According to Industrial Fasteners, a new study from The Freedonia Group, the industrial fasteners market in the U.S. is mature but still growing — at a rate of nearly 3% per year through 2023.
Here are a few important reasons why.
1. Rising costs. As a largely mature market, most year-over-year sales growth in industrial fasteners can be directly attributed to rising prices. In general, costs vary by fastener type, material, intended application, and performance properties.
However, the new Freedonia report asserts that there are a few common factors impacting growth in this area:
- A rise in demand for new, higher value components
- Rising demand in original equipment manufacturing (OEM) markets
- Modest (but uncertain) growth in metal prices, including the impact of the Trump administration’s steel and aluminum tariffs for as long as they are in effect
2. Durable goods manufacturing. The Freedonia research data found that the OEM sector — which includes any fastener installed as a component in a durable good during the manufacturing process — is by far the largest end-use market for industrial fasteners.
As a result, an improvement in durable goods manufacturing would help drive demand gains, particularly in the motor vehicle, aerospace, and machinery markets.
3. Tapering the competition. Though competition will have an impact on the industrial fasteners market, most manufacturers have completed the shift toward lightweight, alternative joining technologies. These technologies, which include adhesives and welding, should not present a significant threat to mechanical fastener use in the coming years, nor measurably impact sales growth.
A division of MarketResearch.com, The Freedonia Group is an international industrial research company that publishes more than 100 studies, annually.
The Freedonia Group