced technologies, and will continue to focus on breakthroughs toward high difficulty, high precision, high added value and domestic substitution based on factors such as strategic planning, market development, customer needs and technical requirements.
Bossard Group to Set Foot in Shuangfeng Town, Taicang City
Bossard集團落戶太倉市雙鳳鎮
On July 26, the global fastener industry leader Bossard Group and Wengu Sealing System (Suzhou) Co., Ltd. officially signed a contract in Shuangfeng Town. The two parties will join forces and complement each other's advantages to jointly establish Wenzhong Sealing Systems (Jiangsu) Co., Ltd. , marking a new stage in the comprehensive deepening of cooperation between the two parties.
Wenzhong Sealing Systems (Jiangsu) Co., Ltd. will focus on the R&D, production and sales of fasteners and anti-loosening, sealing and other rubber products for the automotive market, relying on the global resources of Bossard Group and the local
advantages of Suzhou Wenzhong, which will provide customers with customized, one-stop fasteners and anti-loosening, sealing and other glue coating solutions.
After the Wenzhong project is put into operation, it is expected to achieve an annual output value of more than RMB 50 million. With the continued development of the market and business, the company will further increase its investment in Shuangfeng.
Würth Group Releases Results for the First Half of 2024
Sales of Würth Group (Germany) were 4 billion euros, compared with 4.2 billion euros in the same period last year. Sales of companies outside Germany fell 1.8% compared with the same period last year. Within the core business of the Würth Group, the automotive division achieved positive growth of 4.2%. Among the Group's alliance companies, the Chemicals segment is showing good momentum (+6.6%). With the approval of the European Commission, Würth Group successfully acquired 80% of the shares of IDG01 S.p.A., a leading electrical wholesaler in the Piedmont region of Italy, located in Turin on July 1, 2024.
This move strengthens the market position of the electrical wholesale division in Italy and promotes further development in this market. The company has 580 employees in 41 locations and generated sales of 285 million euros in 2023.
The Würth Group's operating results were 525 million euros, down year-on-year (2023: 680 million euros) due to lower sales in the first half. The Würth Group continues to maintain a solid financial position.
Volkswagen Considers Closing German Plants to Cut Costs
Volkswagen is considering closing factories in Germany to further cut costs, an unprecedented move that would deal another blow to the German government. The potential measures target Volkswagen's main passenger car brands as well as other group entities. Specific measures also include trying to terminate the agreement reached between the company and the labor union to ensure employment stability until 2029. The closure would mark the first time Volkswagen has closed a factory in Germany in its 87-year history, and the company is expected to clash with powerful labor unions.
Hyundai Motor Plans to Achieve Annual Sales of 5.55 Million Vehicles in 2030, Including 2 Million EVs
現代汽車擬2030年實現555萬輛年
To achieve annual sales of 5.55 million vehicles, the company plans to expand production facilities at its global operating bases and increase production capacity by 1 million vehicles. The company plans to invest a total of US$90.13 billion from 2024 to 2033 to actively support the implementation of this strategy. This is a 10.1% increase from Hyundai Motor's investment plan from 2023 to 2032.
An important focus of the new strategy is electric vehicles. Hyundai Motor aims to sell 2 million electric vehicles by 2030, accounting for approximately 36% of its total vehicle sales. Among them, it plans to sell 690,000 units in North America and 467,000 units in Europe.
The company plans to improve its self-developed hybrid system to better meet the growing demand. The company also intends to expand its hybrid powertrains, previously found mainly in compact and midsize cars, to a wider range of models. The expansion will increase the number of hybrid models to 14 from the current 7. Hyundai Motor said it plans to increase sales of hybrid vehicles to 1.33 million units by 2028, significantly expanding its sales scale.
Acquisitions
Bossard to Acquire the Aero Negoce International Group and Significantly Expand Its Presence in the Aerospace Industry
The Bossard Group has signed an agreement to acquire the French Aero Negoce International Group (ANI).
Aero Negoce International SAS, headquartered in Béziers, France, employs 33 people and expects net sales of around EUR 25 million for the current financial year. ANI is a leading French distributor of fastening solutions and provider of logistics services in the aerospace industry. The company also has locations in the USA and Malaysia. Through the contemplated acquisition, Bossard will significantly expand its market presence in the strategically important aerospace industry and in France. In combination with Boysen (now Bossard Aerospace Germany), acquired in 2019, Bossard would become a leading distributor of fastening systems and provider of logistics services in the European aerospace industry.
“The intended acquisition of Aero Negoce International SAS is an important step to accelerate our growth strategy in the aerospace industry and strengthens our strategic presence in the Aerospace Valley in France. In addition, we see great market opportunities in the cooperation with Bossard Aerospace Germany, which will further strengthen our position in the European aerospace industry,” says Daniel Bossard, CEO of the Bossard Group. “We are thrilled about this transaction. The Bossard Group's backing will provide Aero Negoce International
SAS with a great opportunity to continue its growth trajectory while preserving the service-oriented ethos that has defined our family business since its inception,” said Patrick and Nathalie Bianchini, who led the company in the second generation.
The closing of the transaction is expected within 2024 and is subject to the approval of the regulatory authorities and other customary closing conditions. The acquisition will be financed through the use of existing credit facilities.
Coventry Group Acquires Steelmasters Group Coventry集團併購Steelmasters集團
IperionX and Vegas Fastener to Co-Produce Titanium Fasteners for U.S. Army
澳洲IperionX和美國Vegas Fastener將為美國陸軍聯合生 產鈦扣件
Steelmasters
Group is a leading Australasian supplier and manufacturer of industrial and speciality fasteners through its network of 12 branches (four in New Zealand and eight in Australia) with its head office in Auckland, New Zealand. Coventry Group Ltd announced the completion of the acquisition of SteelMasters Auckland Limited for AUD 42.1 million on May 1. The acquisition will:
• Increase Coventry Group’s customer base and industry exposure;
• Broaden the trade distribution segment's scale and reach through an additional 12 locations (8 in Australia and 4 in New Zealand);
• Expand the specialized fastener product range and add manufacturing capability.
Coventry Group will operate Steelmasters Group as a separate division of trade distribution to minimize integration risk and the division will continue to be run by Steelmasters Group’s existing management team.
Australian company
IperionX Limited and Vegas Fastener Manufacturing have agreed to partner to develop and manufacture titanium alloy fasteners and precision components with IperionX's advanced titanium products. Vegas Fastener is a global leader in the development and manufacturing of high-performance fasteners and custom machined components. Together with its allied company, PowerGen Components, Vegas Fastener serves a diverse array of customers in the defense, marine, power generation, oil & gas, nuclear, chemical, and water infrastructure sectors. Vegas Fastener develops and manufactures precision high-performance fasteners using specialized alloys to meet demanding quality specifications.
IperionX and Vegas Fastener's commercial focus is on developing and manufacturing titanium alloy fasteners and precision components for the U.S. Army Ground Vehicle Systems Center (GVSC), which is the United States Armed Forces' research and development facility for advanced technology in ground systems. GSVC's research and development includes robotics, autonomy, survivability, power, mobility, intelligent systems, maneuver support and sustainment.
Additionally, the partners will design, engineer and produce titanium fasteners for critical sectors such as the aerospace, naval, oil & gas, power generation, pulp & paper and chemical sectors. These sectors demand fasteners that provide not only high strengthto-weight ratios but also exceptional corrosion resistance for highperformance applications.
Swift Metal Australia Acquires Binder Group
Swift Metal is a supplier of rolled thread components to OEM manufacturers, builders, construction and mining industries Australia-wide. Swift Metal Australia has acquired Binder Group. Effective February 1, 2024, this strategic move not only positions Swift Metal Australia as a major player in pipeline components but heralds the return of Binder Group's manufacturing to Australian shores.
“This acquisition reaffirms our focus to being a specialist business partner for heavy industry and infrastructure projects and our ongoing commitment to Australian manufacturing,” Swift Metal chief executive officer Dan Lindsay said. With Binder's expertise in the mining and petrochemical industries, Swift Metal Australia is set to emerge as a multidiscipline force in delivering quality pipe support systems across the Asia-Pacific region. The acquisition brings compelling benefits, notably the resurgence of Binder Group to Australian
Import and Export Statistics of Chinese Fasteners in H1 2024
The latest data from General Administration of Customs of China (http://stats.customs.gov.cn/) show that the value of China’s fastener export to the world continued upward from 2018 to 2022 (Figure 1) and exceeded the USD 10 billion mark in 2022. In these four years, the value increased from USD 6.4 billion to USD 10.9 billion, a significant growth of 69.5%. 2022 has become a dividing year between the upward and downward trends. The export value in 2023 (USD 9.13 billion) fell back to the level close to 2021, down 16.4%. In H1 2024, the export value reached USD 4.55 billion (Table 1). Based on this accumulation, the export value for the 12 months of 2024 may be somewhere close to the level of 2023, and overall could still be in a downward range. However, it should still be higher than the pre-2019 level. In other words, it is already past the record-breaking phase. Without critical international political and economic changes, there is still a high chance that China's fastener export value will gradually decline to next year.
China's import of fasteners from the world was generally decreasing in the past five years (Figure 2), from USD 3.21 billion in 2018 to USD 2.44 billion in 2023, down 24.0%, indicating China's demand for overseas fasteners continued to decrease. The import value in H1 2024 was USD 1.23 billion (Table 2). It is estimated that the import value in the 12 months of 2024 may near the level of 2023.
Table 1 shows that the main export destinations for China's fasteners in H1 2024 were the U.S., Russia, Vietnam, Germany, and South Korea, where the U.S. accounted for 14.9% (USD 670 million) and significantly surpassed other export destinations. Table 2 shows the main import sources were Germany, Japan, the U.S., Taiwan, and Italy, where Germany (USD 250 million) and Japan (USD 240 million) both accounted for more than 20%. It shows that in H1 2024, China mainly sold fasteners to the U.S. and imported fasteners mainly from Germany and Japan.
Table 3 sorts out the top 5 import and export partners with China on the following HS codes: 731811 (square head screws), 731812 (other wood screws), 731813 (hook screws and eye screws), 731814 (self-tapping screws), 731815 (other screws and bolts), 731816 (Nuts), 731819 (other steel threaded products), 731821 (spring washers and other anti-loosening washers), 731822 (other washers), 731823 (rivets), 731824 (pins and cotter pins) and 731829 (other non-threaded steel products).
Export of Chinese Fastener Subcategories
In H1 2024, the top 3 Chinese fastener subcategories with the highest global export value were 731815 - other screws and bolts (around USD 2.03 billion, accounting for 45%), 731816 - nuts (around USD 770 million, accounting for 17%) and 731819 - Other steel threaded products (around USD 470 million, accounting for 11%) (Figure 3).
In the ranking of top five export destinations (Table 3), it is worth noting that, compared to other entrants, the U.S. had a higher demand over other entrants on the list for Chinamade wood screws (731812), nuts (731816), washers (731821, 731822), rivets (731823), pins and split pins (731824), and various screws and bolts (731813, 731815).
In the ranking, the U.S. purchased as many as 10 subcategories of Chinese fasteners, followed by Russia (9) and Vietnam (7). Russia's demand particularly for China-made self-tapping screws (731814) was higher than the other entrants on the list.
Table 1. China’s Fastener Export Value in H1 2024 (HS code 7318)
Figure 1. China’s Export Values of Fasteners to the World from 2018 to 2023
731815- Other Screws and Bolts, (USD 2,032,313,786 , 45%)
731815- Other Screws and Bolts
731816- Nuts
731819- Other Steel Threaded Products
731821- Spring Washers and Other An�-loosening Washers
731822- Other Washers
731823- Rivets
731824- Pins and Split Pins
731829- Other Non-threaded Steel Products
731811
3. Ranking of Top 5 Export Destinations for Chinese Fastener Subcategories
Export of Chinese Fastener Subcategories
In H1 2024, the top 3 Chinese fastener subcategories with the highest global import value were 731815 -Other screws and bolts (around USD550 million, accounting for 45%), 731816 -Nuts (around USD220 million, accounting for 19%) and 731822-other washers (around USD120 million, 10%) (Figure 4).
In the ranking of top five import sources (Table 4), China has a higher demand for Germany-made screws and bolts (731813, 731815), rivets (731823), spring washers and other anti-loosening washers (731821), pins and split pins (731824), as well as Taiwan-made other wood screws (731812), self-tapping screws (731814), nuts (731816), as well as Japan-made square head screws (731811) and other washers (731822), over the same subcategories made by other entrants on the list.
In the ranking, China purchased as many as 12 subcategories from Japan, 11 from the U.S., 10 from Germany and 9 from Taiwan.
Lastly, we found that although Taiwan only accounted for 10% of China’s global fastener import (Table 2), which is far below Germany’s share at 21%, China purchased up to 9 subcategories of Taiwanese fasteners. This shows that China still has a considerable demand for various Taiwanese fastener products.
Figure 4. Import Value Porpor�ons of Chinese Fastener Subcategories
731811- Square Head Screws, (USD 972,380,0.07%)
731829- Other Nonthreaded Steel Products , (USD 58,679,488, 5%)
731824- Pins and Split Pins, (USD 107,725,081, 9%)
731823- Rivets, (USD 25,233,756, 2%)
731822- Other Washers, (USD 126,058,389, 10%)
731821- Spring Washers and Other An�-loosening Washers, (USD 30,093,119, 3%)
731813- Hook Screws and Eye Screws, (USD 2,990,964, 0.2%)
731814- Self-tapping Screws, (USD 48,697,504, 4%)
731815- Other Screws and Bolts, (USD 558,745,334, 45%)
731812- Other Wood Screws, USD 367,648, 0.02%
731819- Other Steel Threaded Products , (USD 41,541,465, 3%)
731816- Nuts, (USD 229,299,527, 19%)
731811- Square Head Screws
731812- Other Wood Screws
731813- Hook Screws and Eye Screws
731814- Self-tapping Screws
731815- Other Screws and Bolts
731816- Nuts
731819- Other Steel Threaded Products
731821- Spring Washers and Other An�-loosening Washers
731822- Other Washers
731823- Rivets
731824- Pins and Split Pins
731829- Other Non-threaded Steel Products
Table 4. Ranking of Top 5 Import Sources for Chinese Fastener Subcategories
The Fastener Market of Ecuador (2019-2023)
2019-2023厄瓜多扣件市場剖析
Overview of Ecuador's Economy
Ecuador is a developing country in South America with a diverse economy that heavily relies on petroleum, its main export, as well as agriculture and mining. In recent years, Ecuador has experienced moderate economic growth, shaped by global oil prices, domestic policies, and regional economic conditions. According to the World Bank, Ecuador's GDP growth was about 0.1% in 2019 but contracted significantly by -7.8% in 2020 due to the COVID-19 pandemic. The economy rebounded in 2021 with an estimated growth of 3.5% and continued to grow by around 2.8% in 2022. By 2023, Ecuador's GDP reached approximately US$118.84 billion, indicating a gradual recovery and moderate growth amid ongoing global economic uncertainties.
These economic fluctuations have significantly impacted various sectors, including manufacturing and construction, which are major consumers of fasteners. However, economic reforms, fiscal consolidation, and increased public and private investments have supported the recovery, alongside favourable global oil prices and a resurgence in domestic demand.
Manufacturing and Construction Sectors in Ecuador
The manufacturing sector in Ecuador is diverse, ranging from food and beverages to textiles, chemicals, and metal products. According to the Central Bank of Ecuador, manufacturing contributed approximately 12% to Ecuador's GDP in 2020. The construction industry, another significant consumer of fasteners, contributed about 7% to GDP in the same year. Both sectors were affected by the COVID-19 pandemic, which caused supply chain disruptions and reduced production capacities due to lockdowns and health measures.
Despite these challenges, the manufacturing sector has been gradually recovering. The construction sector also showed signs of recovery post-2021, driven by public infrastructure projects and an increase in residential building activities. The demand for fasteners in these sectors is closely tied to these economic activities.
Trade Statistics: Imports and Exports of Fasteners
The fastener market in Ecuador is primarily import-driven due to limited domestic manufacturing capabilities. The trade data for fasteners (HS Code 7318) shows significant import activity, with a diverse range of suppliers and a smaller volume of exports.
Import Analysis
INDUSTRY FOCUS
Ecuador imports a substantial amount of fasteners to meet the needs of its construction and manufacturing sectors. The leading countries exporting fasteners to Ecuador from 2019 to 2023 are:
• China: The dominant exporter, with imports peaking at US$25.61 million in 2022. Despite a decline in 2023 to US$17.03 million, China remains the largest supplier, driven by its cost-effective production and extensive product range.
• USA: The second-largest exporter, with relatively stable imports averaging around US$5-6 million per year. In 2023, imports from the US were valued at US$6.26 million, indicating a consistent demand for high-quality fasteners.
• Germany: Imports from Germany rose significantly from US$0.95 million in 2019 to US$2.38 million in 2023, suggesting increased demand for specialized, highquality fasteners from Europe.
• Other notable exporters: South Korea, Taiwan, Colombia, Brazil, Japan, Canada, and Italy have also been consistent suppliers, contributing to the diverse supply chain in Ecuador. Noteworthy is the steady growth in imports from South Korea, which increased from US$0.59 million in 2019 to US$1.98 million in 2023, reflecting a growing market for Korean fastener products.
The import data shows variability in annual values, influenced by global supply chain disruptions, economic conditions, and changing demand patterns in the local market.
Export Analysis
Ecuador's fastener exports are minimal, reflecting a small domestic production base focused on basic and low-technology products. Key export destinations from 2019 to 2023 include:
• USA: The largest export market, though the values remained low, peaking at US$0.230 million in 2023.
• Colombia: The second-largest export market, with values fluctuating between US$0.059 million in 2019 and US$0.113 million in 2023.
• Netherlands: A smaller but growing market, with exports increasing from near zero in 2020 to US$0.089 million in 2023.
Overall, Ecuador's fastener exports remain limited, constrained by a lack of hightechnology production facilities and an emphasis on meeting domestic demand through imports.
Detailed Analysis of the Fastener Market in Ecuador (2019-2023)
The Latin American industrial fasteners market was valued at US$ 7,534 million in 2022 and is projected to reach US$ 8,198 million by 2030, growing at a compound annual growth rate (CAGR) of 5.0% from 2023 to 2030.
However, economic challenges are anticipated to impact this growth. Ecuador, along with Brazil, Argentina, Colombia, Chile, and Bolivia, faces economic uncertainties and social instability that may affect regional economic performance. These issues have repercussions for key sectors such as automotive manufacturing, construction, and furniture and plumbing production, which experienced disruptions in 2020 and impacted the demand for industrial fasteners.
Between 2019 and 2023, the Ecuadorian fastener market was influenced by factors such as economic recovery, infrastructure development, and shifts in global trade dynamics. The market, primarily driven by imports, experienced a downturn in 2020 due to the pandemic but saw a recovery in 2021 and 2022 as construction and manufacturing activities resumed. The market is segmented into industrial and commercial fasteners, reflecting its diverse applications and recovery trajectory.
Demand Drivers
• Construction Sector Recovery: The resurgence of the construction sector post-pandemic has driven demand for fasteners, particularly for infrastructure projects.
• Automotive Industry: Steady growth in the automotive sector has led to increased demand for automotive fasteners, such as bolts, screws, and rivets.
• Industrial Machinery: The need for maintenance, repair, and new machinery installations has spurred demand for industrial fasteners.
Supply Chain and Import Dynamics
The supply chain for fasteners in Ecuador is heavily reliant on imports. The dominance of imports from China reflects the global trend of sourcing cost-effective products from Asian manufacturers. The diversity of suppliers also indicates a strategic approach to mitigating supply chain risks and ensuring a steady supply of various types of fasteners.
Key Players and Market Competition
Key players in the Ecuadorian market include both international brands and local distributors. Competition is driven by price, quality, and availability, with local distributors focusing on cost-effective imports and international brands emphasizing quality and specialized products.
Market Trends and Future Outlook
The market is expected to continue its recovery and growth, supported by ongoing construction projects and a potential increase in local manufacturing capabilities. However, the dependency on imports and fluctuations in global trade will continue to influence market dynamics.
Outlook
The fastener market in Ecuador is influenced by multiple economic, regulatory, and political factors that impact both the business environment and investment decisions. While there are opportunities for growth, particularly with the need for industrial components in manufacturing and construction, challenges persist due to Ecuador's dynamic regulatory environment and complex bureaucratic processes. Frequent changes in economic, commercial, and investment policies add uncertainty and can elevate the risks and costs associated with doing business in the country.
Despite these obstacles, there are ongoing efforts to improve transparency and public consultation in regulatory processes, as well as initiatives like the Global Procurement Initiative (GPI) to encourage best practices in procurement. However, the lack of a free trade agreement or bilateral investment treaty with key partners like the United States places Ecuador at a competitive disadvantage compared to neighbouring countries with more favourable trade agreements.
Overall, while Ecuador presents a market with potential for growth, especially in the fastener industry, businesses must navigate a challenging regulatory landscape, stay abreast of evolving policies, and manage risks associated with market entry and operation.
References:
Ecuadorian Chamber of Industries and Production, and Construction Chamber.
Ecuadorian Institute of Statistics and Census (INEC), Economic Indicators.
UN Comtrade Database, Ecuador Trade Statistics.
Latin America Industrial Fasteners Market Size, Growth and Forecast to 2030.
IT Trade Map, trade statistics for international business development.
Copyright owned by Fastener World / Article by Shervin Shahidi Hamedani
The Fastener Market of Uruguay in 2019-2023
2019-2023烏拉圭扣件市場剖析
An Overview of Uruguay
Uruguay, a small yet dynamic nation in South America, has a population of approximately 3.5 million people. The country's economy has shown resilience in recent years, with a GDP (Purchasing Power Parity) of US$98.7 billion and a notable 4.9% growth rate in 2022. The five-year average growth rate stands at 1.0%, with a GDP per capita of US$27,770.
However, the country faces challenges, including an unemployment rate of 10.4% and inflation at 9.1%. Foreign Direct Investment (FDI) inflows were US$3.8 billion, and public debt was 59.3% of GDP, reflecting both opportunities and pressures on the economy. These economic factors influence various sectors, including the fastener industry, which plays a crucial role in supporting Uruguay's construction, automotive, agriculture, and manufacturing industries.
Industry Overview
The fastener industry in Uruguay is relatively small but vital for several key sectors, including construction, automotive, agriculture, and manufacturing. Uruguay relies heavily on imports to meet its fastener needs, particularly from neighbouring countries like Brazil and Argentina, as well as global suppliers from China and the United States. Local production exists but is limited, focusing on specialized or custom-made fasteners.
Import Analysis: 2019-2023
The table below provides an overview of fastener exports to Uruguay from various countries between 2019 and 2023, measured in thousand USD. The share of each country’s exports relative to the total Uruguay imports is also presented.
• 2020: Imports increased by 12%. This growth indicates a steady demand for fasteners, due to ongoing or new construction projects, as well as other industrial activities, despite the onset of the COVID-19 pandemic.
• 2021: The most significant growth occurred in 2021, with imports surging by 61%. This sharp rise was attributed to the post-pandemic recovery, where delayed construction and industrial projects resumed, leading to a heightened demand for fasteners. It might also reflect stockpiling or a catch-up effect due to earlier supply chain disruptions.
• 2022: The upward trend continued, marking a 20% increase from the previous year. This continued growth suggests robust economic activities in key sectors such as construction and manufacturing, where fasteners are essential.
• 2023: However, 2023 saw a decline, with imports dropping by 11%. This decrease is due to several factors, including potential economic slowdowns, reduced demand in key sectors, or increased local production reducing the need for imports. It also indicates a stabilization after the rapid growth in the previous two years.
Key Import Origins China
♦ Value: China's exports to Uruguay increased from US$2,617,000 in 2019 to US$6,842,000 in 2023.
Overall Import Trends
Note: Numbers are in 1,000 USD
Uruguay's total imports of fasteners grew significantly from US$10,043,000 in 2019 to a peak of US$21,812,000 in 2022, before declining to US$19,310,000 in 2023. This overall trend reflects robust demand growth, followed by a slight normalization in 2023.
• 2019: This year serves as the baseline for subsequent growth analysis.
♦ Growth and Share: China’s share of Uruguay’s fastener imports grew to 35.4% by 2023, making it the largest supplier.
Brazil
♦ Value: Brazilian exports grew from US$2,765,000 in 2019 to US$4,280,000 in 2023.
♦ Growth and Share: Brazil maintained a strong position as Uruguay’s second-largest supplier with a 22.2% share in 2023.
USA
♦ Value: The U.S. exports fluctuated, starting at US$1,135,000 in 2019 and reaching US$1,841,000 in 2023.
♦ Growth and Share: The U.S. maintained a smaller but significant market share, standing at 9.5% in 2023.
Argentina
♦ Value: Argentina's exports increased from US$678,000 in 2019 to a peak of US$1,158,000 in 2022, then decreased to US$971,000 in 2023.
♦ Growth and Share: Argentina's share in the market was 5.0% in 2023.
Spain
♦ Value: Spain's exports grew steadily from US$410,000 in 2019 to US$946,000 in 2023.
♦ Growth and Share: Despite being a smaller player, Spain increased its market share to 4.9% by 2023.
Other Countries
♦ Value: Fastener imports from other countries grew sharply from US$2,438,000 in 2019 to US$7,226,000 in 2022, then declined to US$4,430,000 in 2023.
♦ Growth and Share: These countries collectively held a 22.9% share in 2023.
Note
♦ Dominance of China: China's rapid growth in fastener exports to Uruguay, capturing over a third of the market by 2023, emphasizes its leading role in the global fasteners market.
♦ Regional Significance: Brazil and Argentina remain crucial suppliers due to geographical proximity and established trade relationships, with Brazil maintaining a strong second position.
♦ Diversification: While major exporters like China and Brazil dominate, there is a significant and growing contribution from other countries, indicating that Uruguay is sourcing fasteners from a diverse range of suppliers to meet its growing demand.
Export Analysis: 2019-2023
The table below provides data on Uruguay's fastener exports to the global market from 2019 to 2023. It is obvious that their export to the world is almost nothing.
♦ 2022: A remarkable surge occurred in 2022, with fastener exports jumping 194% from 2021.
♦ 2023: Exports decreased 41% from the peak in 2022.
Final Words
Based on main industries related to the fastener industry, the future of fastener industry is forecastable.
♦ The Construction Industry: The construction sector is the primary driver of fastener demand in Uruguay. From residential buildings to large-scale infrastructure projects, the need for reliable and durable fasteners is critical. The Uruguay construction market size was US$7.7 billion in 2023. The market will achieve an average annual growth rate of 3% during 2024-2028.
♦ The Automotive Industry: Uruguay’s automotive industry, though not as large as in neighbouring countries, plays a significant role in the demand for fasteners. In 2021 the market bounced back right away, reporting at 42.6% variation that took sales up to 49,267 units. In 2022 sales maintained the momentum, growing 7.2% to 52,829 units. The Uruguayan vehicles market in 2023 registered 58,314 units of sales and were up 10.3% from the previous year. The revenue in the passenger cars market in Uruguay was forecast to continuously increase between 2024 and 2028 by 368.4 million U.S. dollars in total (+57.26 percent). After the sixth consecutive increasing year, the indicator is estimated to reach 1 billion U.S. dollars and therefore a new peak in 2028.
♦ The Manufacturing Industry: The manufacturing sector in Uruguay, while diversified, includes several industries that rely on fasteners, such as machinery production, metalworking, and electronics. Manufacturing production in Uruguay fell by 1.8% in June 2024 from a year earlier, following a 1.7% growth in the prior month. Main contributors to the decline were: Petroleum Refinery (-31.0%) followed by Paper and Paper Products (-10.5%). On the other hand, the greatest positive impact was recorded for Food Products (7.1%) and Milling Products, Starches and Products Derived from Starch (40%). Industrial production in Uruguay decreased 1.80 percent in June of 2024 over the same month in the previous year. Industrial production in Uruguay is expected to be 1.70 percent by the end of this quarter. In the long-term, the Uruguay Manufacturing Production is projected to trend around 1.60 percent in 2025.
Copyright owned by Fastener World Article by Behrooz Lotfian
New Quick Access Panel Fastener
新型快速取用式板材緊固件
The plastic quarter turn panel fastener by Euro Locks is manufactured from high strength PA6 GF15 V0 material, making it corrosion resistant and fire resistant to level V0.
The ergonomic design allows for easy installation and removal of cover panels without the use of additional tools, making it the perfect fastener for rack and data cabinets, or any enclosure in the power industry where a durable fastener with a high V0 fire resistance level is required.
Heavy-duty Retractable Ball-lock Fasteners
重型可伸縮球鎖緊固件
Fixtureworks has augmented its One-Touch Fastener lineup with the addition of a heavy-duty version of the retractable clamping/knob locking fastener. The heavyduty version provides a high clamping force up to 450 lb. (2000N) and a holding force up to ll20 lb. (5000N). These heavy-duty retractable fasteners provide positive locking in quick change applications where there is frequent insertion and removal of a fixture.
The retractable pin feature allows the fastener to safely slide off from the base without interference, making it ideal for slide and door applications. The new fasteners will not release until the knob is turned to the “OFF” position, allowing the balls to retract into the shank and allowing the shank to be raised out of the way of the base plate for no interference.
Strong-Drive SWD DoubleThreaded Screw
強力驅動式SWD雙螺紋螺絲
Simpson Strong-Tie is extending its line of structural fasteners with the launch of the Strong-Drive SWD Double-Threaded screw. With its innovative design, the SWD wood-to-wood screw can replace some interior and exterior connectors, potentially reducing installation times and labor costs.
Designed for stealth, strength and speed, the SWD Double-Threaded screw is a low-profile structural screw with a compact, cap-style head to reduce its visibility. The screw’s unique double-thread design with differentiated thread geometries and smooth mid-shank holds wood members together tightly. It features a black exterior double-barrier coating for corrosion resistance and a chisel tip for fast starts, easy driving at any angle and reduced splitting.
The new screw is suitable for applications including beam-to-post, beamto-joist, purlin-to-truss, guardrail-to-post and roof-to-wall connections; multiply assemblies; knee bracing; cap connector replacements; and post-frame connections.
ALLEY
扣件新品大道
compiled
by Fastener World
New Bolt Monitoring System for Wind Turbines
風力渦輪機的新型螺栓監控系統
BOLTcontrol is a monitoring system by Weidmuller USA that detects broken bolts or studs in the wind blade root that connects to the hub. BOLTcontrol will alert operators immediately of any issues.
With BOLTcontrol, broken bolts are held securely in place with detection plates, which prevents consequential damage that would result if the pieces fell into the hub and ricocheted as it rotated. By continuously monitoring the rotor blade bolts, BOLTcontrol minimizes downtime, reduces repair costs and ensures the safe uninterrupted operation of the turbine.
“The bolted connections between the hub and rotor blade are constantly subjected to dynamic loads in a wind turbine,” said Pete Tecos, director of new energy solutions at Weidmuller USA. “Stud and bolt failures have become more common, and BOLTcontrol not only alerts operators to blade root fastener failures, but also prevents the fractured components from falling into the hub, thereby avoiding costly damages to pitch systems and other critical components.”
Remote Screw Loosening Detection System
遠端螺絲鬆動檢測系統
In recent years, reducing the burden of screw maintenance has become a social issue in Japan. With the shortage of labor and the need to deal with aging infrastructure, it is becoming more difficult to secure sufficient workers, and improving safety when working at high altitudes or in dangerous locations is also an issue.
To solve these issues, by collaborating with Momo Co., Ltd. which has strengths in IoT, Japanese Ikeda Metal Industrial has built a system in which IoT sensors that detect loosening are embedded in screws and the status can be checked from a remote location. By working only when and where necessary, this leads to improved work efficiency and reduced accidents.
An IoT sensor that detects loosening is embedded in the screw and the loosening status is sent to a database on the cloud. The data can be referenced from a remote location to check which screws are loose.
It is intended to be used in places where people cannot easily access, such as steel towers in mountainous areas, offshore power generation, and large-scale plants.
i-Marker 1000 Bolt Marking Sprayer
「i-Marker 1000」螺栓標記用噴霧器
The "i-Marker 1000" is a bolt marking sprayer by Japanese NichEr for marking wheel bolts on large vehicles like trucks and buses. Place the sprayer on a wheel nut, and push once to complete the marking. This is a workload saver for operators, faster, cleaner and convenient. The sprayer makes the work 4 times faster compared to manually marking with a marker pen.
PEEK Screws
PEEK螺絲
Among resin materials, PEEK is a super engineered plastic that exhibits particularly high performance. It is a highly functional resin that boasts high performance in terms of heat resistance, abrasion resistance, and chemical resistance, applicable in a variety of environments.
Japanese Maruemu Works can produce and supply Phillips screws and cap screws made of this material.
Features:
• Heat resistance: Suitable for continuous use at a maximum temperature of 260°C.
• Chemical resistance: Withstands various acids and alkalis, and performs well even in hydrocarbons and organic solvents.
• Mechanical strength and dimensional stability: High strength and rigidity even at high temperatures, and excellent creep resistance and fatigue resistance over a long period of time.
• Excellent electrical properties: Consistent physical properties over a wide range of frequencies and temperatures.
Application fields:
• Semiconductors, medical, automotive, aerospace.
Latest Update on African Fastener Industry
Foreword
With a vast area and a population of more than 1.4 billion, Africa enjoys a demographic dividend and consumption potential, and with a middle class of more than 300 million people, it attracts a large amount of international investment. Economically, Africa's GDP reached US$2.99 trillion in 2023, with an average economic growth rate of 3.3%, and it is estimated that the GDP will grow to US$3.15 trillion in 2024, with a growth rate of 4%. Africa is considered the new engine of the global economy, and this article takes South Africa, Morocco, and the Congo, which have high rates of compound growth of imports, as the targets, putting forward suggestions for the development of the fastener industry in these three countries.
Africa’s Fastener Import and Export Import
Table 1 shows Africa’s fastener import trend in 2019-2023. In 2023, Africa imported US$1.184 billion worth of fasteners and the CAGR in the last five years was about 4.3%. Africa’s top 3 fastener importers were: South Africa (US$200 million), Egypt (US$140 million), Morocco (US$133 million). The CAGR of Congo ranked 4th in import value was up to 36.8%. Africa’s fastener imports in the global share was low (only 2.4%), but high demand for infrastructure, large hinterland, populous Africa make it a potential market in the future.
Table 1. Africa’s Fastener Import Trend in 2019-2023
Export
Table 2 shows Africa’s fastener export trend in 2019-2023. In 2023, the top 3 fastener exporters in Africa were South Africa (US$100 million), Morocco (US$25.145 million), and Tunisia (US$3.629 million). Africa's export CAGR was about 4.5% in the past five years, and those of Morocco and Tunisia were both more than 10%. 70% of South Africa's fastener exports were for the supply of internal demand in Africa (mainly for Congo), Africa's fastener exports amounted to about US$144 million, accounting for only 0.3% of the global fastener exports.
The Trend of Taiwan’s Fastener Export to Africa
Table 3 shows the trend of Taiwan’s fastener export to Africa in 2019-2023; in recent years, the main destinations in Africa of Taiwan’s fastener export were South Africa and Egypt, with South Africa accounting for 67.2%. The CAGR of Taiwan’s fastener export to South Africa in the past five years has been flat. Algeria, the third largest fastener export destination in Africa, had a CAGR of 15.5%, though its export value was much lower than that of South Africa, making it a market that can be assessed for its benefits.
Table 3. The Trend of Taiwan’s Fastener Export to Africa in 2019-2023
Africa’s Major Fastener Import Origins
South Africa
Table 4 shows the trend of imported fasteners in South Africa in 2019-2023. In 2023, the value of fasteners imported by South Africa from the world was US$200 million, and the CAGR of import in the past five years was about 3.1%. The values of the top three import origins were: China (US$65.213 million), the U.S. (US$26.595 million), Germany (US$25.086 million). The top 10 import origins accounted for 85.8% of South Africa's fastener imports; it is worth noting that Taiwan was South Africa's fourth largest fastener import origin, but its CAGR in the past five years was -4.9%, showing that Taiwan's advantage in South Africa in terms of fastener supply has been gradually taken over by its competitors like Italy and Japan.
Table 4. The Trend of Imported Fasteners in South Africa in 2019-2023
Table 5 shows the types of fasteners imported into South Africa in 2019-2023; the values of various types of fasteners imported into South Africa in 2023 were: other iron and steel screws and bolts (US$89.051 million), iron and steel nuts (US$32.892 million), and the above two products accounted for more than 60% of the total import; the imported product with the highest CAGR was: iron and steel self-tapping screws (7.0%), a potential product together with the iron and steel screws and bolts with the highest import value.
In terms of market opportunities, South Africa's fastener-related industries include: traditional automotive and EV industries, renewable energy, medical materials, etc. In terms of policy, the South African government's national infrastructure programs, special economic zones to attract foreign investment, and investment in 21 industries including metal manufacturing and aerospace defense, are all areas of concern for Taiwanese fastener industry.
Table 5. The Types of Fasteners Imported into South Africa in 2019-2023
Morocco
Table 6 shows the trend of imported fasteners in Morocco in 2019-2023. The import value of fasteners in Morocco was about US$133 million in 2023 and the CAGR of import in the last five years was 7.0%. The values of Morocco's top three fastener import origins were: France (US$45.778 million), China (US$16.414 million), Spain (US$14.155 million). The top 10 import origins accounted for more than 90% of the fastener import. French fasteners increased its influence in Morocco, accounting for 34.5% of the total import. Taiwan was Morocco's eighth largest import origin, making it the one among the top 10 import origins with the highest growth rate (23.3%).
Table 6. The Trend of Imported Fasteners in Morocco in 2019-2023
Table 7 shows the types of fasteners imported into Morocco in 2019-2023. In 2023, the values of various types of fasteners imported into Morocco in 2023 were: other iron and steel screws and bolts (US$64.017 million), iron and steel nuts (US$24.356 million). The products with the highest CAGR in the past five years were: iron and steel screw hooks and rings (26.1%) and iron and steel rivets (20.4%), the main potential products together with the other iron and steel screws and bolts showing the highest import value.
In terms of market opportunities, Morocco's fastener-related industries include: traditional automotive, renewable energy (solar and wind power), space, etc.; in terms of policy, the Moroccan government is accelerating the construction of national housing and new towns, and is increasing the port, transportation (high-speed rail and highway) and industrial infrastructure, such as the construction of a new port in Tanger and the FTA, coupled with the fact that Morocco is located in the northwestern of Africa, and even signed an FTA with the U.S. and Europe, making it an important gateway to the EU.
Table 7. The Types of Fasteners Imported into Morocco in 2019-2023
Congo
Table 8 shows the trend of imported fasteners in Congo in 2019-2023. In 2023, the import value of fasteners in Congo was about US$83.797 million and the CAGR of imported fasteners in the past five years reached 36.8%, the highest among African countries. The top three fastener import origins of Congo were China (US$30.936 million), South Africa (US$25.581 million), and Zambia (US$9.095 million). The CAGRs of imports of these 3 countries in the past five years were all in two digits, among which China's import and growth rate were both in the 1st place, while South Africa, the 2nd largest import origin, showed the advantage of nearby supply, though still a tug-of-war with China in the Congo market.
Table 8. The Trend of Imported Fasteners in Congo in 2019-2023
Table 9 shows the types of fasteners imported into Congo in 2019-2023. In 2023, the values of fasteners imported into Congo were: other iron and steel screws and bolts (US$50.192 million), other iron and steel non-threaded articles (US$13.787 million); the imported products with the highest CAGR were other iron and steel non-threaded articles (75.1%) and other iron and steel wood screws (108.1%), but the value of imported wood screws was not high.
In terms of market opportunities, Congo’s fastener related industries include: metal furniture, automobile, machinery, etc.; in terms of policy, due to Congo's weak infrastructure, the Congo government's investment in infrastructure, airports and railroads are all potential demand for fasteners; however, China's involvement in the country's infrastructure is relatively deep, which suppresses Taiwan's potential participation; in addition, due to the increasing proportion of the middle class in Congo, it is recommended that further market assessment of the demand for fasteners for local private sector construction can be made. The demand for fasteners in the local civil construction industry can be further assessed.
Conclusions
Although Africa is not the main import region of global fasteners, the potential is promising. In 2018, 44 African countries signed the African Free Trade Agreement (AfCFTA) to promote Africa's market integration, not only strengthening the economic development, but also promoting trade and investment, tariff reductions and exemptions to help the African manufacturing industry and lead the supply chain. Below are some recommendations:
a. Market Demand： To gain a better understanding of the African fasteners market demand, competitors' layout, growth potential, investment policies, import & export regulations and tariffs.
b. Selecting Potential Countries: Select countries with potential, stable economic growth, and complete infrastructure and logistics hardware, such as South Africa, Nigeria, Egypt, Morocco, Congo, Algeria, etc., for evaluation.
c. Establishing Local Partnerships: As the “AfCFTA” will increase self-sufficiency in the region, reducing dependence on foreign imports, Taiwan fastener industry can cooperate with local experienced and reputed factories in Africa to develop the market to share the risk, enabling them to effectively penetrate into the markets with less entry barriers.
d. Establishing Brand Image Locally: Providing fasteners meeting the needs and consumption power of Africa and establishing a brand image or set up a factory locally if it is cost-effective to do so, in order to reduce costs and improve market feedback.
Copyright owned by Fastener World
Table 9. The Types of Fasteners Imported into Congo in 2019-2023
Exploring Fluctuations
Egyptian Fastener Trade
Introduction
The fastener industry, encompassing products such as screws, nuts, bolts, and rivets, is an essential component of various sectors, including construction, automotive, aerospace, and manufacturing. Egypt, with its strategic location connecting Africa, the Middle East, and Europe, plays a significant role in the global fastener trade. This article delves into the fluctuations in the Egyptian fastener trade, examining the factors driving these changes, the impact on the economy, and the future outlook.
Historical Context
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Egypt's fastener industry has seen notable growth over the past few decades, primarily driven by the expansion of its construction and manufacturing sectors. The country's efforts to modernize its infrastructure, coupled with increased foreign investment, have significantly boosted demand for fasteners. Projects such as the construction of the New Administrative Capital and various transportation infrastructure developments have been key drivers of this growth.
However, this positive trajectory has not been without challenges:
Economic Policies and Market Reforms:
While domestic economic policies have sometimes fostered growth, they have also presented hurdles. Egypt's periodic economic instability and fluctuations in fiscal policies can create an uncertain business environment. The devaluation of the Egyptian pound, while making exports more competitive, has also increased the cost of imported raw materials and components necessary for local fastener production.
Infrastructure and Technological Advancements:
The fastener industry in Egypt often struggles with technological obsolescence. Many local manufacturers operate with outdated equipment, leading to lower productivity and
higher production costs compared to global competitors who invest heavily in modern, automated manufacturing technologies. This technological gap affects the quality and competitiveness of Egyptian fasteners in international markets.
Export Market Challenges:
Despite efforts to penetrate international markets, Egyptian fastener exports have been declining. This trend highlights several issues:
‧ Limited Production Capacity: The focus on meeting domestic demand has constrained the ability to scale up production for exports.
‧ Global Competition: Competing with countries like China and Germany, which have advanced manufacturing technologies and economies of scale, remains a significant challenge.
‧ Quality Perception: In some international markets, Egyptian fasteners are perceived as lower quality compared to those from more industrially advanced countries, affecting their marketability.
Regulatory and Trade Barriers:
Trade policies and regulatory barriers also play a critical role. Protective tariffs can make imported fasteners expensive, benefiting local producers but potentially leading to higher costs for downstream industries that rely on these fasteners. Conversely, the absence of favourable trade agreements can hinder the export potential of Egyptian fasteners, limiting access to lucrative international markets.
Market Dynamics
Egypt's fastener market is characterized by a mix of domestic production and imports. Local manufacturers produce a range of fasteners, primarily for the domestic market, while imports fill the gap for specialized or high-quality fasteners not produced locally. According to the Egyptian General Authority for Investment and Free Zones (GAFI), domestic production accounts for approximately 60% of the market, with imports making up the remaining 40%.
Examining the trade statistics provides insight into the fluctuations in the Egyptian fastener market. Below is the import and export data and analysis for fasteners (HS code 7318) over the past five years.
Import Analysis
Year-by-Year Trends:
Egypt's fastener imports have shown fluctuations that reflect broader economic and industrial trends in the country.
‧ Competitive Pricing: China's ability to offer competitively priced fasteners makes it self a preferred supplier. This pricing advantage is crucial for Egypt, where cost considerations are significant in large-scale infrastructure projects.
‧ Production Capacity: China’s vast production capacity ensures a steady supply of fasteners, which is vital for meeting the high demand from Egypt's expanding construction and manufacturing sectors.
‧ European countries, especially Italy and Germany, provide high-quality fasteners, reflecting a demand for reliable and durable products in sectors where quality cannot be compromised, such as automotive and aerospace industries.
Exporters
Impact of Global Trends:
‧ Steel Prices: The global price of steel, a primary raw material for fasteners, influences import volumes and values. Fluctuations in steel prices can either inflate or reduce import costs, impacting overall trade dynamics.
‧ Supply Chain Disruptions: Geopolitical tensions and global trade policies also affect fastener imports. For instance, any disruption in shipping routes or increased tariffs can influence import costs and availability.
‧ 2019-2020: Imports slightly decreased from USD 137.3 million in 2019 to USD 135 million in 2020. This minor dip could be attributed to the initial impacts of the COVID-19 pandemic, which disrupted global supply chains and led to slower industrial activities.
‧ 2021: The significant dip to USD 118.7 million reflects the pandemic's full impact, as many construction and manufacturing projects were delayed or halted, reducing the immediate demand for fasteners.
‧ 2022-2023: A robust recovery to USD 135.6 million in 2022 and further growth to USD 140.1 million in 2023 suggest a rebound in economic activities. The resumption of infrastructure projects and increased manufacturing outputs drove this demand surge.
Source Country Dynamics:
China's dominance in Egypt's fastener imports (accounting for about 56% in 2023) underscores a few critical points:
Export Analysis
Declining Trends:
The decline in fastener exports from USD 6 million in 2019 to USD 2.6 million in 2023 highlights several challenges:
‧ Production Capacity: Limited production capacity restricts the ability to produce surplus fasteners for export. Egyptian manufacturers may be prioritizing domestic demand over international markets due to production constraints.
‧ Global Competition: Competing against countries with advanced manufacturing technologies and economies of scale is challenging. This competition limits Egypt's ability to expand its footprint in the global fastener market.
Export Destinations:
Spain’s role as the largest importer of Egyptian fasteners suggests targeted niches where Egyptian products meet specific needs. Jordan and Sudan’s positions highlight regional trade dynamics, where geographical proximity and established trade relationships facilitate exports.
Broader Implications
Economic Impact:
‧ Infrastructure Development: The fluctuating import trends closely align with Egypt’s infrastructure development phases. Periods of high import volumes often correlate with peak construction activities, indicating a strong linkage between the two sectors.
‧ Industrial Growth: The fastener trade’s health is a bellwether for overall industrial growth. Increased imports of fasteners typically signal robust manufacturing and construction activities, contributing to broader economic growth.
Employment and Industrial Policy:
‧ Job Creation: The fastener industry, though not labor-intensive, contributes to job creation in manufacturing and logistics. Fluctuations in trade volumes can impact employment levels in these sectors.
‧ Government Policies: To mitigate the decline in exports, government policies could focus on enhancing production capacities, providing incentives for technological upgrades, and exploring new international markets through trade agreements.
Future Prospects
Strategic Initiatives:
‧ Technological Upgrades: Investing in advanced manufacturing technologies can enhance the quality and quantity of domestically produced fasteners, making them more competitive internationally.
‧ Diversification: Diversifying export markets beyond regional neighbours to include more
distant but potentially lucrative markets can help stabilize and grow export revenues.
‧ Sustainable Practices: Adopting sustainable manufacturing practices can open new market segments, especially in regions with stringent environmental regulations.
Monitoring Global Trends:
‧ Supply Chain Resilience: Developing strategies to manage supply chain disruptions, such as establishing buffer stocks or diversifying suppliers, can mitigate the impact of global uncertainties.
‧ Trade Agreements: Negotiating favourable trade agreements can lower tariffs and open new markets for Egyptian fasteners, supporting export growth.
Conclusion
The Egyptian fastener trade, characterized by significant import and export fluctuations, reflects broader economic and industrial dynamics. While imports have rebounded post-pandemic, exports face challenges due to limited production capacity and intense global competition. Strategic initiatives focusing on technological upgrades, market diversification, and sustainable practices can enhance Egypt's position in the global fastener market, ensuring sustained growth and stability.
By leveraging its strategic geographical location and investing in its manufacturing capabilities, Egypt can strengthen its fastener industry, contributing to broader economic development and industrial growth. Continuous monitoring of trade statistics and market trends will provide valuable insights, enabling stakeholders to navigate the complexities of the fastener trade effectively.
Copyright owned by Fastener World / Article by Shervin Shahidi Hamedani
Future of the Fastener Industry in Colombia
The fastener demand in Colombia was predominantly driven by the construction and automotive industries, both of which played crucial roles in shaping the market dynamics.
The Construction Industry: The construction industry, buoyed by substantial government and private sector investments, emerged as a major consumer of fasteners. Infrastructure projects, including:
• Road expansions, bridge constructions, and urban development initiatives, significantly increased the demand for various types of fasteners. A new Colombian road project is commencing. Construction of a new highway in Colombia is expected to cost US$773 million. The road will link Barrancabermeja in Santander Department with Puerto Salgar in Cundinamarca Department. Although the project won final approval in late 2022, construction will commence in 2024.
• Railway: The Colombian government has identified at least six key rail projects, involving total investments of around 32tn pesos (US$7.6 bn), which are considered strategic for the reactivation of the country's rail network.
• Airports: Colombia plans to invest US$2.7 bn in five airports.
INDUSTRY FOCUS
• Additionally, the residential and commercial building segments also contributed to the demand, Colombia's Commercial Real Estate market is anticipated to achieve a significant milestone by 2024, with a projected value of US$0.41 tn. This market segment is expected to maintain a steady growth trajectory, with an estimated annual growth rate (CAGR 2024-2029) of 0.96%. This growth will ultimately lead to a substantial market volume of US$0.43 tn by 2029.
Last Word
The Automotive Industry: On the other hand, the automotive sector, traditionally a significant consumer of fasteners for vehicle assembly and manufacturing, faced a more turbulent period. In Latin America, 5.5 million vehicles were manufactured in 2021, and Colombia remained the fourth-largest producer, with 44,140 units manufactured. In 2021, 250,497 vehicles were sold in Colombia, a 33% increase compared to 2020, and sales are expected to grow an average of 4% annually between 2022 and 2025.
Looking ahead, the future of Colombia's fastener industry appears promising, driven by the ongoing and upcoming developments in the construction and automotive sectors. The construction industry, bolstered by substantial investments in infrastructure projects, will continue to be a major driver of fastener demand.
In the automotive sector, despite recent challenges, the outlook remains positive. Colombia’s position as a key vehicle producer in Latin America and the expected growth in vehicle sales at an average rate of 4% annually between 2022 and 2025 indicate a sustained need for specialized fasteners. As the industry adapts to evolving trends, such as the shift towards electric vehicles and stricter safety standards, the demand for advanced fasteners tailored to these new applications is likely to increase. Overall, the convergence of robust construction activity and a resilient automotive industry positions Colombia's fastener market for sustained growth in the coming years.
Copyright owned by Fastener World Article by Dr. Sharareh Shahidi Hamedani, UNITAR International University
An Outpost for Keeping Up with U.S. Customers' Needs
2024美國拉斯維加斯螺絲暨機械設備展-掌握美國客戶最新需求前哨站
International Fastener Expo (IFE), a B2B trade show in the North American market for manufacturers of fasteners, machinery, tooling and peripheral fastening products, took place on September 10-11, 2024, at the Mandalay Bay Convention Center Halls B & C.
More than 600 booths from 35 countries/regions (including the United States, Belgium, Brazil, Canada, China, Germany, India, Indonesia, Hong Kong, Italy, Japan, South Korea, Malaysia, Mexico, Spain, Taiwan, Thailand, Turkey, the UAE, and Vietnam) came to exhibit a wide range of standard/customized products and services for industrial fastening applications on-site (about 380 international exhibitors), and seize the opportunity to secure sales orders, increase brand awareness and explore more opportunities for cooperation.
Fastener World, the organizer’s exclusive sales agent in Taiwan, also brought 60 exhibitors to exhibit this year, including Chin Lih Hsing, Tone Dar Seen, Kwantex, Chu Wu, Gain Den, Chite, L & W, J. T. Fasteners, Kelly International, Fang Sheng, Mols, Special Rivets, A-Stainless, Excel Components, TIFI, Chirek, Wei I, Rexlen, Bi-Mirth, Taiwan Shan Yin, Aimreach, Taiwan Precision, Katsuhana, Screwtech, Luna's Light, Shiang Ging, J.C. Grand, Link Upon, Dragon Iron, E Chain, Hu Pao, Ji Li Deng, Dicha, Spec Products, Wattson, Dar Yu, Gofast, Meteck, Jungshen, Soon Port, Standing Industrial, Professional Fasteners Development, Apex, Feng Yi, Huang Jing, Shaw Guang, Pingood, Sintec, Mao Chuan, Shyang Sheng, King Point, Linkwell, Ray Fu, U-Ween, J Mo, Ie Perng, KOT, Kenlon, Orimetal, Shin Guang Yin, Locksure, Jeng Yuh, Label One, Vertigo, and Konfu Taiwanese exhibitors also formed one of the major international pavilions this year, along with the others from India and China.
The show attracted executive management, sales and marketing and purchasing representatives from fastener distributors and manufacturers, mostly from industrial, construction, automotive, assembly production and aerospace applications.
In order to promote industry exchanges and market opportunities, the organizer also invited industry professionals to hold a number of industry seminars. These included 9 presentations on topics such as AI, technology trends, fastener finishes, applications and marketing, 4 fireside chats and 2 workshops (now available for online listening on the show’s official website).
IFE Show Director Morgan Wilson said in a media interview: “We had a great golf tournament and a welcome party the day before the show, and the first day of the show went very well! Not only did we have a number of region and industry-specific networking events that everyone could not miss, bringing together professionals from aerospace, automotive and a variety of other industries, but we also had a Espresso Bar offering free coffee. There were also the annual Hall of Fame and Young Fastener Professional Awards, as well as new marketing workshops. We are thrilled with this year’s success and look forward to raising the bar even higher for next year.”
SHYANG SHENG GOFAST
CHIN LIH HSING
CHU WU DRAGON IRON
DICHA
TAIWAN PRECISION
TAIWAN SHAN YIN
TONE DAR SEEN SHIANG GING
According to a market research report, the U.S. remains one of the world's largest importers of fasteners. The U.S. market is expected to show a similar growth trend, given the high demand for automation, aerospace and other related industrial applications in the global market. In addition, due to the rising demand for lightweight vehicles and aircraft, many companies are moving away from standard fasteners to customized products, which will stimulate further growth and expansion of the U.S. market for related fasteners. At a time when the U.S. continues to impose a tariff of at least 25% on Chinese fasteners, Taiwan's high-quality fasteners exported to the U.S. without being affected by anti-dumping duties are bound to show a relatively competitive advantage in the eyes of U.S. buyers.
SINTEC
J. T. FASTENERS
IE PERNG LOCKSURE
SHAW GUANG E CHAIN
“Through participating at this show, we not only met with our existing customers to understand the current local market situation, but also promoted our main products to some unfamiliar customers. Under the influence of the global economic downturn, the most important thing that our customers are concerned about in terms of procurement is not only the competitive price, but also whether the delivery time can meet their demand. Thanks to Fastener World's assistance, our two-day show could go smoothly,” said Ms. Peggy Chang, who exhibited on behalf of J. T. Fasteners at the show. However, there are a few short-term phenomena in the U.S. market that we should pay special attention to. “I observed that the inventory level of U.S. customers is still high,” said General Manager Bill Wang of Hu Pao Industries, also an exhibitor this year.
Taiwan exported about 640,000 tons of fasteners to the world in the first half of this year, of which nearly 300,000 tons (47.1%) were exported to the U.S., an increase of 1.77% over the same period last year. The top exported fasteners included Other Screws, Bolts (73181590), Nuts (73181600), Self-tapping Screws (73181400), and Wood screws (73181200). Manufacturers who are interested in expanding into the U.S. market are advised to develop more customers for these products.
The organizer announced that the next show will be held on September 15-17, 2025 at Mandalay Bay Convention Center Halls E & F. Interested exhibitors are invited to reserve their booths by contacting the sales department of Fastener World, the exclusive sales representative of the show in Taiwan (Email: foreign@fastener-world.com.tw)
Copyright owned by Fastener World / Article by Gang Hao Chang, Vice Editor-in-Chief
GAIN DEN
HUPAO
HUANG JING
CHUN YU
JI LI DENG
J MO
JUNG SHEN
J.C. GRAND
FASTENER FAIR MEXICO 2024
2024墨西哥瓜達拉哈拉螺絲展 建築、車用扣件為洽詢主流
Construction and Automotive Fasteners are the Most Inquired Products
Fastener Fair Mexico, which was relocated to be held the year before last in Guadalajara, a major commercial city in Mexico, was held in conjunction with Expo Nacional Ferretera at Expo Guadalajara from September 5 to 7 this year. About 80 exhibitors registered to participate in the event, and most of them came from China, in addition to a few exhibitors from Mexico and Taiwan. With a total floorplan of 3,000 sq. m, this show was regarded as a more professional exhibition platform for fasteners and hardware products in Latin America and a channel to promote communication and exchange with local buyers.
The exhibitors this year mainly showcased fastening products for automotive, construction & engineering, hardware products, energy-related and mechanical metal processing applications. Fastener World, the show’s exclusive stand sales representative in Taiwan, led six Taiwanese fastener manufacturers, namely Hurmg Yieh Machinery, Kay Tai, Konfu, L&W, Spec Products, and Chi Ning, to exhibit a variety of high value-added and cost-effective products and services, and meet face-to-face with buyers from Mexico and neighboring Spanish-speaking countries. However, perhaps due to the indirect impact of external unfavorable factors such as global political and economic changes or the periodic industrial demand adjustments within the region, the 3-day exhibition attracted about 2,000 visitors according to the show organizer’s statistics. There is still a lot of room for growth in the number of visitors compared to the original expectation.
According to the on-site observation of Fastener World's staff, the visitors coming to Fastener World's booth this year mainly inquired about automotive and construction fasteners, and preferred collaborating with suppliers who have already established a deep-rooted presence in the Latin American markets. In addition, since Spanish is the main medium of communication among local manufacturers, those who are interested in entering the local markets should pay special attention to the availability of professionals who can communicate in Spanish.
In the section on import duty rates, in order to curb unfair competition from countries/regions that do not have a free trade agreement with Mexico, on April 22, 2024, the Mexican federal
government announced another revision of the duty rates on specific product items, including fasteners. Originally, the ad valorem duty rate of the involved fasteners (falling within HS codes 7318.11.01 / 7318.12.91 / 7318.13.01 / 7318.14.01 / 7318.15.04 / 7318.15.99 / 7318.16.06 / 7318.19.99 / 7318.22.91 / 7318.23.02 / 7318.24. 03 / 7318.29.99) was 25% per kilogram. Starting from April 23, 2024 to April 23, 2026, the rate will be temporarily adjusted to 35%.
The organizer has also announced that the next edition will be held on September 4-6, 2025 at the same venue. For more information about this show or if you are interested in exploring the American market, please contact the sales dept. of Fastener World, the show’s exclusive sales representative in Taiwan (Email: foreign@fastener-world. com.tw) for more information.
Copyright owned by Fastener World / Article by Gang Hao Chang, Vice Editor-in-Chief
KAY TAI KONFU CHI NING HURMG YIEH L&W
Fastener Poland 2024 -
The Industry Exchange Platform Closer to Central and Eastern European Buyers
2024波蘭克拉科夫螺絲展- 更貼近中東歐買家的產業交流平台
Fastener Poland, the annual professional event for the fastener industry in Central and Eastern Europe, was held at Expo Krakow on Sep. 25-26. More than 140 exhibitors from Poland, Germany, Italy, China, the Czech Rep., Taiwan, the UK, Turkey, Pakistan, Malta, the U.S., the UAE, Denmark, and India registered for the show, with Taiwan and China being the largest overseas pavilions of the show. The exhibits included industrial fasteners and fixings, building fasteners, assembly and installation systems, fastener manufacturing technology, storage and distribution equipment, and related services.
Krakow, once the capital of Poland, has played an important role in Poland's history and is now one of the country's major business, culture and science centers. Poland's proximity to Ukraine, Germany, the Czech Rep., Slovakia, Belarus, and Lithuania makes it a key hub for trade among countries in Central and Eastern Europe. Coupled with the rapid economic development and GDP growth of Central and Eastern European countries in recent years, the demand for construction and automotive fasteners continues to increase. In the first 8 months of 2024, Poland ranked as Taiwan's 9th largest fastener export partner. Taiwan exported nearly 20,000 metric tons of fasteners to Poland, showing a significant increase of 31.69% over the same period of last year. Poland also had the highest YoY increase among Taiwan's top 10 fastener export partners.
DE HUI LIN-YU GOLD HEAD LOYAL & BIRCH
PERNG RAY FU
TAIWAN
Optimistic about the future economic development of the Central and Eastern European market, Fastener World also led nearly 30 Taiwanese exhibitors to exhibit and exchange with local buyers faceto-face this year, including De Hui, Gold Head, Ie Perng, Lin-Yu, Loyal & Birch, Ray Fu, Shiang Ging, SPEC, Sprout Tooling, Taiwan Precision Fastener, TIFI, Wa Tai, Yuding, Yeswin, Joker, Jiele, Homn Reen, Hoplite, Konfu, Mao Chuan, Riu Fastener, San Yung, Tai Huei, Chite, and Chen Tai. On the first day of the show, many local buyers from Poland came to look for potential exhibiting suppliers. As there were many exhibitors from Taiwan and China this year, it was also more convenient for local buyers wanting to purchase high quality or competitively priced fasteners or even machinery & equipment from Asia. On the first day of the show, the organizer also invited several industry experts to give speeches on market trends.
Although this show is relatively a regional exhibition for the Central & East European market, Fastener World's on-site staff also met visitors from Iceland, the UAE, the UK, and even Ukraine coming to inquire about specific customized products, in addition to inquiries from local buyers. A few Taiwanese exhibitors told Fastener World that they had heard that the Polish market is a new star in the Central and Eastern European market, so in addition to exchanging ideas with local buyers during the show, they also arranged to meet with a few local manufacturers after the show in the hope of bringing more orders back to Taiwan through this business trip. Timo Scholle, Managing Director of Achilles Seibert, a famous fastener importer from Germany, who also participated in this year's show, told Fastener World that it was their first time to participate in Fastener Poland and they hoped to know more about the Polish market and expect more cooperation opportunities.
The organizer has announced that the next edition will be held on Oct. 15-16 at the same venue. For more details about the show, please stay tuned for the latest info at www.fastener-world.com.
Copyright owned by Fastener World / Article by Gang Hao Chang, Vice Editor-in-Chief
ACHILLES
HOPLITE
JIELE
JOKER
KONFU HOMN REEN
CHITE
CHEN TAI
MAO CHUAN YESWIN
TAI HUEI RIU FASTENER
YUDING
Metalex Vietnam 2024-
Countries Still Being Optimistic About Vietnamese Metal Processing Market
Metalex Vietnam is an annual exhibition for precision engineering and manufacturing professionals on metal processing and related equipment applications, and is the more representative exhibition for precision machinery, metal tools and equipment in the South Vietnam region, which was held from October 2 to 4 at S.E.C.C. in Ho Chi Minh City. The theme of the show this year was “FROM LINES TO CYCLE - BUIDLING A CARBON NEUTRAL MANUFACTURING LEGACY”, hoping to offer a one-stop destination for all world-class technology providers and local industrialists to exchange breakthrough ideas and business know-how.
The show this year had a total of 188 exhibitors from 14 countries/regions including Vietnam, China, Japan, Germany, Taiwan, South Korea, Italy, Afghanistan, Hong Kong, India, Malaysia, Singapore, Thailand, and USA. Vietnam, China, Japan and Germany were the major groups of exhibitors. The products on display were mostly about sheet metal working, precision engineering, molds and dies, automation, machine centers, robotic, metrology & testing device, pumps and valves, raw materials handling & storage, welding, surface treatment, painting, chemical, packaging, hand tools, safety equipment, software systems, wires and tubes, jigs, and so on.
The show this year presented lots of latest high-tech precision engineering and machining technologies, attracting
many relevant professionals. According to the observation of our staff on-site, who interacted with some visitors during the 3-day exhibition, this year's visitors were mostly importers and manufacturers from the field of precision metal processing parts, engineering fastening components, and machine tools, whose demand for these products mainly focused on satisfying the local manufacturing industry of Vietnam. Fastener World’s booth was also visited by the purchasing representatives of some leading fastener-related companies such as Böllhoff.
According to statistics, Vietnam relies on imports for more than 70% of its machinery and equipment, and is now the world's 8th largest importer of machine tools. Benefiting from the growth of Vietnam's automobile/motorcycle and consumer electronics manufacturing industries, Vietnam is also a very important export partner for Taiwan's machine tools. Vietnam Association of Mechanical Industries (VAMI) estimates that, from 2019 to 2030 the market demand for machinery will reach about US$310 billion.
The organizer has not yet announced the date and venue for the next edition. For more information, please stay tuned to Fastener World’s website at www.fastener-world.com.
Copyright owned by Fastener World Article by Gang Hao Chang, Vice Editor-in-Chief
EU Fastener Import and Export Statistics for 2023
2023歐盟扣件進出口統計
Fastener Import Statistics
Let’s dive in the changes in demand for fasteners imported by the EU from around the world in the past six years (Figure 1). The trends in import value and import weight are similar. After hitting the bottom in 2020, the import value rebounded by 71.3% to a peak of 8.05 billion euros in 2022. It went downward by 18.9% in 2023 to 6.52 billion euros, and then approached the pre-pandemic level in 2019 (5.42 billion euros). It can be seen that the EU 's fastener import demand reversed downwards after 2022 and was returning sharply to the normal level. The drop margin in 2023 was close to half of the growth rate ranging from 2020 to 2022, so we can speculate that the import demand may completely return to the normal level starting from the end of 2024 to the first half of 2025.
* Target products: HS code 7318 - iron and steel screws, bolts, nuts, washers, etc. The following tables are in descending order by weight in 2023.
Fig 1. EU's Total Fastener Import Value (Euro) & Quantity (Kg) with the World in the Past 6 Years
Table 1. EU Fastener Import Value and Weight in the Past Three Years (By Country)
Fastener Export Value (Euro) & Quantity (Kg) with the World in the Past 6 Years
were China, Taiwan, Turkey, India, and Vietnam. China and Taiwan remain each other's main rivals in the European market. Interestingly, as the global visibility and importance of the South Asian and Southeast Asian markets have greatly increased since last year, India and Vietnam are among the top five in the rankings, and Thailand is the sixth. These three countries are currently highly potential markets for fastener investment.
It should be noted that Figure 2 shows EU's demand for fasteners from Taiwan and China declined significantly in 2023, and its demand for fasteners from Vietnam, India and Turkey has also declined, but the demand for fasteners from Thailand has steadily increased.
Fastener Export Statistics
Changes in EU's global exports of fasteners in the past six years (Figure 3) show that export value and export weight have divergent trends. After hitting bottom in 2020, the export value rebounded to a peak of 5.57 billion euros in 2023, up 29.0%, far exceeding the level in 2019 before the pandemic (4.80 billion euros). It is worth noting whether EU's fastener export value will reach a new high in 2024. The export weight continues to swing between the 5.6 billion and 6.5 billion euro mark. Overall, the changes are not significant, and it is not much affected by dramatic changes such as the pandemic.
As shown in Table 2 , EU's top ten fastener export destinations in the past three years were the U.S., China, UK, Mexico, and Turkey. The U.S., China and UK were the primary competitors for each other in the European market. Besides exporting to advanced countries, quite a portion of EU fasteners were also exported to emerging countries such as Mexico, Turkey, Brazil, and India.
Figure 4 shows that the weights of fasteners exported by the EU to the U.S., China, UK, Switzerland, Brazil, and Norway all decreased in 2023. On the contrary, a relatively larger increase for three consecutive years existed in the weights of exports to Mexico and Turkey, and a relatively smaller increase for three consecutive years existed in the weights of exports to India and Morocco.
Figure 4. EU's Fastener Export Weight in the Past 3 Years (By Country)
Figure 5 Comparison of
Comparing Fastener Import and Export Values
Comparing EU 's fastener import and export values in the past six years ( Figure 5 ), it is not hard to find that EU fasteners are mostly importoriented. The import and export values both bottomed out in 2020, but the difference is that the import value rose sharply through 2022 and peaked in that year before trending downward in 2023, while the export value rose steadily and relatively slightly after hitting the bottom and then continued hitting highs through 2023.
Should I Have My Lab Accredited to ISO/IEC 17025?
您的實驗室是否該有ISO/IEC 17025認證?
In 1993 the Automotive Industry Action Group (AIAG) established guidelines for the Production Part Approval Process, commonly known as PPAP. In those early days, the PPAP process was little more than a couple of pages of dimensional and performance test verifications. Thirty years later, a PPAP submission has transformed into a 20 to 30mm thick package full of verifications, certifications, and quality plans. Since many of those documents require some sort of lab or testing verification, the authors of PPAP became concerned about the veracity and quality of the results. For this reason, later revisions to PPAP would include a requirement (Section 2.2.12) that all inspection and testing is conducted by a qualified laboratory.
This is just one example of the importance of having a universal standard available that provides both users and customers guidelines on proper procedures and processes to competently run a laboratory or testing operation that provides consistent and reliable results. Thus, enter ISO/IEC 17025 onto the international stage.
ISO/IEC 17025 is the logical evolution of the third (1990) edition of ISO Guide 25. In essence, the new 17025 standard incorporated the Quality Management System principles of ISO 9000 with the technical lab competency requirements of Guide 25. ISO/IEC 17025 has evolved several times since its introduction in 1999. The standard was revised a second time in 2005 to become more aligned with the 2000 revision of ISO 9001 and then again in 2017 to align it with the 2015 version of ISO 9001.
Why is an Accredited Lab Important?
The simple answer to the question is that having a universally accepted standard for laboratory and calibration services gives consumers confidence in the products they are purchasing because testing and verification is done by competent and qualified laboratory sources. This accreditation emphasizes that the lab is using best and consistent technical practices, employs well-trained and competent team members, has verification steps that are traceable back to an established reference, emphasizes continuous improvement practices, and is obtaining accurate, repeatable, and consistent results. Labs that have taken the initiative to rise to the level demanded by this standard and meet its requirements are truly the best in-class. Manufacturers that have an inhouse accredited lab or only use accredited labs are able to stand apart from those that do not.
Highlights of ISO/IEC 17025:
ISO/IEC 17025 can be viewed in two parts, a laboratory Quality Management System (QMS) and a technical guide for the tests, processes, and activities conducted by the laboratory. Although different from ISO 9001, many of the QMS aspects of ISO/IEC 17025 are similar or identical to ISO 9001 requirements.
INDUSTRY FOCUS
The ISO/IEC 17025 standard is broken into eight sections. They are:
1. Scope
2. Normative References
3. Terms and Definitions
4. General Requirements
5. Structural Requirements
6. Resource Requirements
7. Process Requirements
8. Management System Requirements
The first three sections are common to many standards. The “Scope” is important because it acts as an executive summary and tells the user what the standard is intended to cover and often what it may not cover. The term “normative” means related to or derived from a standard. Therefore, the second section is a list of any standards that the ISO/ IEC 17025 standard may reference within its body. There are, in fact, only two standards cited. These contain additional information that may be helpful to the users of this standard. Finally, section three defines a series of terms that are used throughout the standard. A definition section can be extremely helpful because it can educate users on the meaning of terms they may not know or establish a baseline for terms that may have multiple meanings or ambiguity in the marketplace.
Section 4 is the “ General Requirements ” section. This section addresses two important concepts related to testing labs; impartiality, and confidentiality. Testing labs must be impartial, even if they are an in-house department of a larger organization. The purpose of a test is to without bias assess whether a part meets a requirement or
not. It is critical that lab personnel be able to do this without bias or fear of retribution should results be deemed unfavorable. In a similar vein, often multiple customers may be using a lab, and they must have confidence that the lab is not sharing their test results with other parties. Therefore, labs must have strict policies regarding confidentiality and the safeguarding of their customers’ information and data.
Section 5 is titled “ Structural Requirements” This section defines requirements about the way a lab is set up. It gives requirements for organizational structure, management, and personnel. Most importantly, this section defines requirements emphasizing that the lab has managers and personnel that are aware of what is going on and have authority to conduct the multitude of actions necessary for everyday business.
Section 6 is “ Resource Requirements” . This section is full of requirements that direct the lab to have the necessary resources to properly and efficiently conduct the activities of the lab. This means that they are required to have the right people in-place, proper conditions and facilities, the right equipment, traceability (measurement results are traceable back to a known reference standard), and that externally provided products and services are available and controlled when necessary.
Section 7 is “ Process Requirements” This is the technical section of the document and lays out many requirements for the processes that are necessary from the start to the finish of getting each test sample properly and accurately evaluated, recorded, and results communicated back to the customer.
The final section, Section 8, is “Management System Requirements” . This section is the primary bridge to either ISO 9001 or a QMS with similar attributes. This section defines two options; A and B. Option B is for a lab that already has a QMS certified to ISO 9001 (or an equivalent). Option A is for a lab that does not have a registered QMS and sets out some minimum requirements that are otherwise included in an ISO 9001 system. These include:
• That the QMS has certain documentation such as documented policies and procedures.
• That documents, when necessary, are controlled.
• That records, when necessary, are controlled.
• That risks and opportunities are considered, and appropriate actions taken when deemed necessary.
• That the organization is engaged in improvement activities.
• That the organization has a corrective action process.
• That the organization undertakes internal audits.
• That the organization conducts regular management review.
Who Should Have ISO/IEC 17025?
This is a question that every organization must ask themselves and the answer will depend on individual circumstances. Therefore, there is no right or wrong answer. However, in my opinion, any fastener organization that is routinely engaging in metrology, testing, or calibration activities will be much stronger and better with an ISO/IEC 17025 accreditation, than without one.
How do You Get Registered?
On the surface, registration can seem like a daunting task. However, the old adage about “how do you eat an elephant- one piece at a time” is probably the most appropriate answer. It is a process that an organization must take one step at a time. There are many resources that can be obtained to assist in this process from simple guides to hiring an expert consultant. Whichever approach is taken though essentially involves developing the system, assessing the system for gaps, fixing these, proving the system out, and then hiring a registrar partner to come in and independently assess and critique the system.
Once registered to ISO/IEC 17025 the registrar will continue to conduct routine assessments to make sure that your system is maintaining compliance. Usually, these repeated audits will identify gaps not previously discovered or that have gone off-track since the last assessment. As such, these repeated audits should not be seen as burdensome but rather as opportunities to continue to improve the laboratory.
Wrap-up:
Not every fastener organization needs an ISO/IEC 17025 accredited laboratory, however, for organizations that want to be best-in-class, to offer their customers a higher level of value, or engage in a large volume of testing or calibration, having accreditation makes a great deal of sense. ISO/IEC 17025 truly makes a difference and effectively provides confidence that tests, dimensional verifications, and calibrations are being done in a way that they are accurate, traceable, and consistent.
Copyright owned by Fastener World / Article by Laurence Claus
Brazil in Figures— Fastener, Automobile, Construction, GDP, PMI
There are about 4,000 fastener manufacturers, traders and retailers in Brazil, of which there are about 200 manufacturers. Among them, the top three fastener manufacturers have a monthly production capacity of more than 6,000 tons. Most of these manufacturers are located in states such as Sao Paulo, Rio Grande do Sul and Santa Catarina.
Most of the screws, bolts and nuts circulating in Brazil are used in automobiles, construction, furniture, machinery and other industries. In particular, the number of cars in Brazil exceeds 40 million, and the demand for car production and maintenance is high. It is worth noting that China has been accelerating its expansion into the Latin American market, including Brazil, in recent years, and China's vehicle market share is shaking the dominance of General Motors and Volkswagen in Brazil. These signs provide background conditions for Brazil's increased demand for fasteners.
This article combs through Brazil's Customs data and compiles for readers the import and export statistics of Brazil's main fasteners in the past five years. It will lead you to peek into Brazil's demand changes. It also collects Brazil's automobile and construction demand data, as well as industrial and economic data on GDP and PMI, providing you with a reference for considering investment in the Brazilian market.
Fastener
Import »
Fig. 1. Brazil's Fastener Import Values from the World (Unit: USD)
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
Value Year
806,808,846
Data source: Comexstat
Let’s review the growth and changes in Brazil's fastener trade in the past five years. From 2019 to 2023, the country's fastener import value ( Figure 1) increased from US$806,808,846 to US$921,454,730, up 14.2%. Except for a 19.1% decline in 2020 when the pandemic broke out, the rest of the years have been positive growth. It is worth noting that the growth rate from 2020 to 2022 was the highest in the past five years, reaching 53%, showing that Brazil's demand for global fasteners surged during the worst times of the pandemic. Another point to note is that when the pandemic in many countries ended in 2023, Brazil's fastener import value fell back to the level close to 2019. Overall, in the past five years, the amount of fasteners imported by Brazil from around the world experienced sharp declines and surges, and then returned to the normal level. The import value in the first half of 2024 was US$501,979,151, accounting for 54.4% of last year's total. The import value of the whole 2024 has a chance to to exceed that of last year.
Copyright owned by Fastener World / Article by Dean Tseng
Table 1. Top 5 Import Sources for Brazil's Fasteners (Unit: USD)
Fig. 2 Top 5 Import Sources for Brazil's Fasteners (Unit: USD)
(Jan-June)
Data source: Comexstat
Table 1 and Figure 2 show that Brazil’s top five fastener import sources in the past five years were China, the U.S., Germany, Japan, and Italy. Last year, China's fastener share accounted for 23.9%, the U.S. accounted for 19.5%, Germany 8.9%, Japan 8.1%, and Italy 7.7%. Although a large number of low-price fasteners were imported from China, a total of 44.2% of European, American and Japanese fasteners were also imported from Germany, Japan and Italy. The value of fasteners imported by Brazil from the U.S. continued to grow last year, while the amounts of fasteners imported from China, Germany, Japan, and Italy all decreased last year.
Figure 3 shows the top five HS codes of fastener products with the highest import values in Brazil (see Table 2 for other product codes). Last year, the total import market size of these 12 HS codes in Brazil was approximately US$921 million. The import value of HS code 731819 increased slightly last year, while the import values of HS codes 731822, 731816, 731829, and 731815 all declined last year. In the first half of 2024, the total of these five HS codes has reached 54.4% of last year's total, and there is a chance that this year will surpass last year's scale.
Export »
In the past five years, Brazil's fastener export value ( Figure 4 ) dropped from US$180,725,098 to US$170,326,934, a decrease of 6.1%. After falling 28.5% in 2020, when the pandemic broke out, it increased 31.8% in the following three years, almost returning to the level of the pre-pandemic in 2023. The export value in
Fig. 3. Brazil's Fastener Import Values from the World (By HS Code, Listing Only the Top 5, Unit: USD)
Fig. 4. Brazil's Fastener Export Value to the World (Unit: USD)
the first half of 2024 was US$72,378,922, accounting for 42.4% of the total export value in 2023. This year's total export value is likely to be close to last year's.
Comparing Figures 1 and 4, we can find that Brazil's fastener import value has been greater than its export in the past five years. The country's fastener import demand is greater than its export demand.
Table 2. Brazil's Fastener Import Values from the World (By HS Code, Unit: USD)
731815
Threaded screws and bolts, of iron or steel, whether or not with their nuts and washers (excl. coach screws and other wood screws, screw hooks and screw rings, self-tapping screws, lag screws, stoppers, plugs and the like, threaded)
Table 3 and Figure 5 show that Brazil’s top five fastener export destinations in the past five years wee Argentina, the U.S., Paraguay, Germany, and France. Last year, Argentina's share accounted for 30.4%, the U.S 20.8%, Paraguay 8.7%, Germany 4.6%, and France 4.4%, showing that Brazilian fasteners were mainly sold to North and South America, followed by Europe. However, it is worth noting that Brazil’s export of fasteners to the U.S. reached a peak of US$77.37 million during the US-China trade war in 2019. Then, it declined sharply when the pandemic broke out the following year, and was preceded by the export to Argentina in 2021 when the pandemic became the worst and then onwards to this day.
Table 3. Top 5 Export Destinations for Brazil's Fasteners (Unit: USD)
As shown in Figure 6, the total import market size of these 12 HS codes in Brazil last year was approximately US$170 million. Except for HS code 731819, the export value of other HS codes has begun to increase in the past three years. In the first half of 2024, the total of these five HS codes has reached 42.4% of last year's total, which has a chance to exceed last year's scale or be equal to it.
Automobile
Figure 7 is a chart of Brazilian automobile production trends over the past nine years up to the first half of 2024. Brazil has experienced two sharp declines during this period, one in 2016, and the other in 2020 when the pandemic broke out. It fell to about 150,000 vehicles in 2016, dropped to nearly zero in 2020, and rebounded to about 2.4 million vehicles in 2021. It has been fluctuating back and forth from 2021 to 2023, and in the first half of 2024 it has returned to the level of 2021. Overall, Brazil's automobile production has averaged between 170,000 and 230,000 units over the past nine years. The Brazilian car sales in Figure 8 also reflect a similar trend.
Housing
From 2015 to 2019, the Brazilian housing index (Figure 9) has stayed at around 130 points. The turning point occurred after 2020. Up to the first half of 2024, the
Table 4. Brazil's Fastener Export Values to the World (By HS Code , Unit: USD)
whether or not with their nuts and
(excl. coach screws and other wood screws, screw hooks and screw rings, self-tapping screws, lag screws, stoppers, plugs and the like, threaded)
Data source: Comexstat
Source: tradingeconomics.com | ANFAVEA, Brazil
index increased significantly by 25%, reaching 163 points, showing stable positive growth for 4.5 years, and there is even a good chance of continued growth until the end of this year. In addition, Brazil launched a new version of its Accelerated Growth Plan last August, planning to invest 371 billion Brazilian dollars through the national budget within four years to drive domestic infrastructure investment. These signs indicate that the demand for Brazilian construction fasteners and the fastening tools required for them still has significant growth potential in the foreseeable future
GDP & PMI
The annual growth rate of Brazil's GDP ( Figure 10 ) fluctuates greatly. According to calculations by FocusEconomics, on a 10-year average, the average annual growth rate is 0.6%. Although it does not seem high, it can be observed through the orange bar chart that the GDP continued to increase from 1996 to the first half of 2024.
The Brazilian PMI (Figure 11) has been swinging back and forth over the past decade. Although it bottomed out during the pandemic and then surged, it returned to the average level after the pandemic. The good news is that the latest data from S&P Global shows that Brazil's manufacturing PMI rose to 52.5 in June from 52.1 in May this year, reflecting the rapid growth in output, purchasing and inventories.
Source: tradingeconomics.com | Banco
Fig. 8 Brazil's Total Vehicle Sales Vehicles
Fig. 7 Brazil's Car Production Vehicles
Research on Steel for Lock Washers and Bainite Transformation (Part 1)
防鬆墊圈用鋼和貝氏體轉變的研究(上)
1. Introduction
Anti-loosening washers are required in threaded connections. These are mainly double-layer self-locking washers, tapered washers, spherical washers, spring washers, etc., as shown in Figure 1 (hereinafter referred to as washers).
Washers are mostly made of spring steel and must be heat treated. The heat treatment process is similar to that of springs, but there are also differences due to the particularity of mechanical property requirements. Therefore, the finished product is required to have a higher elastic limit, yield-to-strength ratio and fatigue strength, as well as sufficient plastic toughness. The common materials for washers are carbon structural steel and low alloy spring steel, with approximately 0.50% to 0.75% carbon. A large number of early washer failure analysis results show that more than 80% of failures are caused by scratched appearance, crushing, bending, oxide scale residue, rust spots, surface decarburization, surface corrosion, non-metallic substances in steel, uneven quenched structures, and hydrogen-induced delayed fracture, mainly due to high stress concentration at the defective locations.
It is necessary to briefly discuss the research on steel for washers and bainite transformation, in order to look at ways to increase elasticity on the basis of improving strength, toughness and contact fatigue performance, select new steel types, strengthen heat treatment process or bainite austempering technology.
Figure 1. Washers
2. Spring Steel Grades for Producing Washers
The majority of washers are produced using structural steel (spring steel), and the chemical compositions of commonly used grades are shown in Table 1
Table 1. Chemical compositions of commonly used spring steel grades for producing washers (quality grade, W%)
Spring steel has excellent strength, toughness and ductility, its processing is simple and its production cost is low. To obtain a bainite structure with enough hardenability during the continuous cooling process, it is usually necessary to add alloy elements to spring steel, such as B, Si, Mn, Cr, Nb and Mo. As an important part of washer production, heat treatment has been an important aspect in studying the theory of accelerated phase transformation of bainite in recent years. It has an important impact on the morphology, quantity and size of bainite. Research shows that austenitizing temperature affects phase transformation, and the original austenite phase with different grain sizes can be obtained through different quenching temperatures, thus affecting the transformation of bainite. The transformation temperature of bainite is 550 ℃ ~ Ms, divided into upper bainite and lower bainite. The hardness of upper bainite is lower and the toughness against impact is lower. Try to avoid the formation of upper bainite structure in the washer; the temperature to form lower bainite is 350 ℃ ~ Ms with grains smaller than upper bainite’s, higher dislocation density, very small internal ferrite particles, and a large number of precipitated fine dispersed ε-carbides. The precipitation of this material plays a good dispersion strengthening effect on the lower bainite, so lower bainite steel has high strength, good toughness, and excellent comprehensive mechanical properties.
3. Mesh Belt Type Atmosphere Heating Furnace
3.1 Heating Furnace
Mesh belts continuously feed washers into the atmosphere heating furnace. There is a flame curtain at the front opening of the atmosphere heating furnace to isolate the outside air from the air inside (the air in the furnace is generally called "atmosphere"). The rear end of the heating furnace is sealed with a salt curtain and liquid salt. The first step in lower bainite austempering heat treatment is to heat the washer to about 860 °C. In order to dissolve all the spheroidized carbide in the washer, it needs to be kept at a temperature above 760 ℃ (Ac1) for at least 15 minutes. Atmosphere heating furnaces generally use electric or natural gas to heat up. Most heating furnaces are divided into 4 heating zones, which are controlled separately. The temperature in zone 1 is set at 830 °C, the temperature in zone 2 and zone 3 is set at 850 °C, and the temperature in zone 4 is set at 840 °C. The temperature in zone 1 is set at 830 °C to quickly heat washers to the set temperature. The temperature in zone 2 and zone 3 is set at 850 °C to dissolve all carbides. The temperature in zone 4 is set at about 840 °C to ensure that washers are are above 760 °C before entering the quenching salt solution; that is, in order to avoid the cooling C curve with no pearlite transformation, and thus ensuring that the washers are still austenite before entering the salt solution.
3.2 Controlled Atmosphere
Spring steel washers will oxidize and decarburize under high temperatures. Therefore, it is necessary to build up an atmosphere with a certain carbon potential in the furnace to avoid high-temperature oxidation and decarburization. The control of carbon potential is relatively complex. Problems such as water vapor mixed into the furnace, poor sealing, air leakage in the thermocouple mounting holes, cracks in the furnace body, blockage of gas pipelines, etc., may lead to out-of-control carbon potential. It is particularly difficult to solve the problem of water vapor mixed in the furnace. It can only be eliminated by stopping the furnace and reheating the oven at a low temperature.
The method of preparing a controlled atmosphere is to use nitrogen, methanol, and propane as enriched gases. Methanol will crack into hydrogen and carbon monoxide at high temperatures. Liquid methanol is directly dropped into the furnace, and a chemical reaction occurs: CH 3 OH → 2H 2 + CO. Nitrogen is directly introduced into the furnace, and the flow rate of methanol and nitrogen is adjusted, thereby adjusting the proportions of various components of the atmosphere.
At the working temperature of about 860 ℃ in a mesh belt furnace, the carbon potential of spring steel’s basic atmosphere is set at 0.60% C. For example, 65Mn steel has a lower carbon content limit of 0.62%, and the carbon content of the washer material is slightly higher than the basic carbon potential of 0.60% C, so in
addition to basic atmosphere nitrogen methanol cracking, a certain amount of enriched gas needs to be introduced into the furnace to increase the carbon potential of the atmosphere. Propane is selected as the enriched gas. Both endothermic atmosphere and nitrogen-methanol are feasible methods for controlled atmosphere technologies.
3.3 Isothermal Salt Bath Quenching
When washers are dropped from the high-temperature heating furnace into the salt bath, they must be instantly cooled from 860 °C in the heating furnace to the quenching temperature of 300 °C. When cooled in a salt bath and quickly passing through the "nose tip" of the C curve, supercooled austenite does not undergo structural transformation in advance. In this case, continuing to cool down in a salt bath or the air when the temperature drops below 350 °C, the supercooled austenite begins to undergo lower bainite transformation; any delay may lead to incomplete quenching; that is, the cooling does not avoid the C curve, but passes through the C curve, and the austenite re-transforms into a pearlescent body instead of resulting in a lower bainitic structure. After austenite transforms into proeutectoid ferrite + pearlite, it is similar to the spherical pearlite of the raw material, having low hardness and low mechanical properties, and must be avoided. Therefore, the design going from the heating furnace to the hopper of salt bath quenching tank is the key to the entire lower bainite isothermal quenching heat treatment line. It is necessary to ensure that washers can quickly drop into the salt bath in the tank, while ensuring the air tightness of the atmosphere in the furnace.
The salt bath’s temperature in the salt bath quenching tank determines the hardness of washers after heat treatment. Since different sizes of washers have different hardness requirements, it is necessary to set the salt temperature according to the hardness value of different washers. Generally speaking, 1 ℃ will result in about 0.1HRC, which means that if the salt temperature is increased by 1 ℃, the hardness will decrease by 0.1 HRC; lowering the salt temperature by 1 °C will increase the hardness by 0.1HRC. For washers made of 51CrV4 and 65Mn, the salt bath quenching isothermal treatment time is at least 60 minutes.
Continuing from Part 1, Part 2 will appear in Jan. 2025 issue of Fastener World Magazine. Stay tuned!
Copyright owned by Fastener World / Article by Hsien Ming Chang
Potential Fastener Market: Saudi Arabia
SaudiArabia has a population of 35.3 million, and the nation's economic landscape is robust and diverse. The GDP, measured at purchasing power parity (PPP), stood at an impressive US$2.2 trillion, reflecting a remarkable growth rate of 8.7% in 2023. Over the past five years, the average growth rate has been a steady 2.4%, contributing to a high per capita income of US$66,836. Despite this economic vigour, the country faces a 7.4% unemployment rate, highlighting ongoing challenges in the labour market. Inflation, however, remains controlled at 2.5%, suggesting stable consumer prices. Foreign Direct Investment (FDI) inflow reached US$7.9 billion, indicating a strong international investment appeal. The public debt is relatively low, comprising 23.8% of the GDP, positioning the nation favourably in terms of fiscal health. Saudi Arabia, a cornerstone of the Middle East, is undergoing a transformative economic and industrial revolution. This metamorphosis is creating a burgeoning market for fasteners, components essential to construction, manufacturing, and automotive sectors.
The Saudi Arabian Landscape
Saudi Arabia's economy is undergoing a profound shift, driven by “Vision 2030”, a comprehensive plan aimed at diversifying the economy beyond oil. This ambitious initiative is fuelling investments in various sectors, including infrastructure, manufacturing, and renewable energy. Consequently, the demand for fasteners, of construction and industrial projects, is on the rise.
Key Drivers of Market Growth
The Scale of the Opportunity
To put the fastener demand in perspective, consider these figures:
Total construction value: Saudi Arabia's construction sector is projected to reach US$250 billion by 2025.
Fastener consumption per project: A typical construction project can consume anywhere 150 kilograms of fasteners per square meter. (In a typical 100 square meters house, the use of fasteners, including nails and screws, is substantial. For instance, around 44,120 nails and 1,076 screws are estimated to be used. When converted to weight, these figures amount to approximately 145.59 kilograms of nails and 4.85 kilograms of screws, totalling about 150.44 kilograms of fasteners.
Some of the mega projects of construction in Saudi Arabia are:
1- Mega Infrastructure Projects: Saudi Arabia is undertaking massive infrastructure projects, such as the futuristic NEOM city, which requires a vast array of fasteners for buildings, bridges, and transportation systems.
• NEOM, The Epitome of Fastener Demand: NEOM, a planned US$500 billion megacity, stands as a testament to Saudi Arabia's audacious vision. Envisioned as a hub for innovation and technology, NEOM will require an estimated 4 million metric tons of fasteners during its construction phase alone. This staggering figure underscores the scale of the fastener demand generated by such projects. Estimating the total amount of fasteners needed for the NEOM project is a complex task due to its immense scale and the variety of 潛在扣件市場-沙烏地阿拉伯
INDUSTRY FOCUS
construction types involved. NEOM encompasses several ambitious projects, such as THE LINE, Oxagon, and Trojena, with a construction workforce expected to exceed 200,000 by next year. For a standard residential building, approximately 1.5 kg of fasteners are required per square meter. Given NEOM's extensive construction area, if we assume that 10% of its 26,500 square kilometer area (2,650 square kilometers or 2.65 billion square meters) is actively under construction, this leads to an estimated need for around 3.975 billion kg of fasteners. This estimate illustrates the massive scale of resources needed for NEOM, emphasizing the project's unprecedented demands on construction materials and labour (WIRED Middle East1) (NEOM: Made to Change2).
• Beyond NEOM: Other megaprojects across the kingdom are driving substantial fastener demand:
o Red Sea Project: This luxury tourism development will encompass over 50 islands and require extensive construction, including hotels, resorts, and infrastructure.
o Qiddiya: Positioned as a global entertainment, sports, and culture hub, Qiddiya will feature theme parks, sports stadiums, and residential areas, all of which will necessitate a vast array of fasteners.
o Riyadh Metro: This ambitious public transportation project alone is expected to consume thousands of tons of fasteners for its tracks, stations, and supporting structures.
2- Manufacturing Boom: The government's focus on industrialization is leading to the establishment of manufacturing hubs across the country, boosting demand for fasteners in various industries. Some manufacturing project in Saudi Arabia are:
• Automotive Industry Growth: The expanding automotive sector, both in terms of production and sales, necessitates a steady supply of fasteners for vehicle assembly and repair. Saudi Arabia's automotive sector is experiencing a period of robust expansion, driven by a combination of factors including rising incomes, a growing population, and government initiatives to stimulate domestic manufacturing. This surge in automotive activity has created a significant demand for fasteners, essential components in vehicle assembly and repair.
o Booming Vehicle Sales: New car sales in Saudi Arabia have witnessed substantial growth in recent years. Saudi Arabia Motor Vehicles Sales recorded 758,791 units in Dec 2023, compared with 616,491 units in the previous year. Saudi Arabia Motor Vehicles Sales is updated yearly, available from 2005 to 2023, with an average number of 562,900 units.
o Domestic Manufacturing: The Saudi Arabian government is actively promoting the development of a domestic automotive manufacturing industry. Initiatives like the National Industrial Development and Logistics Program (NIDLP) aim to attract global automotive manufacturers to set up production facilities within the country. This localization push will further amplify the demand for fasteners.
o Aftermarket Growth: The existing vehicle fleet in Saudi Arabia is also expanding, leading to a thriving afterma rket for spare parts and repairs. This segment creates consistent demand for a variety of fasteners used in vehicle maintenance and repair operations.
• Renewable Energy Push: Saudi Arabia's commitment to renewable energy involves constructing solar and wind farms, creating opportunities for fastener manufacturers in this sector.
Last Word
The Saudi Arabian fastener market is poised for substantial growth, driven by the country's ambitious economic transformation. While challenges exist, the
opportunities are immense for businesses that can navigate the market effectively. By understanding the market dynamics, addressing challenges proactively, and leveraging strategic partnerships, companies can position themselves for success in this promising market. While the Saudi Arabian fastener market presents immense potential, several challenges must be addressed:
• Supply Chain Disruptions: Global supply chain vulnerabilities can impact the availability and cost of raw materials and finished products.
• Competition: The market is becoming increasingly competitive with both domestic and international players vying for market share.
• Localization Requirements: To succeed, businesses may need to establish local production facilities or partnerships to comply with government regulations.
• Quality Standards: Adherence to stringent quality standards is crucial for gaining customer trust and market share.
Despite these challenges, the opportunities are abundant:
• Localization and Value Addition: Businesses can capitalize on the government's focus on localization by setting up manufacturing facilities or assembly plants.
• Technological Advancements: Adopting advanced technologies for production, quality control, and supply chain management can provide a competitive edge.
Copyright owned by Fastener World / Article by Behrooz Lotfian
Why Should I Upgrade My Quality Management System to Comply with IATF16949?
如何升級品管系統以符合 IATF16949要求?
Everyone is aware of the tragic events of April 14, 1912. This is the night that the White Star Line’s “unsinkable” ship Titanic struck an iceberg and sank, taking more than 1500 souls to a premature watery grave. For years the belief was that the iceberg tore a long gash through the ship’s hull causing it to take on water and sink. After the wreck was “discovered” in September of 1985, multiple investigative explorations would follow. On several of these, researchers sought to determine how the ship sank. To their surprise no gash was found, but they did locate multiple vertical openings of the hull plates in the area believed to have impacted the iceberg.
Now this is a very interesting mystery, but what does it have to do with modern day industrial Quality Management Systems (QMS)? To cut to the chase, scientists at the US National Institute of Standards and Technology (NIST) probed this mystery and came away with a very compelling theory. Lead researcher, Timothy Foecke, discovered that the wrought iron rivets used to attach the bow and aft hull plates were substandard. He discovered that many of these rivets contained high amounts of slag, entrapped exogenous inclusions that weaken the strength and metallurgical toughness of the iron. A simple interpretation, the parts were weak and not capable of performing at the level they were expected to. Foecke theorized that when the ship struck the iceberg, the impact forces were such that they caused the rivet heads to separate, opening the hull plates allowing water to flood into the Titanic and cause her to sink.
At this point you may still be asking about how this has anything to do with a quality system. As part of his project Foecke engaged a social scientist/historian, Jennifer McCarty, to investigate if there was any explanation for these substandard parts. Remarkably, records from Titanic’s Irish ship builder Harlan and Wolfe divulged that they had experienced significant wrought iron rivet shortages during the period they were building the Titanic. To address this problem, they made two fateful decisions. First, they declared that the rivets could be produced from Number 3 “Best Quality” bar instead of the traditional Number 4 “Best-Best Quality” bar. Secondly, they increased their supply base by opening their doors to multiple small and unknown forges. It is highly likely that one or more of these new, but not really vetted suppliers produced rivets that were substandard and incapable of holding up to the rigors experienced during the collision.
Today, these cavalier manufacturing practices would simply not be allowed for any organization that claimed to abide by a modern-day, registered QMS. Had Haran and Wolfe had a robust QMS, like ISO 9001 or IATF 16949, it is possible that the wrought iron rivets would have been stronger and maybe resulted in fewer or no hull plates separating. For this reason, this makes the Titanic a compelling example of why a QMS is so crucial to today’s manufacturing businesses.
So, what is a Quality Management System (QMS)? It is a little unfortunate that the first word in the title is “Quality”. This is not because it is wrong, quite the contrary these systems are all about making good quality parts. In my opinion the problem this instills is that many read the word “quality” and immediately think it is a program that belongs only to the “Quality Department”. Nothing could be more wrong because a company’s QMS is simply about the way a company goes about their business. As such, every company has a QMS. Not every company, however, has a registered QMS to an industry standard such as ISO9001 or IATF 16949. In fact, the subject of this article, IATF16949, is an automotive industry specific QMS that adds an additional 277 requirements above the 135 contained in ISO 9001. Therefore, IATF16949, like its foundation, ISO 9001, is a standard that dictates the minimum system requirements that a company should have in-place to receive recognition and certification.
Unless a customer requires it (and some do), companies do not need to be certified, but those that do achieve registration are easily recognized by potential and current customers as a step above those not registered.
Now that we understand that IATF 16949 is a standard which sets forth some minimum capabilities and requirements to achieve registration, what is its fundamental underlying philosophy? For the last century or more, the traditional way of thinking about quality is that “parts are fine as long as they stay within a defined set of limits.” Another way of saying this is that parts are good if they are “in specification. To gauge this, we must thoroughly investigate finish parts to “detect” when one is bad. In many industries this may actually be a suitable strategy, but it does create challenges for high volume producing industries like fasteners. There are simply too many parts to be able to inspect them all. Therefore, we must consider a better way. Starting in about the 1950s, Japanese manufacturers began using novel manufacturing techniques. Their techniques involve collecting data to control the process. The fundamental reasoning was best articulated by the Japanese Quality Specialist, Taguchi. Taguchi developed what would become known as the “Taguchi Loss Function”. In essence it says that a customer becomes less satisfied with a product as it begins to stray from its ideal condition. In other words, a part could be “in specification” but still fails to satisfy the customer. The only way to produce good parts, therefore, is to understand the process. This philosophy can best be summed up as, “good process equals good parts.” To adopt this philosophy manufacturers must have tools that allow them to understand what kind of parts are being produced from their process and once the targeted ideal condition is dialed in to have tools to monitor the process and notify operators that it is getting off-track. The new QMS systems , such as ISO9001, IATF16949, and AS9100 are all fundamentally based on this process control philosophy.
IATF 16949 started as QS9000 about 1997. From its beginning it was a derivative of ISO9000 based standards for automotive industry suppliers. It came about because the US’s “Big Three” automotive OEMS wanted to be able to eliminate their individual, and often cumbersome, Quality System requirements and replace them with one universal set of standards that could be utilized by all suppliers across the industry. After several years it was absorbed by an ISO Committee and became ISO/TS 16949. The standard was once again revised in 2016 to become the current IATF 16949 standard. Although ISO 9001 and its derivatives have always been closely linked with the automotive supplement, one of the big updates for IATF 16949 was to completely align it in structure and layout to ISO 9001. This update served to make it obvious that the two are linked together, with the IATF 16949 supplementing ISO 9001. In fact, any company that receives an IATF 16949 registration will also receive an ISO 9001 registration.
The original QS9000 had 20 different parts or topics that it addressed. This was reduced to 8 parts when QS9000 evolved into ISO/ TS16949. However, in 2015 ISO 9001 was updated to have 10 parts. Therefore, IATF 16949 was updated to also have ten parts. These are:
0.
Since IATF 16949 is a supplement to ISO 9001, meaning that it adds requirements to those already existing, the document basically states that to gain IATF 16949 registration one must meet all the requirements of ISO 9001 and the supplemental IATF 16949 requirements.
What are the Highpoints from Each Section?
Part 1 Scope:
The scope of the document basically tells the user where the standard does and does not apply. ISO 9001 is intended to cast a broad net and be applicable to any industry. IATF 16949 narrows this down to any size manufacturer within the automotive supply chain.
Part 3 Definitions:
This section is for guidance and doesn’t have any requirements. However, it is helpful to be able to understand what certain terms mean when used in the standard. Once again, IATF 16949 inserts terms that are specific only to the automotive segment.
Part 4 Context of the Organization:
This section may not be immediately intuitive to some users. It is intended, however, to ensure that organizations understand the internal and external influences that are relevant to their purpose and strategic direction. This section provides guidance on how to define the scope of the QMS. IATF 16949 provides additional guidance regarding exclusions to the scope, a practice where the requirements an organization is prepared to achieve are limited by the organization. In IATF 16949, it stipulates that the only exclusion a company may make are for design related requirements when a company does not have design responsibility. It also adds requirements for product safety that do not exist with ISO 9001.
Part 5 Leadership:
This section is all about detailing top management involvement in the QMS. It includes requirements for Top Management involvement, commitment to customers, establishing a formal Quality Policy, and the rules by which Top Management can delegate authority and responsibility for the different aspects of the QMS. IATF 16949 identifies several responsibilities that require delegation beyond those in ISO 9001.
Part 6 Planning:
This section includes elements for risk assessment, establishing quality objectives, and planning for changes to the QMS. IATF 16949 adds additional requirements for specific risk analyses, taking preventative actions, forming contingency plans and involvement of Top Management in developing quality objectives.
10. Improvement
INDUSTRY FOCUS
Part 7 Support:
This section starts to really get into the depths and important aspects of the QMS. It provides requirements for training and competency building, having the right tools and infrastructure for individuals to properly perform their jobs, providing a safe environment, calibrating tools and measuring devices, and providing good communication throughout the organization. IATF 16949 adds additional requirements such as adopting Lean Manufacturing techniques, using Measurement System Analysis (a way to monitor the effectiveness of gauges and measuring devices), identifying laboratory requirements, requiring a written Quality Manual (a requirement dropped by ISO 9001), maintaining records, and making sure that pertinent engineering standards are available and up to date.
Part 8 Operation:
This is the section that includes all the operational parameters, such as operation planning and control, customer communication, understanding product requirements, conducting thorough contract and feasibility reviews, maintaining a formal design
process (for design responsible entities), managing vendors, managing traceability, and addressing non-conforming product. IATF 16949 adds many additional requirements to this section. Perhaps a few exemplary items are understanding special characteristics, conducting manufacturing feasibility, adding specific supplier selection criteria, using control plans, adopting Total Productive Maintenance practices, managing change control, and adding extra requirements for non-conforming products.
Part 9 Performance Evaluation:
This section covers measuring customer satisfaction, internal auditing, and management review. IATF 16949 adds requirements for process capability studies, additional internal auditing requirements, and expanded management review.
Part 10 Improvement:
This section addresses corrective action and continuous improvement. IATF 16949 adds additional requirements relative to problem solving, error proofing, and expanded continuous improvement.
If you currently do not have a formal QMS or only have ISO 9001, you might be asking why you would want to add the burden of these added requirements?
The answer is simple, the IATF 16949 Quality Management System is far more comprehensive than ISO 9001. Adapting your QMS to meet its requirements will make your organization stronger and better, and likely establish you as a superior organization in the eyes of your customers. This reason alone makes achieving IATF 16949 a strategic decision and one well worth considering if you are or aspire to be a supplier to the automotive market segment.
If you currently do not have a formal QMS or only have ISO 9001, you might be asking why you would want to add the burden of these added requirements?
The answer is simple, the IATF 16949 Quality Management System is far more comprehensive than ISO 9001. Adapting your QMS to meet its requirements will make your organization stronger and better, and likely establish you as a superior organization in the eyes of your customers. This reason alone makes achieving IATF 16949 a strategic decision and one well worth considering if you are or aspire to be a supplier to the automotive market segment.
