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The growth was driven by supplier reduction campaigns of many industrial customers; new solutions in logistical processes, which help to reduce process costs within the C-part management; and some price increases after the anti-dumping tariffs on steel fasteners.
During this process the market share of the distributors grew. At the same time the share of the fastener manufacturers rose even more by the good development of the German automotive industry and its suppliers. The development in specific branches during that period was quite diverse. In the last years for example the housing and construction sector had a plus, whereas the agricultural machinery sector was going down.
To a large part the market was driven by exports to other countries. Especially exports to China, which played an important role. The weaker growth in China and other BRIC countries may change this situation. But at the moment it seems that the southern European markets are recovering.
On the other hand we have some serious market risks: The economic and financial background in Europe is still volatile and the strong export rates, which Germany′s industry enjoyed for many years, are supported by a weak Euro. This could change due to political developments. At the moment the growth in Germany mainly comes from private consumption.
Additionally, the steel prices are also quite volatile. Until February they declined but at the moment they are increasing tremendously and nobody knows how the cancellation of the anti-dumping tariffs will impact the market. This risks more or less base on the general economic and political development. But there are also technological trends that could harm the fastener industry. For example, electrically
powered cars do not have big engines anymore, which have a lot of special parts. Even if the distributors do not serve the OEMs directly this could change the market a lot.
On the other side there are still a lot of potential customers, working with traditional purchasing systems, who could profit from a concentration on strong partners and the introduction of modern logistical systems. Those tasks need high investments in IT, automated warehouses and global purchasing.
Niches for smaller players are still seen on the market, but some of them will have problems to keep up with the speed of new developments in the areas described above. So I see a further concentration in the market, in which very innovative players have bigger chances than medium sized national companies, which still earn good money today.
-The 18th China(Guangzhou)Int’l Fastener &
Equipment Exhibition
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