Cleveland OH, September 6, 2023 – According to a new study by The Freedonia Group, Global Industrial Fasteners
, the global market for industrial fasteners is projected to grow at an annual rate of 4.7% and reach $119 billion by 2027. The main driver of this growth will be the increasing demand for fasteners in various manufacturing sectors around the world. However, the growth rate will be slightly lower than the previous period of 2017-2022, when fastener prices rose sharply due to raw materials shortages.
One of the major challenges facing the industrial fastener industry in recent years has been the fluctuation in raw materials prices, especially steel, which surged in 2021 and 2022 and caused fastener prices to rise significantly in those years. This boosted the value of the global market, as fastener users had to keep purchasing them despite the higher costs. However, this also increased the pressure on fastener manufacturers to reduce costs and shift production from Europe to Asia.
The situation improved in the second half of 2022, as raw materials and energy prices stabilized and returned to levels like those before the COVID-19 pandemic. This is expected to lead to a slower increase in fastener prices in the future. However, the pandemic also had a lasting impact on the supply chain costs, such as labor, and fastener prices are unlikely to go back to the levels they were before 2020.
Aerospace-grade fastener prices tend to be more volatile than standard-grade types, as:
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- There are a relatively small number of suppliers in the market, which allows aerospace-grade manufacturers considerable latitude to raise prices in response to changes in their own cost structure.
- As aircraft manufacturers have limited sourcing options, prices increase significantly when there are shortages in the market. This contributed to elevated price growth in 2022 as aerospace equipment manufacturing began to rebound following two years of depressed industry activity
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