Fasteners procurement - Innovations and Trends in the industry

Fasteners Category Overview

The fasteners market is poised for substantial growth, with a projected CAGR of 4.42% from 2023 to 2030. Among regions, APAC stands out with a commanding share of over 40%, expected to maintain its status as the fastest-growing region in the forecast period. The surge in demand within the construction and automotive sectors is a key driver propelling the rapid expansion of the fasteners category. These essential components, offering semi-permanent or occasionally permanent solutions, are witnessing heightened traction due to various factors including advancements in construction industry practices, ongoing research and development endeavors, expansion in urban real estate infrastructure, and technological innovations geared towards producing lightweight materials for automotive and industrial applications. Additionally, the introduction of inventive industrial fasteners further amplifies the growth trajectory of this category.

In the construction realm, fasteners play a vital role in temporarily or permanently connecting multiple components. Given the industry's demand for robustness and precision, fasteners find extensive use in heavy-duty applications where materials need to be securely linked. Various types of fasteners are deployed in construction, encompassing stainless steel, alloy steel, and carbon steel variants. Nuts, bolts, washers, screws, and rivets represent common examples of construction fasteners, each tailored to meet specific infrastructure requirements. Carbon steel, renowned for its affordability, strength, and malleability, emerges as a favored material for manufacturing these components. Furthermore, the prominence of stainless steel, prized for its durability, heat resistance, and corrosion resistance, further fuels the demand for industrial fasteners.

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

The emphasis on corrosion resistance properties is expected to spur substantial investments in the development of new products, aligning with consumer preferences. Over the forecast period, increasing consumer focus on enhancing the aesthetic appeal of residential and commercial structures will drive industry growth in cable management and building exteriors applications. Nonetheless, it's important to acknowledge the challenges associated with fastener utilization. These components often necessitate specialized tools for installation, potentially inflating project costs and complexity. Certain types may require additional steps such as pre-drilling holes or applying thread-locking compounds, adding to labor and time requirements during installation. Moreover, depending on the application, some fasteners may lack the requisite strength or resilience for prolonged usage, potentially leading to costly repairs down the line if not addressed adequately from the outset. These factors have been observed to impose constraints on the growth trajectory of the fasteners category.

The landscape of the fasteners category is characterized by fragmentation and intense competition, boasting a multitude of both large-scale and small-scale manufacturers primarily situated in China, Taiwan, Thailand, and Japan. Amidst this dynamic environment, new opportunities are poised to emerge driven by the escalating demand for innovative, application-specific designs in industrial fasteners. However, prospective entrants should brace themselves for significant challenges, notably including escalating raw material costs and the formidable presence of established players engaging in high-volume manufacturing.

In the face of such hurdles, major fastener producers are expected to maintain a competitive edge over their smaller counterparts, leveraging their technological prowess and robust customer bases. A few noteworthy instances exemplify this trend:

• DEWALT, a division of Stanley Black & Decker Inc., introduced the next-generation FLEXTORQ® Impact Driver Bits in July 2023. These cutting-edge innovations, engineered for durability and precision, mark a significant advancement in driver bit technology, catering to diverse fastening applications.
• Birmingham Fasteners and Supply Inc. embarked on a strategic expansion initiative in January 2023 with the acquisition of Pacific Coast Bolt Corp. This move aimed to diversify its manufacturing capabilities and bolster its presence within the commercial fastener market, thereby enhancing customer service offerings across the United States.
• LINC Systems, LLC, a prominent distributor platform specializing in commercial fasteners and packaging solutions, announced its acquisition of Air-O Fasteners in September 2021. This strategic maneuver was geared towards amplifying the company's footprint in the Western United States, fortifying its position as a key player in the regional market.

These developments underscore the dynamic nature of the fasteners industry, characterized by ongoing innovation, strategic acquisitions, and fierce competition among industry incumbents. As the sector continues to evolve, adaptability and ingenuity will remain paramount for both established players and aspiring entrants seeking to carve out their niche in this thriving marketplace.

Fasteners Procurement Intelligence Report Scope

The Fasteners category is expected to have pricing growth outlook of 3% - 5% (Annually) from 2023 to 2030, with below pricing models.

• Cost-plus pricing,
• fixed-fee pricing model,
• discount pricing model

Supplier Selection Scope of Report

• Cost and pricing
• Past engagements
• Productivity
• Geographical presence

Supplier Selection Criteria of Report

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

Fasteners Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape
• Market estimates and forecasts from 2023 to 2030
• Growth opportunities, trends, and driver analysis
• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
• Porter’s 5 forces
• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
• Engagement and operating models, KPI, and SLA elements
• LCC/BCC analysis and negotiation strategies
• Peer benchmarking and product analysis
• Market report in PDF, Excel, and PPT and online dashboard versions 

Fasteners Procurement Cost and Supplier Intelligence

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

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

How can the nature of the fasteners category be described and who are the leading suppliers?

This category is fragmented and highly competitive with many major and regional players. Some of the major players are, Arconic Fastening Systems and Rings, Acument Global Technologies Inc, ATF Inc., Dokka Fasteners AS, LISI Group, Nippon Industrial Fasteners Company, Hilti Corporation, MW Industries Inc., Birmingham Fasteners and Supply Inc., SESCO Industries Inc.

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

Nylon Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

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Brief about Pipeline by Grand View Research:

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

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions