Fastener_World_Magazine_No.212_Global Version

PPG High-tech Coating Steers Fastener Product Value to New Heights

PPG, the world's leading coating supplier, is helping fastener manufacturers break through the bottleneck and meet the international challenges with its leading electrocoating technology.

Top Choice for Electrocoating Brands

Renowned as the Kingdom of Fasteners, Taiwan boasts a complete supply chain that caters to global demands with both standard and special products. PPG is a leading global coating supplier and pioneer in application of coatings, dedicated to combining coating expertise with fasteners to enhance their value.

PPG Alltech Engineered Finishes in Kaohsiung, established by PPG in 2006, marked PPG’s first foothold in Asia. It introduced electrocoating technology to Taiwan's fastener market, injecting new vitality into the value of Taiwan's industrial and automotive fasteners. PPG Alltech Engineered Finishes now plays a crucial role in stabilizing the quality of Taiwan's fastener supply chain.

In 1976, PPG successfully developed electrocoating technology using cathodic epoxy, replacing anodic electrocoating and introducing it to the automotive industry. By 2001, PPG had introduced product standards for the fastener industry using this

technology and continuously improved coatings to be compatible with various small components, complying with international regulations. Today, this technology is widely used on construction fasteners and in automotive and industrial markets.

Connecting Taiwan and the World — Electrocoating Opportunities

PPG Alltech Engineered Finishes has served Taiwanese clients for nearly 20 years, maintaining close relationships and the highest service levels. “PPG's electrocoating technology uses proprietary technology and allows our team to educate our trusted client base, creating a bond that helps us compete in a crowded fastener coatings market.” The electrocoating film can provide uniform thickness, perfectly covering specially designed fastener recesses and threads, preserving the original appearance

of screws. PPG states, "We excel at coating customized small screws and construction screws because their varied shapes allow us to leverage our strengths of this finish. Other fastening products can also be coated, as we offer the best uniform film build, as well as the best surface protection and maximum product performance."

PPG continues to lead the future with its technology and join hands with the fastener industry to help them survive OEM challenges, and establish a new high value-added image of Taiwan as the Kingdom of Fasteners.

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PPG electrocoating technology boasts industry-leading features:

1. Corrosion and Acid Resistance, Doubling Product Lifespan: Salt spray tests (ASTM B117) show increased corrosion resistance to over 2,000 hours. Acid resistance reaches 30 acid rain cycles. Passing the Nordic NORDTEST-method NT MAT 003 C4 and ASTM G85 Annex-5 500 cycles tests.

2. Precise, No Clogging, No Coating Accumulation: The cathodic epoxy electrocoating technology uses the principle of attraction between positive and negative poles, allowing coating particles to be absorbed and evenly deposited on the workpiece surface, forming a continuous thin film that uniformly covers the gaps and corners of the workpiece. The film thickness can be precisely controlled to prevent clogging and coating accumulation.

3. No Hydrogen Embrittlement, Meeting Torque Requirements: PPG’s Electropolyseal® III coating converts phosphate into a base coat, allowing hydrogen ions that cause embrittlement to be released from small pores. It also addresses torque correction issues, ensuring that the workpiece meets the torque requirements for automotive fasteners.

4. Environmentally Friendly, Compliant with Regulations: Extremely low volatile organic compound emissions, with no pollution by hazardous air pollutants or heavy metal contamination from chromium, etc. Compliance with R oHS, REACH, among others, providing a significant advantage for fastener sellers in advanced countries.

A Stronger Kingdom of Fasteners

PPG notes that many foreign buyers have been actively and strategically seeking low-cost manufacturing, which inevitably compresses profit margins for fasteners. "Enhancing the value of fastener products" is a necessary path for the transformation of the Kingdom of Fasteners, and PPG's electrocoating can be a tool for fastener companies to increase value. By offering better user experiences through the aforementioned four features, PPG helps clients break free from low-price competition. "From a global perspective, the U.S. has the highest demand for electrocoating, while Europe has relatively lower demand. Over the next five years, we will gradually expand into Europe and increase demand there. Additionally, we can collaborate with Taiwanese manufacturers to provide full consulting and coating services for all overseas clients, offering on-site services at the Taiwan International Fastener Show or at clients' facilities."

PPG’s contact: Kayenne Huang, Sales & Service Representative Email: kayenne.huang@ppg.com

Fasteners Go Green?

Hu Pao’s GM Wang: “Net Zero” Is an Opportunity for Fasteners to Be Redefined

Net Zero => Sustainable Coexistence

Contact: Bill Wang, GM Email: bill@hupao.com.tw

What will you think of first when it comes to the fastener industry? Pollution? Or a sooty workplace? How can an industry that has never been associated with environmental protection go green? Bill Wang, GM of Hu Pao Industries, who has been in the fastener industry for over 20 years, points out that the key lies in “Net Zero”. Net Zero is a process of minimizing carbon emissions and offsetting them with carbon credits or carbon absorption. It sounds simple, but is an important industrial revolution for the fastener industry to enhance the competitiveness, coexist with the environment, and create a circular economy in the future.

In order to reverse the public's stereotype of dirty screw factories, GM Wang, who fully believes that enterprises should not only focus on profits but also bear environmental & social responsibilities, began to promote “net zero” in the fastener industry many years ago, and started with his own factory expansion to create a comfortable and safe workplace with low carbon emissions for all employees. He thinks that the disasters caused by climate change have become more serious than ever, and if people don't do something, they are bound to affect our future generations. “Net zero can’t be just a

lip service and change can only be made by breaking old rules,” says Wang. Such ideas can be implemented in fastener factories through 5S management, lean process management, digital carbon emission management, or improving high carbon emissions through organizations. He thinks that the spirit of net zero is sustainable coexistence, not to comply with regulations, but to demonstrate a company's commitment to environmental protection and find a carbon reduction strategy that best suits its own size in the long run.

Not About Size! Corporate Value Lies on Respect to the Environment

The essence of a green enterprise lies on its respect to the environment. Besides eye-catching carbon reduction figures, it should further create a sense of fulfillment for employees, a sense of trust for customers, and a sense of coexistence with the community. Meanwhile, building a company that everyone can be proud of through carbon reduction to enhance the product value is also Wang's top consideration while making decisions. Although the fastener industry is not as large-scale as other industries, each fastener is the key to supporting the global industries. ”CBAM is a challenge, but is also an opportunity for the industry to be transformed and redefined. If we can reduce the carbon emissions of countless fasteners around the world, we can transform ourselves from manufacturers into connectors to sustainability," says Wang.

Transforming Net Zero into Corporate Culture

Making net zero a part of his corporate culture, Wang has introduced a digital energy management system, solar panels, equipment upgrade, ISO carbon inventories, and lubricant recycling system into the corporate management. On the other hand, he also planted trees, provided veggie meals for employees, and invited supply chain partners to reduce carbon footprints, putting the concept of net zero into practice in lives and work. “I once visited a cosmetics factory and was surprised at how clearly they showed their carbon footprints on products. The fastener industry must keep pace with the predecessors' advances in digitization and energy efficiency management, and have the spirit of sustainability

internalized. Transparent carbon info is what the fastener industry lacks the most , and understanding CBAM specifications is part of a concerted effort," says Wang.

Carbon Reduction Determines Future Order Taking

In response to CBAM and U.S. carbon reduction system, the disclosure of carbon emissions will become a new criterion in addition to price if one wants to compete for orders from large factories. Wang thinks that carbon reduction is a way to reducing costs with quantifiable benefits on one hand, and helping enterprises transform towards branding and innovation on the other hand. Under his leadership, Hu Pao has started to work with customers to design low-carbon products and develop alternative materials. He encourages the industry get to know themselves by carbon inventory, setting up task forces, introducing management systems like ISO14064 and ISO50001, not going it alone, and making good use of associations, industry forums and official/ external consulting platforms to obtain more subsidies or resources. "I hope to build a ‘Low Carbon Smart Factory Demo Base’, and am also developing a more convenient carbon emission statistics system. In the future, I’d like to invite industry partners to set up a ‘Sustainability Alliance’, so as to attract more people (especially young people) to change the fastener industry. Small screws support the world's operation. If you are willing to do so, you can join us to transform the fastener industry into one that thrives with the environment and that you are proud to be a part of,” says Wang.

※Hu Pao's new logo combines the shape of nut threads with the Earth’s curvature, symbolizing the close connection with the world. The inner ringshaped curve symbolizes the company's progress towards the concept of a circular economy. The dark and light green colors represent solid technical expertise as well as innovation, sustainability and hope. They fully reflect the company’s commitment to carbon reduction, sustainability and green coexistence.

Copyright owned by Fastener World / Article by Gang Hao Chang, Vice Editor-in-Chief

Achilles Seibert Increases Global Presence in 2025

Achilles Seibert GmbH, a family-run specialist in fasteners based in HenstedtUlzburg, Germany, continues to strengthen its position as a key partner for distributors worldwide by expanding its services, geographic footprint, and sustainability efforts. With a history dating back to 1951, the company has evolved from a traditional importer and warehouse to a comprehensive service provider, adapting to the challenges of a volatile global market and regulatory environment. Today, it works between distributors and manufacturers, selling to distributors and acting as an importer and a warehouse for distributors such a Bossard, Böllhoff, Würth, from big to small brand names and shops.

Strategic Warehouse Expansion and Global Presence

At the end of 2023, Achilles Seibert finished its warehouse expansion in Germany. In 2024, it further extended its global reach by establishing warehouses in Vietnam and India, staffed with local employees responsible for sourcing and quality control. This strategic move allows the company to store goods closer to key manufacturing hubs, streamline logistics, and reduce the workload on its German operations. The company is now opening its own office in Ho Chi Minh City, Vietnam, in 2025, signaling a deeper commitment to the Southeast Asian market and enhancing service capabilities for customers in Asia and onto the whole world.

Diversification and Market Growth

Amid ongoing geopolitical and economic uncertainties, Achilles Seibert has diversified its sourcing strategy to mitigate risks. The company has expanded its supplier base and product range, aiming to meet the demands of a broader customer base. This includes increased business in Eastern Europe, a growing market within the EU, and a strengthened presence in Southeast Asia, supported by the new warehouses in India and Vietnam. These developments enable the company to serve customers more efficiently across multiple regions, including the US and Canada.

The company also plans to enhance its product portfolio in the latter half of 2025, alongside offering sourcing, consultation, and quality control services for customers in India and Vietnam. “We no longer just want to sell fasteners but also offer a service. We want to create added value for customers, including 24-hour fast delivery, delivery directly from their suppliers in 3-6 months, delivery from the Vietnam and India warehouses in 4-8 weeks,” said Timo Scholle, Managing Director. This value-added approach reflects Achilles Seibert’s transition from a pure fastener supplier to a comprehensive service partner, providing 24-hour fast delivery and tailored supply chain solutions.

The company also leverages digital tools to enhance customer experience. Its user-friendly webshop allows customers to check product availability and place orders quickly, reducing administrative burdens and improving supply chain efficiency.

Strengthening Global Partnerships

Achilles Seibert values its longstanding relationships with global partners, particularly in Taiwan. The company follows its partners into new production areas, benefiting from their expertise and knowledge. This collaborative approach supports Achilles Seibert’s growth and ability to adapt to changing market conditions.

Achilles Seibert GmbH is successfully navigating the complexities of the global fastener market through strategic warehouse expansion, geographic diversification, enhanced service offerings, and a strong commitment to sustainability and regulatory compliance. With a growing presence in Southeast Asia and Eastern Europe, and plans to broaden its product range and services, the company is well-positioned for continued growth and leadership in the fastener distribution sector.

Contact: Timo Scholle, Managing Director

Email: timo.scholle@achill-fasteners.com

The Mechanism of CBAM Steps and Processes

As the European Union continues its phased implementation of the Carbon Border Adjustment Mechanism (CBAM), businesses engaged in importing carbon-intensive goods must prepare for its operational requirements. While previous articles in this series have explored CBAM’s objectives and the industries affected, this article focuses on the procedural aspects—how CBAM works in practice and what steps are involved in compliance. Understanding the key processes will be crucial for companies navigating this evolving regulatory framework.

CBAM’s Operational Framework

CBAM is designed to ensure that imported goods are subject to a carbon price equivalent to that imposed on domestic producers under the EU Emissions Trading System (ETS). To achieve this, the mechanism follows a structured process, requiring importers to assess emissions, report them, and ultimately account for their carbon footprint through the purchase of CBAM certificates.

CBAM is being introduced gradually, with a transitional phase allowing businesses to familiarize themselves with reporting obligations before full financial implementation takes effect. The transitional phase, which began in October 2023, will last until the end of 2025, after which the full financial obligations of CBAM will come into force. During this period, importers are required to report emissions data but are not yet required to purchase CBAM certificates.

Steps for Importers Under

CBAM

Identifying Goods Under CBAM

Importers must determine whether their goods fall within the scope of CBAM. Currently, the regulation applies to high-emission sectors such as steel, aluminum, cement, fertilizers, electricity, and hydrogen. These sectors were chosen due to their significant contribution to global carbon emissions and their exposure to carbon leakage risks.

Each product is classified under specific Combined Nomenclature (CN) codes, which determine its regulatory treatment. Accurately identifying these codes is essential for compliance, as they dictate reporting and carbon pricing requirements. The classification process can be complex, particularly when dealing with composite materials or goods that undergo multiple production stages.

For example, steel products are classified under various CN codes, such as 7208 51 00 for hot-rolled steel and 7210 41 00 for cold-rolled steel. Similarly, aluminum products are classified under codes like 7604 10 00 for aluminum bars and 7606 12 00 for aluminum plates. Importers must ensure that their goods are correctly classified to avoid penalties or delays in customs clearance.

Embedded Emissions

Embedded emissions refer to the greenhouse gases emitted during the production of goods, from raw material extraction to the final product. CBAM requires importers to report these emissions, ensuring that the carbon footprint of imported goods is fully accounted for.

Embedded emissions are classified into different categories:

- Direct emissions: Emissions resulting from the main production process, such as the combustion of fossil fuels in a steel furnace or the electrolysis process in aluminum production.

- Precursor emissions: Emissions associated with the raw materials used in production. For example, in steel manufacturing, the emissions from iron ore processing must be accounted for.

- Indirect emissions (currently excluded but under discussion): Emissions from electricity used during production, such as power sourced from coal-fired plants in a non-EU country.

To comply with CBAM, businesses must accurately track these emissions throughout the supply chain, which can be complex, particularly when dealing with suppliers in regions with limited emissions reporting frameworks.

A critical challenge for importers is ensuring that emissions data is consistent and verifiable. Many suppliers outside the EU may lack

the infrastructure to provide detailed carbon footprint assessments, requiring importers to assist in setting up emissions reporting mechanisms or to seek third-party verification.

Collecting Emissions Data

The core requirement of CBAM is the calculation of embedded emissions in imported goods. This includes emissions from direct production processes as well as precursor materials used in manufacturing. Importers must work closely with their suppliers to gather accurate emissions data, following methodologies outlined by the European Commission.

If actual emissions data is unavailable, default values may be used under specific conditions. However, the EU has signaled that default values should only be relied upon as a last resort, and importers must demonstrate efforts to obtain real data from producers.

The process of emissions data collection involves tracking emissions across multiple stages of production. For instance, in steel manufacturing, emissions data must be recorded from raw material extraction, transportation, processing, and final production. Similarly, in the aluminum sector, emissions from bauxite mining, refining, and electrolysis must be captured accurately.

Many companies are now investing in blockchainbased systems to trace carbon emissions throughout their supply chains. Such technologies can improve transparency, reduce fraud, and ensure compliance with CBAM’s stringent reporting requirements.

Submitting CBAM Reports

During the current transitional phase, importers must submit quarterly reports detailing the emissions associated with their imports. These reports serve as a trial period for businesses to adapt to CBAM’s requirements and provide the EU with data to refine its implementation.

Reports must include:

- The quantity and type of imported goods.

- The total embedded emissions for each product.

- Information on any carbon pricing mechanisms applied in the country of origin.

While no financial obligations exist during this phase, compliance with reporting requirements is essential to avoid penalties and to prepare for the next stage.

To ensure accurate reporting, companies should establish internal processes for emissions tracking and verification. This may involve implementing digital tracking systems or hiring sustainability experts to assist with compliance.

Purchasing and Surrendering CBAM Certificates

Once CBAM is fully implemented, importers will need to buy CBAM certificates corresponding to the emissions embedded in their goods. The price of these certificates will be linked to the EU ETS carbon price, ensuring alignment between domestic and imported carbon costs.

By the end of each compliance period, importers must surrender the appropriate number of certificates to cover their declared emissions. If an importer has paid a carbon price in the country of production, they may be eligible for a reduction in the number of required CBAM certificates, provided that the foreign carbon price is deemed equivalent to the EU standard.

Compliance Challenges and Business Considerations

Implementing CBAM will introduce several challenges for businesses:

- Data Collection: Many companies rely on complex international supply chains, making it difficult to gather emissions data from upstream producers.

- Administrative Burden: CBAM requires importers to maintain detailed records and ensure compliance with evolving EU regulations.

- Cost Implications: While CBAM promotes fair competition, it could increase costs for businesses importing goods from countries with high-carbon production methods.

Despite these challenges, CBAM also presents opportunities for companies willing to adapt:

- Supply Chain Optimization: Businesses may explore sourcing from lowercarbon producers or invest in cleaner production methods.

- Competitive Differentiation: Companies that proactively reduce their carbon footprint may gain a competitive advantage as sustainability becomes a key market driver.

- Policy Alignment: Understanding and integrating CBAM into corporate strategy will ensure long-term compliance with EU climate policies.

Looking Ahead: The Road to Full Implementation

CBAM is a dynamic policy that will continue evolving. The transitional period, which runs until the end of 2025, serves as a critical phase for refining implementation mechanisms. However, businesses should already be preparing for full compliance, as financial obligations will commence thereafter.

Future developments could include:

-Expansion of CBAM to additional sectors, such as chemicals, plastics, and glass.

-Adjustments to reporting methodologies based on feedback from businesses and regulators.

- Potential agreements with non-EU countries on mutual recognition of carbon pricing schemes.

One of the key discussions surrounding CBAM’s expansion is whether it will encourage other countries to adopt similar carbon pricing mechanisms. If more regions introduce their own CBAM-style measures, global trade patterns could shift toward a new standard for carbon accountability.

Conclusion

CBAM is a major shift in global trade and carbon regulation. As the mechanism progresses, businesses must stay informed about regulatory updates, refine their compliance strategies, and engage proactively with their supply chains.

By understanding the operational steps and integrating CBAM requirements into business processes, companies can not only meet regulatory obligations but also position themselves as leaders in the low-carbon economy. The companies that take proactive measures today will be best positioned to navigate future regulatory changes and benefit from an increasingly carbon-conscious market.

Additional Considerations for Businesses

As CBAM continues to evolve, businesses should also consider the following:

- Engaging with Stakeholders: Companies should engage with suppliers, customers, and industry associations to stay informed about CBAM developments and share best practices for compliance.

- Investing in Technology: Investing in digital tools and technologies for emissions tracking and reporting can streamline compliance processes and reduce administrative burdens.

- Monitoring Regulatory Changes: CBAM is still in its early stages, and regulatory changes are likely as the EU refines the mechanism. Businesses should monitor updates from the European Commission and other relevant authorities to stay ahead of new requirements.

By taking these steps, businesses can not only ensure compliance with CBAM but also contribute to the broader goal of reducing global carbon emissions and promoting sustainable trade practices.

Copyright owned by Fastener World / Article by Luigi Villani

The U.S. reciprocal tariffs have come into effect since April 09, causing a significant impact on many products exported to the U.S. from around the world. In addition, pursuant to Section 232, specific steel and aluminum products from all over the world have been subject to a 25% tariff since March 12, which is on top of the basic tariff rates already imposed on exports to the U.S., causing even worse impact on manufacturers and U.S. importers. As a result, some importers have been forced to hold back their shipments or simply abandon their orders. I’d like to remind the suppliers that since President Trump's tax measures have been changing over the past few months, some of the info about the calculation and application of the tax rate on fasteners going to the U.S. may be incorrect. In particular, it should be noted that not all rates are applicable to fasteners. For example, the 32% reciprocal tariff imposed on Taiwan (note: Trump has announced a 90-day moratorium on April 09) is not applicable to fasteners.

What Tax Rate are Fasteners Actually Subject to?

Currently, there are two types tariffs applicable to fasteners exported to the U.S. One is the basic tariff rate (e.g., 12.5% for wood screws, 6.2% for self-tapping screws with the diameter less than 6mm, and tariff-free for nuts), and the other one is the tariff rate of 25% pursuant to Section 232 on steel and aluminum products (including derivative products). That is to say, on the basis of non-MFN or non-special countries, a wood screw imported into the U.S. will be subject to a combined tax rate of 37.5% (12.5% + 25%).

Good or Bad News? Watch Out for the Following Impact of Reciprocal Tariffs

Although some countries are entitled to half or exemptions on specific items due to their FTA with the U.S., resulting in a difference of up to 12.5% in the final total tariff rate, there is basically no exception to the 25% tariff increase. This may be good news for companies in Taiwan, China or other Southeast Asian countries as they won’t have to face pressure from higher reciprocal tariffs in the short term, but the conservative market sentiment may still affect customers' willingness to place orders in the near future. According to TFTA Chairman, orders from U.S. customers may temporarily decline by 30% after the implementation of the 25% tariff, and the demand may start to recover only after local inventories bottom out. Other concerns are that fasteners are closely related to many industries and other industries directly slashed by reciprocal tariffs (e.g., precision machinery or CNC machining equipment) may therefore reduce their consumption and lower the demand. Other fastener SMEs that do

Editorial:

How Can Taiwan Fastener Industry

not have the capital to set up factories in the U.S. to avoid high tariffs may also shift their focus to the development of non-U.S. markets, indirectly resulting in more fierce competition in these non-U.S. markets.

Some industry players told Fastener World that the reciprocal tariffs imposed by the U.S. on various countries (especially China) may make some orders switched to Taiwanese manufacturers in a short period of time (it is heard that some companies have already had urgent orders recently). It is understood that, in response to the 25% tariff, some Taiwanese companies have reached a tacit agreement with U.S. customers to share tariffs in order to reduce the impact, thus strengthening the force of switching orders to Taiwan. Coupled with the prospect of European market expected to be promising after Fastener Fair Global 2025. the performance of Taiwan's production capacity is very likely to return to normal this year. However, in the long run, it remains to be seen whether the effect of such an order switching can be sustained. In light of the fact that Trump's policies can change from one day to the next, an assessment of the actual impact of these tariffs on the fastener industry may not be clear until the outcome of the negotiations on reciprocal tariffs has been finalized in H2 this year. Before reaching an agreement with the

U.S. administration, maybe the Taiwan government can assist the local fastener industry to tide over the difficult times first by way of tariff subsidies, tax rebates for exports to the U.S., etc., and there should be more resources and units (e.g., the National Development Council or IDA of MOEA) to guide the industry to capitalize on opportunities for digital transformation and smart manufacturing, so as not to let the fastener industry, which has been supporting the development of Taiwan's economy for more than 6 decades, be eliminated in the face of competition, and turn into a situation in which only several large factories can survive and small ones can only close down their factories.

Paying Attention to the Issue of Third-Country Tax Circumvention

Whether or not a manufacturer has circumvented customs duties via a third country has been the focus of the U.S. Customs in recent years and the U.S. Customs also have guidelines for determining a product's place of origin. It is also heard that in the past some manufacturers from other countries once exported semi-finished products to third countries subject to lower tax rates for simple processing and packaging, faking them to be products produced in third countries, which, if detected, may affect the image of the same products from other counterparts in the international market. The high reciprocal tariffs previously announced by the U.S. against specific countries in Southeast Asia were more or less a sign to speculators warning them not to circumvent via third countries. The industry should still comply with the relevant international regulations and should not jeopardize the industry's long-established good image for selfish reasons.

Before the U.S. levied a 25% steel and aluminum tax on the whole world, the profit margins of Taiwanese standard fasteners had not been too much in the face of competition from their Chinese or other countries’ counterparts. In the current U.S. tax algorithm for fasteners, Taiwan's profit margin has been further reduced by 25%. If the wire costs of China and other Southeast Asian countries which have been 15-30% lower than that of Taiwan are also taken into account, Taiwanese fastener companies bearing up to 60% of their manufacturing cost from wire will go into a tougher situation. The prices of wire rod and coil are definitely the most important factor that affects the profitability of manufacturers and the competitiveness of their quotations. In Q2 this year, Taiwan CSC raised NT$600 per ton for wire rod (it is understood that the average price of domestic wire rod this April was about NT$24,900 per ton), so the production costs of manufacturers definitely have increased again. In June, Taiwan CSC will hold the Q3 production and sales meeting with the industry again, and the price adjustment of wire rod will definitely become the most important concern of the industry. Some manufacturers have privately revealed that it would be best if Taiwan CSC could reduce its wire coil price per ton by NT$1,000-1,500. If Taiwan CSC can take the impact of U.S. tariffs on the domestic industry into consideration and make more concessions on the price adjustment for Q3, coupled with the exchange rate of USD against NTD coming to 1:31, and the active introduction of innovative wire processing processes by Taiwanese manufacturers to reduce their production costs by 10-20%, the pressure on businesses should be greatly relieved and the reduction in profit margins due to the tariff increase can be compensated.

Copyright owned by Fastener World

Article by Gang Hao Chang, Vice Editor-in-Chief

Survive U.S. Tariff Impact?

Taiwan's Fastener Industry Faces Four Major Crises

Amid Rapid TWD Appreciation

Taiwan Dollar (TWD) Swings 9%, Surges Past Profit Defense Line Like Runaway Train

Tariffs CBAM Exchange Rates Market Downturn

At the end of April this year, the exchange rate of the Taiwan dollar against the US dollar averaged around 32.5 TWD per USD. However, within less than a week, it rapidly appreciated, even breaking through the 30 TWD mark, reaching the highest level in nearly three years. Table 1 summarizes the trajectory of the Taiwan dollar's appreciation from late April to the time of writing this article (May 6). This article analyzes the impact on Taiwan's fastener industry and the existing countermeasures during this period.

Table 1. USD to TWD Exchange Rates from Late April to May 6, 2025 (Source: cnYES)

Trading Volume SMA 1 2.331B

Exchange Rate Analysis:

• At the end of April, the USD to TWD exchange rate was around 32.5, indicating a relatively strong Taiwan dollar.

• On May 2, the Taiwan dollar sharply strengthened to about 31, marking nearly a 3% appreciation.

• By May 5, it further appreciated to 30.1, gaining another nearly 3%, reaching the peak appreciation during this period. During the trading hours of that day, it even broke the 30 mark, hitting 29.5, showing a significant Taiwan dollar appreciation and relative weakening of the US dollar.

• On May 6, the rate slightly returned to around 30.2, with minimal change.

• Overall, during this period, the USD to TWD exchange rate exhibited a dramatic appreciation trend, moving from approximately 32.2 to as far as 29.5. The difference between the highest peak and lowest trough exceeded 9%, indicating a rapid and steep appreciation of the Taiwan dollar.

Figure 1. Daily USD to Taiwan Dollar Exchange Rate from April to May 6, 2025 (Source: cnYES)

KATSUHANA FASTENERS CORP.

• Figure 1 illustrates that the Taiwan dollar’s appreciation speed between April and early May resembled a runaway train, breaking through many Taiwanese manufacturers’ profit defense lines. Media outlets have already warned that this could lead to very low-performing corporate financial reports.

Gross Profit Margin Sharply Contracts, Even Turning Negative

Mr. Yung-Yu Tsai, Chairman of Taiwan Industrial Fasteners Institute, stated that the average gross profit margin in the fastener sector is only about 15%. The recent rapid appreciation of the Taiwan dollar has eroded profit margins to zero or even pushed them into negative territory within a short period. If the Taiwan dollar continues to strengthen, the industry could face a large wave of business closures. According to industry insights, if the USD-to-TWD exchange rate appreciates to 28, only companies capable of maintaining a gross margin above 30% might survive, but such high-margin fastener manufacturers are rare in Taiwan.

From the perspective of Chun Yu Works, a major screw manufacturer, an exchange rate shift from 32.5 to 30.0 represents about an 8% loss in competitiveness for Taiwanese fasteners. A Taiwanese fastener company generates an average 15% gross margin. The exchange rate shift translates to losing over half of the profit margin.

The average gross profit margin in the fastener sector is only about 15%. The recent rapid appreciation of the New Taiwan dollar has eroded profit margins to zero or even pushed them into negative territory within a short period.

Moreover, about 80% of Taiwan’s screw manufacturers are small and medium-sized enterprises with even lower profit margins. Taiwan fastener industry is already facing intense competition from low-cost products from China and Southeast Asia. The loss of exchange rate advantage will further weaken the price competitiveness of Taiwanese fasteners in the international market.

Taiwanese Businesses Reaction to Taiwan Dollar Appreciation

Price Hikes, Overseas Demand Monitoring, and Calls for Government Support

Barry Tsai, Manager at Sheh Kai Precision, a manufacturer of stainless steel and alloy steel bi-metal screws, noted that the strengthening Taiwan dollar has already led to at least an additional 10% in exchange rate losses based on the May 5 exchange rate. “We quote our products in USD with our overseas buyers, so to cope with this exchange rate impact, we must raise prices in the short term,” said Barry.

“Sheh Kai Precision has about 10% of its orders from the United States, and we are closely watching whether the strong appreciation of the Taiwan dollar will lead to a decline in demand from U.S. buyers, impacting order volume. For Europe, where we receive over 50% of our orders, we anticipate that the impact of our price increase will be minimal for European buyers due to the weakening US dollar and strengthening Euro for the time being. Looking ahead, we will continue to update our certifications annually and are developing new anchor products expected to be launched next year,” he continued. Overall, while the appreciation of the Taiwan dollar poses significant challenges to the industry, Sheh Kai Precision believes it has a sufficient foundation to overcome this challenge and suggests that the government provide tax cuts or preferential loan interest rates.

In the field of fastener inspection machinery, General Manager Mr. Hsu of Ching Chan Optical Technology stated that the rapid appreciation of the Taiwan dollar in early May was unexpected and had a comprehensive impact, catching many domestic exporters trading in US dollars off guard and creating considerable challenges in mitigating losses.

Ching Chan Optical Technology is responding to the exchange rate changes by raising prices in the short term. Looking ahead, the company assesses that these dramatic exchange rate changes will not have a significant impact on its overall operations, and it will continue to provide robust supply support for fastener inspection needs both domestically and internationally. In recent years, it has continuously invested in development of new and upgraded AI technologies for its inspection machine products and will continue to delve into potential industries such as semiconductors, electric vehicles, automation, robotics, medical care, and food safety.

Chairman Mr. Zhuang of Taiwan Association of Machinery Industry stated that the global economic downturn, combined with pressures from domestic competitors as well as international competitors such as Japan and South Korea, has made running machinery businesses in Taiwan very difficult. He urged the government to support export-oriented industries and requested that banks avoid tightening loans during poor economic conditions. He also called for relaxed loan-tovalue ratios on loans secured by land or factory buildings to ensure companies have sufficient working capital to overcome the current challenges.

Rick Wang, president of Masterpiece Hardware Industrial, a major fastener manufacturer in Changhua County (central Taiwan), pointed out that although exchange rate fluctuation itself is a normal phenomenon, the sudden and sharp appreciation in early May caught many manufacturers by surprise, leaving them little time to hedge or mitigate the impact. “In the short term, we must adjust prices and communicate well with clients. If the strengthening Taiwan dollar continues for more than a month, it could become persistent, significantly weakening the pricing advantage of Taiwanese fasteners and severely impacting the industry. Besides the tariffs imposed during the Trump administration, the current exchange rate losses are like rubbing salt into the wound. Moreover, the Trump tariffs caused China to increase exports to Southeast Asia and countries other than the U.S., while Taiwan, which has yet to be an RCEP member, faces intensified competition from low-priced Chinese products.” Rick hopes the government will assist by providing

INDUSTRY FOCUS

preferential interest rates, financing loans, and specialized machinery financing programs to help the industry navigate this challenge and prepare for future industrial upgrades.

Masterpiece Hardware Industrial believes the ultimate solution lies in strengthening product differentiation and core competitiveness, optimizing cost structures, and precisely positioning products and target markets. Only by reinforcing the fundamentals can companies withstand the overwhelming challenges ahead.

Increased Working Capital Risks and the Need for Enhanced Risk Management

Now it is critical for Taiwanese fastener companies to establish robust exchange rate risk management during Trump's second term.

The appreciation of the Taiwan dollar has increased working capital risks for Taiwanese fastener manufacturers. That is, export revenues (in USD) decrease in value when converted into the stronger Taiwan dollars. While production costs remain unchanged, many Taiwanese companies face cash flow tightness. Taiwanese industry players have already been aware of Trump’s ambition of a weaker US dollar and a stronger Taiwan dollar, which now comes true in the way that Trump had hoped for. Now it is critical for Taiwanese fastener companies to establish robust exchange rate risk management during Trump’s second term. They might consider adopting practices from the Taiwanese textile industry—another victim to the Trump tariffs— such as adjusting contract terms to include exchange rate adjustment clauses. When exchange rate fluctuations exceed a certain threshold, prices can be renegotiated to share the exchange rate risk with clients.

Although many firms have raised product prices, they must also strengthen their financial risk controls to survive the economic turmoil of 2025.

“Overall, I figure the recent Taiwan dollar appreciation has only a shortterm impact on Masterpiece Hardware Industrial, but a long and sustaining development requires continuous effort and improvement. We are still expanding our factory near our headquarters to meet growing future overseas demands,” said Rick.

Hedging Against Exchange Rate Risks

Larger fastener manufacturers, such as Chun Yu Works, have adopted exchange rate hedging strategies to mitigate the impact of currency fluctuations. Chun Yu Works stated that they generally lock in exchange rates when taking orders, so companies that hedge actively will experience minimal impact on already confirmed orders. However, this hedging approach is difficult for small and medium-sized enterprises with weaker financial strength to implement. Currently, Taiwan’s financial regulators impose strict controls to prevent speculative currency trading. These measures set high barriers for companies wishing to use lockin exchange rates or pre-selling methods, increasing the difficulty for businesses to hedge exchange rates effectively. As a result, some industry players have called for a relaxation of these restrictions to facilitate better risk management.

Additionally, some companies reportedly delay converting received US dollar payments into Taiwan dollars to avoid unfavorable exchange rate periods. This means they hold onto US dollars after payment and wait for the Taiwan dollar to return to a more favorable rate before converting. However, this strategy requires sufficient cash flow to sustain operations during the waiting period.

The Patient Offense: Fortify, Observe, and Strike in a Mad-man Era

The rapid appreciation of the Taiwan dollar in early May 2025 has posed a severe challenge to Taiwan fastener industry, especially for exporters heavily reliant on foreign markets.

The sharp currency strengthening has pushed many companies to the brink of survival that leaves them facing zero gross margins and declining competitiveness. This exchange rate shock serves as a wake-up call, prompting the companies to focus more on exchange rate risk management amid an increasingly volatile global economic environment. The Trump administration wields its tariffs like a wild blade, relentlessly slashing into the profit margins of foreign competitors, as its dominance over the global market economy becomes an entrenched norm. Large Taiwanese fastener companies, with relatively stronger cash flow, can weather the short- to medium-term currency impact, but small manufacturers and OEMs urgently face foreign exchange losses that threaten their viability. Although many firms have raised product prices, they must also strengthen their financial risk controls to survive the economic turmoil of 2025.

The Taiwan dollar sharp appreciation delivered a significant shock to Taiwan’s exportoriented manufacturing sectors, including fasteners, plumbing hardware, and electronics. These industries had already faced tariff pressures from the Trump tariffs in the first four months of 2025, and now the strengthening Taiwan dollar adds further operational strain. An anonymous CFO from a major Taiwanese electronics firm revealed to the press that if the appreciation does not ease, gross margin losses could conservatively start at 10%, and in reality, could be several times higher. Plumbing hardware companies typically have gross margins of only 10% to 15%, and fastener manufacturers around 15%. The exchange rate shift from 32 to 30 TWD per US dollar has already eroded most of their profit margins. Should the Taiwan dollar continue to strengthen past the 30, 29, or even 27 levels without intervention, it could trigger a widespread wave of business closures.

~Association Perspective~

EFDA: Geopolitical Shifts and Evolving Policy Priorities are Reshaping the Economic Environment

Political and Economic Uncertainties are Major Challenges

Tariff wars, carbon reduction, regional conflicts and developments in international relations will continue to shape the global industry in 2025. Policies and attitudes of the U.S. new administration on whether to raise tariffs on specific products from certain countries, whether the EU CBAM’s emissions calculation will be significantly adjusted in H2 this year, the Russia-Ukraine and Israel-Hamas wars with still no end in sight, or the subtle changes in competition or alliances between economic powers (such as the US, China, and the EU) will continue to bring more uncertainties to the global market, further heightening the concerns of many business owners about the future of their industries.

“The level of uncertainty in the global economic and political landscape has continued to increase beyond what we have experienced in the past. Rapid geopolitical shifts and evolving policy priorities are reshaping the economic environment, requiring both society and businesses to adapt swiftly to a constantly changing reality. This volatility presents significant challenges, particularly in terms of strategic planning, as recent political developments have demonstrated how unpredictable the global stage has become,” said EFDA President Andreas Bertaggia.

▲ EFDA President Andreas Bertaggia

Businesses Need to be Flexible and Adaptable

In order to survive in a market full of uncertainties and create greater competitive strengths to face future challenges, not only leading companies but also many SMEs with a forward-looking vision have begun to speed up the pace of their regional market layout and make more appropriate adjustments in response to more rapid policy changes. For example, some Taiwanese fastener manufacturers have recently set up new factories in Vietnam, large car manufacturers are planning factory expansions in the U.S., or Japanese and South Korean companies have set up large-scale industrial clusters in Southeast Asian countries, etc.

“In such an environment, agility and adaptability remain crucial for businesses to navigate ongoing disruptions. However, it is also important to recognize that change can bring opportunities. While some market segments face significant headwinds, others stand to benefit from emerging economic realities and evolving policy frameworks,” noted President Bertaggia.

Revitalizing the Economy and Reducing Bureaucratic Burdens

Promoting the economic recovery of the EU and enhancing the external competitiveness of industries within the region are important directions in the current policy making for many European governments. In the past, bureaucratic systems have often resulted in inefficient implementation and excessive burden on industries. Therefore, the EU has begun to make some improvements in the promotion of various programs and policies in order to respond to external political or economic challenges.

“At the European level, we observe a shift in political priorities, particularly in light of the changing dynamics in EU-U.S. relations. There is now a stronger focus on revitalizing the economy and reducing bureaucratic burdens, as seen in the introduction of initiatives such as the Clean Industrial Deal released in February this year. Notably, the proposed improvements in the Carbon Border Adjustment Mechanism (CBAM) reporting process represent a step in the right direction, easing some of the administrative challenges faced by our industry. However, until significant changes are made to CBAM, EFDA continues to advocate for the exclusion of downstream products such as fasteners made from CBAM, as we believe the application of CBAM to these products places an unnecessary burden on our sector,” added President Bertaggia. “In terms of policy focus, we note that while sustainability remains an important long-term objective, immediate priorities have shifted towards economic resilience and strengthening Europe’ s self-defense capabilities. The increasing emphasis on reducing bureaucratic complexity is a welcome development, as excessive regulatory burdens can hinder competitiveness, especially for European companies operating in a globalized market. While the core objectives of many regulatory initiatives are well-founded, their implementation often results in reporting obligations that exceed the practical capacities of our industry. It is crucial to strike the right balance between regulation and competitiveness to ensure European businesses can thrive in the international arena.”

Watch Out for the Impact of Trade Tensions

The retaliatory tariff increases between the U.S. and Canada, the escalating trade war between the U.S. and China, and even the recent war of words between the U.S. and Europe over whether or not to increase taxes on specific products of the other side are all adding to the tension in the global trade situation. Many of the major players in these markets are concerned that if these tensions continue to spiral out of control, consumers may face higher prices and inflation, which could have a knock-on effect in the marketplace.

“ The escalating trade tensions pose another significant challenge, with potential ramifications for the broader economy. Rising prices, driven by trade restrictions, are likely to contribute to inflationary pressures. As inflation increases, interest rates may follow, which in turn raises financing and investment costs—factors that have historically led to slower economic growth, particularly in already fragile market conditions,” noted President Bertaggia.

Fair Trade and Open Market

Trade between countries should be based on the principle of fairness. However, if one party competes on an unequal basis (e.g., large subsidies or tax rebates from the government), it may cause an imbalance in the supply chain of the market, resulting in unfair competition.

“At EFDA, we remain committed to advocating for fair trade policies, sustainable business practices, and an open market that fosters long-term industrial growth. In these challenging times, close cooperation between industries and policymakers will be essential to overcoming obstacles and identifying opportunities that support Europe’s economic future,” concluded President Bertaggia.

Copyright owned by Fastener World / Article by Gang Hao Chang, Vice Editor-in-Chief

H2 2025 Event Calendar of Associations

◆ Speciality Tools & Fasteners Distributors Association (STAFDA)

◆ Pac-West Fastener Association (Pac-West)

National Fastener Distributors Association (NFDA)

Industrial Fasteners Institute (IFI)

New England Fastener Distributors Association (NEFDA)

And Engineering Industries Federation of South Africa (SEIFSA)

Staple, Nail And

Association (ISANTA)

Construction Screws by Fong Prean

With such a wide variety of construction screws available in the market, customers often face a time-consuming process when trying to find the right solution. Even after identifying a potential match, the product may still fail to meet the actual fastening requirements - offering quick installation but lacking sufficient holding power, or providing strong fastening strength while failing to meet the latest environmental standards. To solve this problem, it is important to choose the supplier carefully. Fong Prean Industrial, with nearly 4 decades of experience in developing customized construction fasteners, is specialized in solving customers' fastening problems. Under the efforts of the strong and experienced R&D team, in recent years, it has been assisting customers in Europe, the U.S., Japan, and other 25 countries to develop many creative and functional fastening solutions. The MS series, in particular, has repeatedly made a splash in many important international exhibitions.

Patented MS Wood Screws, Must-Haves for Those Valuing Efficiency and Safety

Fong Prean mainly produces stainless/carbon steel customized construction screws with sizes ranging from 9 to 400mm. Its monthly production capacity is up to 2,500 tons, with flexibility to meet specific customer requirements. The G2 drywall screw is engineered to significantly reduce camout and installation errors, ensuring a faster and more reliable fastening process. Another signature product line is the MS wood screw series, which is designed based on the hardness and structure of different wood and can be used without pre-drilling. Common problems found with conventional screws- such as edge splitting, burrs, and insufficient holding power- can be effectively resolved with this practical and efficient fastening solution.

“The MS series is particularly well-suited for composite materials, hardwood flooring and outdoor decking. The MS Twister, designed for wood-towood applications, MS Reamer for hardwood-towood, and MSword for hardwood-to-hardwood all require no pre-drilling, which significantly reduces installation steps and minimizes the risk of edge splitting. Their specially engineered head design ensures a flush finish with no surface burrs, and a variety of thread and point designs enhance holding strength, resulting in safer and more reliable fastening,” said Fong Prean Manager Chia-Ling Wu.

What’s New- MS Sharp-Drill Point

In view of the fact that customers are paying more attention to “faster installation”, “less splitting”, “improved holding power” and “environmental protection and compatibility with new tools”, Fong Prean continues to develop products in cooperation with customers in order to gain a greater competitive edge. The recently launched MS Sharp-Drill Point Screw is designed for fastening MDF to wood, light gauge steel, aluminum and other substrates. Its uniquely engineered sharp drill tip allows for easy penetration into composite materials, while the MS head delivers a clean countersink without pre-drilling- achieving high fastening efficiency while minimizing the risk of cam-out and edge splitting in composite panels and interior finishing applications.

“With a highly integrated, agile and flexible custom development process- including independent inhouse tooling design, product forming, heat treatment, and quality control- we are able to quickly transform customer ideas into production-ready, highperformance solutions,” said Wu.

ETA Certified.

Realizing the Green Manufacturing Mission

From raw material to final shipment, Fong Prean's automated and modularized process follows the ISO 9001, ISO 14001, CE, ETA and other quality management certifications. Its data-based tracking system and regular annual internal audits and third-party inspections allow it to assure customers of consistently high product quality. As part of its commitment to sustainability, Fong Prean is actively promoting ISO 14064 GHG inventory implementation and has equipped its facilities with real-time energy monitoring systems. These efforts support green manufacturing through material reduction, energy optimization, and enhanced employee awareness—further aligning its production practices with global environmental goals.

“We live for solving problems.” More than just a motto, this statement reflects Fong Prean’s core philosophy. In the face of rising raw material costs, unstable supply chains, CBAM regulations and U.S. tariff adjustments, Wu emphasized, “We will continue to support our customers with strong adaptability and product development capabilities— helping them stand out amid increasing ESG carbon-reduction requirements across Europe, the U.S., and beyond. Our goal is to collaborate with forward-thinking customers to design solutions that meet real market needs, maximize product value, and together lead the fastener industry into a new era of efficiency, innovation, and sustainability.”

Fong Prean contact: Chia-Ling Wu, Manager Email: ling@ms.fongprean.com.tw

The Impact of U.S. 25% Tariff on EU Fastener Exports

Introduction

On March 12, 2025, the U.S. government announced a 25% tariff on a broad spectrum of EU imports, targeting products like steel, aluminium, and derivatives, including fasteners. This move aimed to address trade imbalances and protect domestic industries from foreign competition. The tariffs affected approximately €26 billion worth of EU exports, representing about 5% of the EU's total goods exports to the U.S.1

The tariffs' impact extends beyond the industry, affecting the broader EU economy. European Central Bank President Christine Lagarde warned that a 25% U.S. tariff on European imports could reduce eurozone growth by 0.3 percentage points in the first year. If the EU were to implement retaliatory measures, this reduction could deepen to about 0.5 percentage points. Additionally, these measures, coupled with a weaker euro economic structure, could raise inflation by around 0.5 percentage points in the short term.2

The EU's Fastener Industry at a Glance

The EU fastener industry is a significant sector, comprising numerous SMEs that manufacture a wide range of products, from simple screws to specialized components for high-tech applications. In 2023, the EU exported approximately US$16.6 billion worth of fasteners, with the United States being the second largest country importer, accounting for 7.4% of these exports (approximately US$1.23 billion). In 2024, these exports exceeded US$1.5 billion. This data underscores the critical importance of the U.S. market to the EU's fastener industry, highlighting the potential impact of any trade policies affecting this sector.

Immediate Economic Impact on Fastener Exports

The Guardian indicates that the threatened 25% tariffs on EU imports could lead to a significant reduction in EU exports to the U.S., potentially decreasing them by 15-17% and contracting the EU economy by 0.4% 3 Based on this trend, it is predicted that the fastener market could experience an immediate 15% decline in EU fastener exports to the U.S. within the first quarter following the imposition of the 25% tariff, resulting in a loss of approximately €46 million.

Industry-Specific Consequences

Automotive Sector

The automotive industry, a major consumer of fasteners, faces significant challenges due to the tariffs. European carmakers, particularly in Germany, have experienced a substantial decline in exports, estimated at nearly 20%. This downturn not only affects manufacturers but also reverberates through the supply chain, impacting suppliers and related industries.4

1https://luxembourg.representation.ec.europa.eu/actualites-et-evenements/actualites/eu-countermeasures-us-steel-and-aluminium-tariffsexplained-2025-03-12_en

2https://www.reuters.com/markets/europe/euro-zone-inflation-could-jump-growth-sink-trade-war-with-us-lagarde-says-2025-03-20/

3https://www.theguardian.com/business/2025/feb/27/donald-trump-tariffs-on-eu-imports-could-trigger-economic-turmoil

➊ Impact on German Carmakers

German automotive manufacturers such as BMW and Daimler have reported significant financial impacts due to the tariffs. BMW anticipates a €1 billion reduction in profits this year, attributing this decline to U.S. tariffs and European Union duties on China-made electric vehicles. This profit reduction represents a 36% decrease from the previous year, with earnings before taxes falling to €11 billion from €17 billion.5

Similarly, Daimler Truck has reported disruptions from tariffs, leading to the implementation of a €1.1 billion cost-cutting program. 6

➋ Supply Chain and Related Industries

The decline in automotive exports has a cascading effect on the supply chain. Suppliers of components, including fasteners, face reduced demand, leading to decreased production and potential layoffs. Industries related to automotive manufacturing, such as steel and aluminum producers, logistics providers, and dealerships, also experience negative impacts due to the reduced output of vehicles.

➌ Broader Economic Implications

The German economy, heavily reliant on its automotive sector, faces broader economic challenges due to the tariffs. The resulting production and sentiment disruptions could significantly affect the German economy.7

Construction and Infrastructure

The construction sector, another significant user of fasteners, is grappling with increased costs. Projects that rely on imported fasteners from the EU are experiencing budget overruns, leading to delays and, in some cases, cancellations. This situation hampers infrastructure development and affects employment within the sector

SMEs and Employment

SMEs, which constitute a large portion of the EU's fastener industry, are particularly vulnerable. The decline in exports has led to reduced revenues, forcing some companies to downsize or cease operations. Consequently, there has been a notable increase in unemployment rates in regions heavily dependent on fastener manufacturing.

EU's Retaliatory Measures

In response to the U.S. tariffs, the EU announced a series of countermeasures. On April 1, 2025, the EU reinstated previously suspended tariffs on U.S. products, including motorcycles, whiskey, and jeans, affecting approximately €8 billion worth of goods. Additionally, the EU plans to implement new tariffs targeting around €18 billion worth of U.S. exports, with products ranging from agricultural goods to industrial equipment.8

Global Supply Chain Disruptions

The tariffs have disrupted global supply chains, compelling companies to seek alternative suppliers or relocate production facilities. This realignment has led to increased operational costs and inefficiencies, affecting the competitiveness of both EU and U.S. manufacturers on the global stage.

Long-Term Economic Projections

Analysts predict that if the tariffs remain in place, the EU could face a contraction of 0.4% in its economy, while the U.S. economy might shrink by 0.17%. These projections underscore the detrimental effects of prolonged trade disputes on economic growth and stability.9

Diplomatic Efforts and Future Outlook

Both the EU and the U.S. have expressed willingness to engage in negotiations to resolve the trade dispute. However, reaching a consensus requires addressing underlying issues such as trade imbalances and market access. The outcome of these negotiations will significantly influence the future of transatlantic trade relations and the stability of global markets.

Conclusion

The U.S. 25% tariff on EU fastener exports has significantly disrupted trade, impacting industries such as automotive, construction, and manufacturing. European fastener producers, especially SMEs, face declining revenues and competitiveness in the U.S. market, leading to potential job losses and economic strain. Meanwhile, American importers and manufacturers are grappling with higher costs and supply shortages, which could contribute to inflation and reduced industrial output. These economic pressures highlight the broader consequences of protectionist policies, which often result in unintended harm to both exporters and importers.

To mitigate these challenges, policymakers must engage in constructive dialogue and explore collaborative solutions that promote fair trade. Instead of prolonged tariffs that strain global supply chains, efforts should focus on revising trade agreements, offering exemptions for critical industries, or fostering joint manufacturing initiatives. A cooperative approach would help restore balance to transatlantic trade, ensuring long-term stability, protecting jobs, and supporting sustainable economic growth for both the U.S. and the EU.

4https://www.theguardian.com/business/2025/feb/27/donald-trump-tariffs-on-eu-imports-could-trigger-economic-turmoil

5https://www.ft.com/content/8b733479-d7a5-4c88-97a1-60c3f3846e7c

6https://www.thetimes.com/business-money/companies/article/bmw-says-trumps-tariffs-will-cost-it-1bn-this-year-38nvcfdjb

7https://www.forbes.com/sites/neilwinton/2019/02/18/u-s-tariff-action-could-cost-german-carmakers-more-than-7-billion-report/

8https://luxembourg.representation.ec.europa.eu/actualites-et-evenements/actualites/eu-countermeasures-us-steel-and-aluminium-tariffsexplained-2025-03-12_en

9https://www.theguardian.com/business/2025/feb/27/donald-trump-tariffs-on-eu-imports-could-trigger-economic-turmoil

Copyright owned by Fastener World Article by Behrooz Lotfian

Building Flexible Supply Chains-

A-Stainless International, which has more than 30 years of experience in the field of stainless steel fasteners and wire, held a simple opening ceremony for its new factory in Vietnam on April 25th this year. This modern and well-planned factory is not only the first attempt of A-Stainless' overseas investment, but also a very important milestone for it to respond to the current changes in the international situation and strengthen its services to the customers in Southeast Asia, Europe and the U.S. which are its major export destinations.

Specialized in Stainless Steel Products in a Favorable Location

The new 5,000 sq m factory is located in Thai Ha Industrial Park, Ha Nam Province, in the northern region of Vietnam, less than 100 km from the capital “Hanoi”, the eastern port city “Hai Phong”, and the airport. Convenient land, air, and sea transportation allows A-Stainless to serve local and overseas customers more efficiently. The factory is dedicated to the manufacturing of stainless steel screws and is expected to be staffed with 80 employees and equipped with 100 sets of heading, thread rolling, thread cutting and saw slotting machines as well as 1 passivation line to satisfy more customers' demand for stainless steel screws.

“The new production line has launched its trial run since this April, and if everything goes well, we expect the monthly production to reach 120 tons. We’ll also gradually work towards the goal of reaching 200 tons by 2026 and the max. capacity of 300 tons in due course,” said A-Stainless.

Diversifying Geopolitical Risks and Embracing Greater Competitiveness

The delicate and sensitive political tug-of-war between the U.S., China, and Taiwan has always been

A-STAINLESS Adds New Vietnam Factory

an essential factor affecting the long-term stability of the cross-strait supply chains. In view of the regional tension caused by China's military drills in the Taiwan Straits during the visit of U.S. House of Representatives Speaker Nancy Pelosi to Taiwan about 2 years ago, and based on customers' concerns about whether there would be disruptions in Taiwan’s supply chains and the consideration of reducing geopolitical risks, A-Stainless after evaluating various aspects chose to set up a factory in Vietnam, where there are sufficient land, labor force, favorable policies, and enjoys preferential tariff rates from EVFTA.

“In addition to avoiding geopolitical risks, our Vietnam factory also enjoys the benefits of lower tax rates to Europe, abundant labor force, and proximity to the emerging electronics market in the northern region of Vietnam, thus making us more competitive. Coupled with the operational management and technical support from the Taiwan headquarters, the Vietnam factory certainly will be complementary to A-Stainless' business expansion and market development,” said A-Stainless.

Localized Development and Enhance Technology R&D Capabilities

Over the past 2 years, the fastener industry has been hit by Covid, supply chain disruptions, geopolitics and destocking, etc., resulting in a significant slump in revenue. The industrial recovery has become even more uncertain due to U.S. President Trump's drastic tax increase in 2025 after he took office. However, A-Stainless is not worried about this situation at all. “In order to survive in a competitive environment, it is very important to improve the management and technology R&D capabilities of the company. In the future, we hope to strengthen the training of local management and technical personnel in the Vietnam factory, deepen localization, and more importantly, create a more flexible and reliable supply chain for customers,” added A-Stainless.

Copyright

owned by Fastener World / Article by Gang

Hao Chang, Vice Editor-in-Chief

A-Stainless contact: Mr. Asser Liu Email: astainless@hibox.hinet.net

In 1841, the English engineer and inventor Joseph Whitworth presented his paper, “ A Uniform System of Screw Threads” to Great Britain’s Institution of Civil Engineers. This paper was a proposed solution to an Industrial Revolution problem vexing Great Britain and other western countries. Although it started with the burgeoning railroads, this problem was being experienced globally throughout all industries relying on newly developed mechanization. Specifically, when threaded fasteners failed or needed to be replaced, there was no uniformity among manufacturers. Without any confidence in interchangeability, replacing a broken part required going back to the original manufacturer, which often was inconvenient and sometimes impossible. Whitworth’s uniform thread design solved this problem and was quickly adopted as a national standard, propelling it into the history books as the world’s first industrial standard.

Today, there are thousands of fastener standards, including global standards like ISO, regional standards like JIS, ANSI, and DIN, and individual user standards like Boeing, Honda, and Bosch. Standards fall into one of two categories, Consensus Standards and Nonconsensus Standards. Consensus Standards are generated by Consensus Standard’ s organizations, which means they are developed by a diverse and multi-talented group of experts using a formal set of procedures and rules that guarantee they reach consensus regarding the contents of the final standard. Non-consensus Standards are developed by individuals and individual organizations to best represent their specific interests.

Standards related to fasteners can be divided into several categories:

1. Product Standards: These standards provide all the requisite information to be able to produce a part or family of parts. Foremost they provide dimensional information but may have other information required to make or control the proper manufacture of parts as well.

2. Material Standards: This is a slightly broader range of standards, as it includes standards related to raw materials, performance (specifically mechanical performance), heat treating, plating and coatings, and testing.

3. Testing Standards: This is a small group of standards that are specifically written to detail one or more fastener test methods.

4. Procurement Standards: These are generally unique to aerospace and defense fasteners and provide requirements related to quality, performance, and procurement.

5. System Standards: These are broad standards that detail qualityrelated, business management systems, some are intended to encompass all industries and others are specific to fasteners.

In North America, there are several Consensus Standard’s organizations that generate fastener standards. The primary ones include:

• American Society of Mechanical Engineering (ASME), predominantly providing product standards. Fastener-related standards come from two different technical committees, B18 (fasteners) and B1 (threads).

• American Society of Testing and Materials (ASTM), predominantly providing material and testing standards. Fastener-related standards come mostly from the Fastener Committee F16 although a number of them are derived from the steel committee A01.

North American Fastener Standards 2025 Update

• Society of Automotive Engineers (SAE), providing mostly material and a few product standards. Fastenerrelated standards come primarily from their Fastener Committee, although aerospace fastener material standards come from their Aerospace Material Division.

• National Aerospace Standards Committee (NASC), providing product, material, testing, and procurement standards for aerospace fasteners.

• International Organization for Standardization (ISO), providing product, material, and system standards. ISO is unique because it is a world organization and, thus, delegates to the fastener committee, TC2, represent different countries or regions.

• Research Council on Structural Connections (RCSC), exclusively focused on structural bolting.

• National Association of Corrosion Engineers (NACE), with several fastener standards, mostly focused on the oil and gas industry.

• American Petroleum Institute (API), with several material standards exclusively for oil and gas industry fasteners.

There is always debate over which standards, Consensus or Non-consensus are better. Good arguments can be made for both sides and, the best answer is, most likely, “ it depends” For example, if you are an automotive OEM and have some specific requirements that you wish to maintain, a company proprietary, Nonconsensus Standard is probably a better choice. One of the big advantages, however, of most of the Consensus Standards is that one of the rules of the Consensus Standard’ s organization is that standards must be kept up to date. Each organization has its own rules, but most require that the standard be reviewed and either updated or reapproved every five to seven years. This is good practice because it doesn’t allow these standards to fall too far behind the state of the industry. Although this is really a necessity, it can often be frustrating because it means that these standards are continuously changing, and users must be continually attentive to recent and upcoming additions and revisions.

The following are some of the current activities of these fastener committees:

ASME:

The ASME fastener committee B18 meets twice a year. The last meeting was in September 2024 and the next meeting was held in April 2025 at the IFI headquarters in Cleveland Ohio. The following are highlights of some of the recent revisions and work of this committee.

• ASME B18.6.3: “Machine Screws, Tapping Screws, and Metallic Drive Screws (Inch Series)”. A new revision of this standard was published in the first half of 2024. Although it was a significant editorial update from the 2013 revision, technical changes include a reduction of the core hardness to not exceed HRC36 for case hardened tapping screws, revised guidance regarding the Hydrogen Embrittlement Test, and revised underhead thread rolling parameters on tapping screws to reduce the risk of rolling threads into the fillet radius.

• ASME B1.1: “Unified Inch Screw Threads”. This standard was revised and published in May of 2024. It corrected and revised several issues from the 2019 revision.

• ASME B18.3: “Socket Cap, Shoulder, Set Screws, and Hex Keys (Inch Series)”. The Subcommittee that is responsible for this standard is working on a major revision. Currently the only allowable material choice is to use ASTM A574. This ASTM standard provides only one strength grade, equivalent to 180,000 psi. Unfortunately, this strength level makes these specific parts susceptible to hydrogen embrittlement, especially when they receive a zinc electroplated surface finish. Although the standard recommends avoiding this practice, it does not outright disallow it, and thus, it gets commonly applied. Metric socket parts can also experience this issue, but the metric standard includes option for property classes lower than 12.9 (the metric equivalent of a 180,000 psi strength fastener). To correct this, a task group in this ASME subcommittee has been working on a revision that will include Grade 5 and 8 inch socket products. Work is proceeding but likely will not be completed until the latter half of 2025 or sometime in 2026.

ASTM:

The ASTM fastener committee F16 meets twice a year. The last meeting was in November 2024 and the next meeting is held in Toronto Canada in May 2025.

The following ASTM Standards were revised in 2024:

• ASTM A193/A193M: “Alloy Steel and Stainless-Steel Bolting for HighTemperature or High-Pressure Service and Other Special Purpose Applications”

• ASTM A320/A320M: “Alloy Steel and Stainless-Steel Bolting for LowTemperature Service”

• ASTM A394: “Steel Transmission Tower Bolts, Zinc-Coated and Bare”. This standard was not changed but was reaffirmed to the last revision in 2008.

• ASTM A540/A540M: “Alloy Steel Bolting for Special Applications”

• ASTM A962/A962M: “Common Requirements for Bolting Intended for Use at Any Temperature from Cryogenic to the Creep Range”

• ASTM F880: “Stainless Steel Socket, Square Head, and Slotted Headless Set Screws”

• ASTM F593: “Stainless Steel Bolts, Hex Cap Screws, and Studs”

• ASTM F3148: “High Strength Structural Bolt Assemblies, Steel and Alloy Steel, Heat Treated, 144KSI Minimum Tensile Strength, Inch Dimensions” This standard was not changed but was reaffirmed to the last revision in 2017.

• ASTM A194/A194M: “Carbon Steel, Alloy Steel, and Stainless-Steel Nuts for High Pressure or High Temperature Service or Both”

• ASTM A563/A563M: “Carbon and Alloy Steel Nuts (Inch and Metric)”

• ASTM F467: “Nonferrous Nuts for General Use”

• ASTM C1513: “Steel Tapping Screws for Cold-Formed Steel Framing Connections”

• ASTM F436/F436M: “Hardened Steel Washers Inch and Metric Dimensions”

• ASTM F3393: “Zinc Flake Coating Systems for Fasteners”

• ASTM F606/606M: “Standard Test Methods for Determining the Mechanical Properties of Externally and Internally Threaded Fasteners, Washers, Direct Tension Indicators, and Rivets”

So far, only the following ASTM Standard has been revised in 2025:

• ASTM F3125/F3125M: “High Strength Structural Bolts and Assemblies, Steel and Alloy Steel, Heat Treated, Inch Dimensions 120KSI, 144KSI,and 150 KSI Minimum Tensile Strength, and Metric Dimensions 830 MPa and 1040 MPa Minimum Tensile Strength”. This was a significant revision as it added the 144KSI strength grade for all styles and types of structural bolts.

Highlights of future activity include:

• Currently there are almost seventy work items open in the F16 Committee, impacting forty different fastener standards. Many of these are relatively simple, minor changes, but having so many open work items signifies that this committee is currently very busy, and many standards are likely to be revised in 2025 and 2026.

• A proposal is underway to provide a galvanizing option for A490 (high strength) structural bolts.

• A guideline for best practices regarding fastener test reporting has been in development for several years and may see completion in 2025 or 2026.

SAE:

The SAE Fastener Committee met in September 2024 and will have its next meeting in September 2025.

Highlights of recent activity include:

• Combination of SAE J1701 and 1701M- These standards are the inch and metric versions of “Torque-Tension Tightening for Inch Series (J1701) and Metric Series (J1701M) Fasteners”. These have been combined into one standard that is expected to publish in early 2025.

• SAE J995 - “Mechanical and Material Requirements for Steel Nuts”- There is currently a work project on this standard to clarify the usage of screw machining materials.

• SAE J58- “Flanged 12-Point Screws”. There is currently a work project to revise and update this standard.

• SAE J429: “Mechanical and Material Requirements for Externally threaded Fasteners”. There is a significant revision of this document currently being worked on by a task group. It was balloted in early 2024 but is currently on-hold pending the proposed addition of Grade 5 and 8 versions to ASME B18.3 Socket Products.

ISO:

The ISO Fastener Committee, TC2, is not a regional Consensus Standard organization, but rather the global activity of many regional fastener organizations. In the U.S., ISO fastener activities are primarily hosted by the ASME Fastener Committee B18, Subcommittee 4. As most metric fasteners worldwide are governed by the standards under the jurisdiction of this committee, it is a very important one.

Highlights of recent activity include revisions to the following standards:

• ISO 15330 : “Preloading Test for the Detection of Hydrogen Embrittlement- Parallel Bearing Surface Method”

• ISO 10684: “ Hot Dip Galvanized Coatings”

• ISO 898-1: “ Mechanical Properties of Fasteners Made of Carbon Steel and Alloy Steel- Part 1: Bolts, Screws and Studs with Specified Property Classes- Coarse Thread and Fine Pitch Thread”

• ISO 13809: “Hexalobular Socket Set Screws”

• ISO 6157-1: “Surface Discontinuities- Part 1: Bolts, Screws, and Studs for General Requirements”

• ISO 6157-3: “Surface Discontinuities- Part 3: Bolts, Screws and Studs for Special Requirements”

RCSC:

Unlike the other Consensus Standard’s organizations listed above, which focus on a broad range of fastener topics, the Research Council on Structural Connections (RCSC), is singly focused on user guides for structural steel bolting. Its hallmark standard, the “Specification for Structural Joints Using High-Strength Bolts”, is used worldwide by steel erectors and construction trades. This document has been undergoing a major overhaul and was expected to go out for its second ballot in the first quarter of 2025. Likely approval and publication will occur in the latter half of 2025.

Summary:

As is obvious above, standards are always changing. Consensus Standard’s organizations incorporate rules within their procedures to make sure that their standards do not get stale and are evolving to incorporate the latest development and understanding in the industry. In fact, an estimated 20%-25% of all consensus standards are under review or revision at any point in time. This is a big advantage, since it helps industry stay abreast of a continuously changing environment. However, it also creates a challenge because with so many standards in use and so often changing, users must be prepared to keep abreast of the changes. That is not always as simple as one might think. Therefore, users are encouraged to find ways to stay abreast of changes and implement actions in their management systems that will keep them up to date.

Reconstruction Business Opportunities in Ukraine

At the time of writing this article, discussions for a ceasefire between Russia and Ukraine are ongoing. While the exact date of an agreement remains uncertain, there is hope and expectation that it will be reached within this year. The reconstruction of Ukraine presents a monumental task that encompasses rebuilding infrastructure, revitalizing the economy, and restoring the social fabric of the nation. The ongoing conflict has inflicted extensive damage across various sectors, necessitating a comprehensive and collaborative approach to recovery. This article delves into the current landscape of reconstruction business opportunities in Ukraine, drawing insights from recent assessments and upcoming international conferences dedicated to Ukraine's recovery.

Assessing the Damage and Identifying Needs

As of February 2025, the World Bank released an updated assessment detailing Ukraine's recovery and reconstruction needs. The report highlights that the housing sector has suffered the most significant damage, with estimated long-term needs approaching US$84 billion. Following closely are the transport sector at nearly US$78 billion, the energy and extractives sector at approximately US$68 billion, commerce and industry at over US$64 billion, and agriculture at more than US$55 billion. These figures underscore the vast scope of reconstruction required and the corresponding opportunities for businesses across these sectors, including the fastener industry, which plays a crucial role in construction, infrastructure, and industrial manufacturing.

Sector-Specific Opportunities

Housing and Infrastructure

The extensive damage to Ukraine's housing sector presents substantial opportunities for construction and engineering firms. Rebuilding residential areas requires not only physical reconstruction but also the integration of modern urban planning principles to create sustainable and resilient

communities. International construction companies have the chance to collaborate with local entities to implement innovative building techniques and materials, ensuring durability and energy efficiency. The demand for high-quality fasteners, structural components, and reinforcement materials will be significant, presenting an opportunity for manufacturers and suppliers in the fastener industry.

Energy Sector

Ukraine's energy infrastructure has been severely impacted, necessitating a comprehensive overhaul. This situation opens avenues for investments in renewable energy projects, such as wind and solar power, aligning with global sustainability goals. The decentralized nature of renewable energy systems offers resilience against potential future disruptions. Public-private partnerships can play a crucial role in financing and implementing these projects, with international companies already expressing interest in contributing to Ukraine's clean energy

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development. Wind turbines, solar panel installations, and electrical grid reconstruction will require specialized fasteners and assembly components to ensure structural integrity and longevity.

Agriculture

Agriculture remains a vital component of Ukraine's economy. The reconstruction phase offers opportunities to modernize agricultural practices, enhance supply chains, and improve food security. Investments in technology-driven farming, storage facilities, and distribution networks can significantly boost productivity and resilience in this sector. The development of modernized storage silos, irrigation systems, and mechanized farming equipment will necessitate high-performance fastening solutions, reinforcing the role of the fastener industry in agricultural infrastructure.

Technology and Defense

The conflict has accelerated the adoption of advanced technologies in defense and civilian sectors. Ukrainian startups and tech companies are developing innovative solutions with applications beyond the military sphere. Investors have the opportunity to support ventures that contribute to national security and have commercial potential in global markets. Defense and aerospace applications require specialized, high-strength fasteners, making this an essential market segment for companies supplying precision fastening solutions.

Mobilizing Private Sector Investments

The scale of Ukraine's reconstruction necessitates substantial private sector involvement. International financial institutions, such as the International Finance Corporation (IFC), are actively exploring avenues to attract private investments. The IFC's report, "Private Sector Opportunities for a Green and Resilient Reconstruction in Ukraine," identifies potential areas where private finance can support rebuilding efforts, emphasizing the importance of regulatory reforms to create an enabling environment for investors. Moreover, the European Union has launched a call for expressions of interest to mobilize private EU investments in critical areas supporting Ukraine's rebuilding efforts. This initiative aims to engage businesses in sectors such as infrastructure, energy, and digitalization, providing financial incentives and support mechanisms to mitigate investment risks.

Challenges and Considerations

While the reconstruction of Ukraine presents numerous business opportunities, several challenges must be addressed to ensure sustainable and effective recovery:

• Security Concerns: Ongoing security issues can deter investments. Establishing robust security guarantees is crucial to reassure investors and facilitate economic activities.

• Regulatory Environment: Streamlining bureaucratic processes and implementing transparent regulations are essential to attract and retain private sector participation. Anti-corruption measures must be reinforced to build trust among international partners.

• Financing Mechanisms: Innovative financing solutions, including blended finance models and risk-sharing instruments, are needed to mobilize the required capital for large-scale projects.

• Human Capital: Investing in workforce development ensures that reconstruction efforts are supported by skilled labor, enhancing the quality and efficiency of projects.

Looking Ahead: The URC2025 in Rome

As Ukraine continues its path toward recovery, the URC2025 in Rome will serve as a crucial platform for fostering collaboration and securing international investments. The event is expected to produce tangible commitments from governments, financial institutions, and private enterprises. These commitments will be instrumental in driving forward infrastructure projects, economic development initiatives, and sector-specific revitalization plans. One of the key aspects of URC2025 will be the establishment of structured frameworks for public-private partnerships. These frameworks will not only define the allocation of resources but also set regulatory standards to streamline project implementation. Additionally, discussions on sustainability and resilience will take center stage, ensuring that Ukraine’s reconstruction efforts align with long-term environmental and economic stability. With the active participation of stakeholders from across the globe, the Rome conference will play a vital role in shaping the next phase of Ukraine’s reconstruction. Businesses looking to engage in this process should closely monitor the outcomes of the conference, as new funding mechanisms, investment opportunities, and regulatory adjustments will likely emerge from the discussions.

Conclusion

Ukraine's reconstruction presents a vast array of business opportunities across multiple sectors, from infrastructure and energy to agriculture and technology. However, successful engagement in these projects requires a strategic approach, taking into account security concerns, regulatory challenges, and financing mechanisms. International cooperation through forums like URC2025 will be essential in mobilizing resources and ensuring a coordinated recovery effort. For businesses and investors, now is the time to explore potential partnerships, engage in policy discussions, and align their strategies with Ukraine's long-term development plans. The reconstruction of Ukraine is not just a necessity, it is an opportunity to build a more resilient, modern, and prosperous nation.

References

World Bank, "Updated Ukraine Recovery and Reconstruction Needs Assessment," February 2025. Available at: worldbank.org Ukraine Recovery Conference Official Website. Available at: urc-international.com International Finance Corporation (IFC), "Private Sector Opportunities for a Green and Resilient Reconstruction in Ukraine." Available at: ifc.org

European Commission, "EU Launches Call for EU Business Investment in Ukraine’s Recovery and Reconstruction," November 2024. Available at: enlargement.ec.europa.eu

Copyright owned by Fastener World / Article by Shervin

Shahidi Hamadani

Trump Wields a Heavy Blade Against the What’s Next for Manufacturers? Auto Parts Supply Chain:

On March 26, 2025, U.S. President Donald Trump signed a proclamation invoking Section 232 of the 1962 Trade Expansion Act to impose a 25% tariff on all imported automobiles and certain auto parts, in order to cope with significant threats to national security. The policy took effect for vehicles on April 3, 2025, and applied to parts starting May 3, 2025. This measure has already caused major disruptions in the global automotive supply chain. Key affected parts include engines, transmissions, powertrain components (including various drivetrain parts), electrical components (critical vehicle electronics), suspension systems, safety parts (such as airbags and seat belts), and lithium-ion batteries for EVs.

On April 2, Trump announced reciprocal tariff effective April 9 and then paused it for 90 days. Fortunately for auto and auto parts manufacturers, given that items already subject to Section 232 tariffs are exempt from these reciprocal tariffs, these manufacturers are spared from additional financial burdens.

However, the initial 25% tariff under Section 232 has already sent shockwaves through the global auto parts supply chain, prompting global widespread criticism directed at the White House. This article summarizes public statements from leading automotive associations and outlines emergency measures by manufacturers to address the crisis, aiming to provide potential solutions for affected businesses.

Trump's Auto Parts Tariffs Face Opposition from Industry Associations

On February 3, the Auto Body Parts Association (ABPA) sent a letter to its members warning that Trump's tariffs would increase costs for parts and repairs. While some members source materials from unaffected regions, rising global material and logistics costs are likely to impact pricing. ABPA cautioned that tariffs could lead to inefficiencies and delays in the supply chain, as rising tariffs on major suppliers could cause demand shifts that might challenge procurement processes across the industry and extend delivery times.

Bill Hanvey, President and CEO of the Auto Care Association, emphasized the severe consequences for the automotive aftermarket industry, U.S. consumers, and businesses: "Tariffs negatively impact American businesses and consumers, disrupt supply chains, raise costs, and weaken our industry's global competitiveness. The U.S. automotive aftermarket relies heavily on parts imported from Canada and Mexico. Tariffs will cause inefficiencies and cost increases borne by domestic businesses and consumers, potentially delaying vehicle repairs and compromising road safety."

Flavio Volpe, President of Canada's Automotive Parts Manufacturers' Association (APMA), criticized the tariffs as unreasonable due to the deeply integrated manufacturing processes between the U.S. and Canada. He noted that a single part may cross borders up to eight times before final assembly into a vehicle, with auto parts operating on thin profit margins that make a 25% tariff impractical. Volpe warned that enforcing such tariffs could leave only "purely American-made vehicles" in the market. If the policy leads to industry paralysis, legal action may be pursued by enterprises. An APMA survey of 139 suppliers revealed that 97% of companies fear the tariff stress could put small suppliers in a financial dilemma. Since many

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of these firms produce critical components, widespread bankruptcies could trigger significant supply chain disruptions.

The Mexican National Auto Parts Industry Association (INA), representing over 700 manufacturers, stated that tariffs would raise average U.S. car prices by USD 3,000. Cutting off auto imports from Mexico and Canada entirely would necessitate USD 50 billion in investments to build 18 new plants in the U.S., a factor influencing Trump's decision to delay Mexican auto tariffs.

Taiwanese Auto Parts Manufacturers Adapt to Try to Difuse Trump’s Tariff Bomb

Taiwan’s automotive parts supply chain has demonstrated remarkable flexibility in responding to U.S. tariff challenges, with many companies implementing proactive strategies ahead of the tariff enforcement. Global PMX has strategically adopted the "Free On Board (FOB)" shipping method as an immediate countermeasure. This approach shifts the burden of import duties, taxes, and customs clearance to buyers at the destination port, allowing the company to maintain operational efficiency without directly absorbing the tariff impact. This contractual solution redistributes tariff responsibilities without requiring immediate production changes.

Tsang Yow Industrial, a transmission system manufacturer, has embraced a more comprehensive restructuring strategy by diversifying its production locations. The company is leveraging its existing Chiayi factory (in Southern Taiwan) while expanding production capacity in Southeast Asia. This geographic diversification reduces reliance on any single manufacturing hub for exports to the U.S., providing flexibility amid evolving tariff policies. Additionally, Tsang Yow Industrial is accelerating investments in the semiconductor business, and will mass-produce key components for front-end semiconductor processing equipment, diversifying its portfolio to mitigate tariff risks.

Laster Tech, a leading LED automotive lighting module manufacturer, is aligning with the global trend of supply chain localization. It plans to collaborate with Taiwanese manufacturers in Thailand and Mexico to establish a production division system. This strategy minimizes operational risks while maintaining market agility. Laster Tech has also reached agreements for customers to fully absorb any future tariff costs, ensuring stable profit margins.

From the strategies employed by these Taiwanese companies, it is evident that they are overcoming tariff challenges by redistributing tariff responsibilities through contracts, implementing geographic diversification strategies, supplying products across industries, or establishing new divisional systems with Taiwanese companies overseas. These approaches enable them to break free from the constraints imposed upon them and survive in challenging circumstances. Their experiences can serve as valuable references for readers.

Automotive Industry Responds Diversely Amid Challenges

Due to the highly interconnected nature of automobiles and their parts, the reactions of automakers and related industries are as crucial as those of parts manufacturers. Foley & Lardner, a Detroit-based law firm with over 200 automotive supplier clients, pointed out that Trump’s tariffs cannot reverse 30 years of industry dynamics within 30, 60, or even 90 days. "The U.S. currently lacks sufficient production capacity," they stated, emphasizing that mainstream automakers have yet to see profits from electric vehicle investments. The supply chain requires long-term stability and cannot withstand drastic changes within the next 24 months.

Ford CEO Jim Farley expressed concerns during a February investor meeting: "What we’re seeing is massive costs and chaos." To mitigate Trump’s tariff impacts, Ford has extended employee-exclusive discount programs to consumers, helping them save thousands of dollars.

Other automakers have adopted varied strategies to reduce tariff burdens. BMW has chosen to absorb part of the tariffs on vehicles manufactured in Mexico (March 12). Nissan has lowered prices on select models (April). Stellantis temporarily halted production of certain models in Canada (April 4). Ferrari raised prices on select high-performance models by 10% (March 27). Jaguar Land Rover suspended vehicle exports to the U.S. for one month starting in April (which was restarted since May). Volkswagen has completely halted exports to the U.S (April 7).

These measures demonstrate automakers respond to tariff challenges through absorbing tariff costs, adjusting pricing (both reductions and increases), partially pausing production, halting imports of lower-priced models, or suspending exports to the U.S.

Risk Management in the Era of Trump Tariffs

A Shift from “Global Free” to “Localized” Trade and Supply Chains

The combined Trump trade wars version 1.0 and 2.0 is dismantling decades of globally integrated manufacturing systems. By 2025, the world has entered an era where geopolitical priorities override economic efficiency. The U.S.-China conflict has transcended economics, with tariffs reshaping global supply chains into distinct blocs: pro-U. S., pro-China, pro-EU, as well as supply chain systems organized under bilateral or multilateral trade agreements. Beyond these major systems, smaller systems include partnerships among distributors and suppliers of various nations. Both large and small supply chain systems are undergoing restructuring to better withstand tariff shocks. Businesses must strategically align themselves with supply chain systems that offer the greatest resilience against tariff impacts during this process which drastic changes may ensue.

Fasten Your Seatbelt for "China Shock"

Unspokenly, Trump’s tariffs are largely aimed at China. Although the reciprocal tariffs raised against China on April 9 from 34% to 84% do not apply to Chinese automobiles or parts, these products already face a cumulative 45% tariff (25% under Section 232 plus an additional 20%). This is significantly higher than the 25% tariff imposed on similar products from other countries. To survive, Chinese automakers and parts manufacturers are going outward and integrating into more localized supply chain systems overseas. The influx of low-cost Chinese products is creating a "China Shock," disrupting markets worldwide. Recently an exclusive insider information provided to Fastener

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World by a major Japanese distributor reveals that Chinese low-cost products are infiltrating Japan’s supply chains, threatening the survival of local manufacturers over the next decade. Addressing China's aggressive supply chain invasion will be a critical issue for governments and businesses globally.

Cost Is No Longer the Priority—“Lowest Risk” Takes Center Stage

Howard Marks, one of the world's most prominent value investors, recently warned that predicting future trends has become far more difficult in an era of escalating tariffs and geopolitical tensions. With heightened uncertainty, global markets are expected to experience significant volatility this year. Companies establishing overseas operations or investments can no longer prioritize cost reduction as their primary consideration. Today’s factory location could become tomorrow’s liability due to abrupt tariff changes. The key lies in understanding the big picture of political and economic trends and approaching business investments from a risk diversification perspective. Only by operating in risk-resistant environments can companies achieve meaningful cost reductions in this volatile era.

Solutions for Auto Parts Manufacturers Amid the "Trump Risk"

The priority now for businesses is to "dilute" and mitigate the effects of Trump’s tariff bomb. While governments negotiate on behalf of national interests, manufacturers must take proactive steps. Here are some actionable strategies for reference:

1. Pursue Membership in Multilateral Trade Organizations

Manufacturers can advocate for government support to join trade blocs like CPTPP or RCEP and push for new free trade agreements (FTAs or BTAs) with aligned nations, helping companies wash out tariff impact from policy aspects.

2.

Actively Engage

in Distribution Supply Chains

Amid market chaos, opportunities abound as major distributors (especially leading buyers) rebuild their supplier networks— a critical moment for suppliers to grasp new orders and survival. Export-oriented manufacturers should seize this moment to increase visibility towards buyers through trade shows and other outreach efforts, creating more opportunities for themselves.

3. Minimize Exposure to Tariff Risks

Manufacturers can re-assess their supply chains to reduce tariff exposure. Potential approaches include:

• Sourcing materials or components from tariff-exempt regions.

• Completing certain manufacturing steps within the U.S. to qualify for tariff reductions.

• Establishing assembly operations in USMCA-compliant facilities in Mexico or Canada, which remain exempt from tariffs under current policies. At the time of writing, Trump has not imposed additional tariffs on goods covered by the United States-Mexico-Canada Agreement (USMCA).

• Developing multi-tiered manufacturing processes, producing high-value components in tariff-exempt locations.

4. Innovate and Expand Aftermarket Product Lines

Strengthen R&D capabilities to launch innovative products that competitors cannot easily replicate. Introduce unique value-added services or business models to increase product value density, thereby increasing profitability to absorb tariff costs.

5. Optimize Inventory and Pricing Strategies

Adjust contract terms to share costs through pricing or Delivered Duty Paid (DDP) clauses. Additionally, optimize inventory management to handle sudden order suspensions, minimizing marginal impacts caused by tariffs.

From another perspective, the "Trump Risk" can be likened to a pandemic without a virus—a replay of supply chain disruptions and breakdowns seen during COVID-19. As global trade systems fracture, new winners and losers emerge on freshly drawn starting lines. Now is the time for businesses to assess their position in this reshaped landscape. Are you ready for what’s coming?

Mexico: Still an Investment Option for Manufacturers Targeting the U.S. Market?

Introduction

Mexico has long been a significant player in global manufacturing, particularly for companies targeting the U.S. market. The country has positioned itself as a prime location for manufacturing due to its proximity to the United States, cost-effective labor, and extensive trade agreements. However, in the current climate of changing global dynamics, political shifts, and technological advancements, the question arises: is Mexico still a viable investment option for manufacturers targeting the U.S. market?

1. Historical Overview of Manufacturing in Mexico

Mexico has been an attractive location for manufacturing for decades, particularly in industries such as automotive, electronics, and textiles. The North American Free Trade Agreement (NAFTA), signed in 1994, marked a major turning point in Mexico's manufacturing sector. By eliminating tariffs on goods traded between the U.S., Canada, and Mexico, NAFTA provided manufacturers with a cost-effective way to produce goods in Mexico and export them to the U.S. market.

Over time, Mexico’s manufacturing capabilities grew, thanks to its skilled labor force, cost advantages, and logistical benefits. The country also developed a robust infrastructure to support manufacturing, including transportation networks, ports, and industrial parks. These factors, combined with relatively low labor costs, made Mexico a prime location for U.S.-targeted manufacturing.

In 2020, NAFTA was replaced by the United StatesMexico-Canada Agreement (USMCA), which updated trade provisions and further solidified the importance of Mexico as a manufacturing hub. While the shift from NAFTA to USMCA raised questions about potential impacts, it has generally been seen as an extension of the long-standing benefits for manufacturers in the region.

2. Geographic Proximity and Logistics

One of the primary reasons why Mexico continues to be an attractive investment option for manufacturers targeting the U.S. market is its geographic proximity to the United States. With an extensive border of over 1,900 miles, Mexico offers manufacturers the advantage of relatively short supply chains. This proximity allows manufacturers to quickly ship goods to U.S. markets, reducing transportation costs and minimizing lead times.

In addition, Mexico’s well-developed infrastructure supports the smooth flow of goods. Major ports like Manzanillo and Lazaro Cardenas on the Pacific Coast, as well as Veracruz on the Gulf of Mexico, are essential for international trade. The country’s network of highways, railroads, and logistics hubs further facilitates the efficient movement of goods.

Moreover, Mexico's position as a key player in the USMCA also means that goods manufactured in Mexico can enjoy tarifffree access to the U.S. market. This gives manufacturers an edge over competitors in other regions, where tariffs may apply.

Copyright owned by Fastener World / Article by Dr. Sharareh Shahidi Hamedani, UNITAR International University

3. Labor Cost

Advantage

Labor costs are a significant factor that makes Mexico an attractive destination for manufacturing. Mexico offers manufacturers access to a large, skilled workforce at a fraction of the labor costs found in the U.S. or Canada. According to the World Bank, the cost of labor in Mexico is around one-sixth of the cost in the U.S., which can result in substantial savings for companies that choose to establish manufacturing operations in the country.

This cost advantage is particularly beneficial for industries that rely heavily on labor, such as automotive manufacturing, electronics assembly, and textiles. As wages in countries like China have risen, Mexico’s labor costs remain relatively competitive, making it a more attractive destination for manufacturers looking to reduce production costs while maintaining high-quality output.

In addition to cost-effective labor, Mexico has a growing pool of skilled workers, particularly in engineering, electronics, and automotive sectors. This has allowed manufacturers to establish high-tech production lines and incorporate advanced manufacturing techniques while keeping costs under control.

4. Trade Agreements and Economic Stability

Mexico’s trade agreements have long been a cornerstone of the country’s attractiveness for manufacturers. The USMCA, which replaced NAFTA in 2020, preserves the framework for tariff-free trade between the U.S., Canada, and Mexico, ensuring continued access to North America's largest market. This agreement has been pivotal in maintaining smooth trade relations, reducing the risk of new trade barriers, and keeping the cost of production predictable for manufacturers. USMCA also introduced provisions that are beneficial for modernizing the trade framework, including more stringent labor rights protections and environmental safeguards, making it a forward-looking agreement.

Nowadays, the era of Donald Trump has marked a period of uncertainty and tension in U.S.-Mexico trade relations. Trump’s administration took a hard stance on trade, focusing on "America First" policies that included renegotiating trade agreements, particularly NAFTA, and threatening tariffs on goods imported from Mexico. His administration also imposed significant tariffs on steel and aluminium imports, which affected manufacturers in both countries. During this period, the U.S. also pushed for stricter regulations on the automotive industry, aiming to increase U.S. content in Mexican-made cars to ensure more production took place within the U.S. borders. The threat of these tariffs, combined with the uncertainty surrounding the renegotiation of NAFTA, led to some initial concerns about the future of trade relations between the two countries. However, the negotiation and eventual signing of the USMCA in 2020 under President Trump provided clarity for businesses, as it replaced NAFTA with updated provisions that offered continued tariff-free trade between the U.S. and Mexico. Although the renegotiation process was initially tense, USMCA ultimately provided a more stable and favorable framework for manufacturers, addressing new challenges such as the digital

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economy and e-commerce, and preserving key advantages such as the elimination of tariffs.

Global Trade Agreements and Economic Stability

On the other hand, Mexico has maintained and expanded its global network of free trade agreements (FTAs), securing deals with the European Union, Japan, and numerous Latin American nations. These agreements enhance Mexico's access to global markets, providing manufacturers with the opportunity to export beyond the U.S. and diversify their customer base. For example, the EU-Mexico FTA and Japan-Mexico FTA create new pathways for manufacturers to access some of the world’s most lucrative markets, further strengthening Mexico's position as a hub for international trade.

On the economic front, Mexico has largely demonstrated macroeconomic stability, with inflation rates and exchange rates remaining relatively predictable, especially when compared to other emerging markets. Though challenges such as fluctuating oil prices, political instability, and occasional security concerns have affected the economy, Mexico's fundamentals remain strong. The country continues to maintain a relatively low inflation rate and a stable exchange rate, which benefits manufacturers by reducing the unpredictability of production costs and foreign currency fluctuations.

5. Industry-Specific Focus Areas

Several industries have flourished in Mexico due to the country's manufacturing capabilities, strategic location, and advantageous trade agreements. The political landscape, particularly the shift in U.S. leadership in 2025, will continue to influence these sectors. Some key industries that are particularly relevant to U.S.-targeted manufacturing include:

• Automotive Industry

* Mexico has solidified its position as a global hub for automotive manufacturing, with prominent companies like General Motors, Ford, and Volkswagen establishing production facilities across the country. The proximity to the U.S. market, combined with a skilled labor force and cost advantages, makes Mexico an ideal location for car production. The 2020 USMCA included provisions designed to incentivize the use of North American parts in vehicles, thus fortifying Mexico's role in the automotive supply chain.

* During the Trump era, his administration’s focus on bringing manufacturing back to the U.S. through protectionist tariffs created some uncertainty for manufacturers in Mexico. However, the renegotiation of NAFTA into the USMCA provided clarity, especially with the new regulations aimed at increasing the U.S. content in Mexican-made cars. The result was a shift towards more North American-based supply chains, with the automotive industry benefiting from these stipulations, especially as it positioned Mexico as a competitive base for auto production due to its relatively low production costs and access to key markets.

• Electronics and Appliances

* Mexico has emerged as a significant player in the electronics and home appliance industries, with global giants like Samsung, LG, and Whirlpool operating major manufacturing facilities in the country. The nation’s low labor costs, coupled with its advantageous access to the U.S. market, make it a highly attractive location for producing consumer electronics and appliances. Moreover, Mexico’s growing technological infrastructure is supporting the development of high-tech products, including semiconductors, consumer electronics, and other advanced technologies.

* During the Trump administration, the electronics sector experienced shifts due to the escalating trade tensions between the U.S. and China. Trump’s tariffs on Chinese imports led many U.S. manufacturers to shift their supply chains, with Mexico emerging as a strong alternative due to its proximity and favorable trade terms under the USMCA. These factors solidified Mexico’s role in serving the U.S. market with electronics and appliances, taking advantage of cost savings in production and duty-free access to the U.S. market for many of these products.

• Aerospace

* Mexico’s aerospace industry has experienced rapid growth in recent years, with companies like Bombardier, Airbus, and Honeywell setting up manufacturing plants in the country. Mexico’s proximity to the U.S. aerospace market, coupled with its skilled workforce, has made it an attractive destination for companies involved in producing aircraft components, parts, and systems. The growing demand for aircraft and parts, along with the rising costs of manufacturing in the U.S., makes Mexico an increasingly viable alternative for aerospace production.

* Trump’s presidency had a notable impact on the aerospace industry due to his administration’s emphasis on boosting domestic manufacturing through tariffs and trade policies. These measures initially caused some hesitation among aerospace manufacturers, but the USMCA’s provisions, which continue to encourage North American supply chains, helped solidify Mexico’s role in the aerospace sector. Additionally, the stability of Mexico's labor market and its government’s proactive stance on maintaining industry-specific infrastructure helped mitigate some of the negative effects of the Trump-era trade policies.

6. Conclusion

Mexico remains an attractive and competitive location for manufacturers targeting the U.S. market, thanks to its proximity, cost-effective labor, and favorable trade agreements like the USMCA, which provides tarifffree access to the U.S. market. As companies seek to diversify their supply chains and reduce reliance on China, Mexico’s role as a manufacturing hub continues to grow. The country is also advancing in automation and advanced manufacturing techniques, further enhancing its appeal to global manufacturers.

Despite challenges such as security concerns, political risks, and supply chain vulnerabilities, Mexico’s advantages, including a skilled workforce and lower production costs, outweigh the drawbacks for many businesses. With growth in key sectors like automotive, electronics, aerospace, and medical devices, Mexico is well-positioned to remain a manufacturing powerhouse in the years to come. Manufacturers targeting the U.S. market would be wise to consider Mexico as a strategic base for their operations.

Bumpy Roads Ahead: How U.S.-Canada Trade Conflicts Threaten Auto Manufacturing

Data note: The data for this article is derived from the US Census trade statistics. US Census trade statistics analyze imports and exports on all modes of transportation. That value is calculated in USD by general CIF for imports and FOB for exports. Automobiles in this article are defined as any product under HS Code 8702 (motor vehicles for the transport of ten or more persons), HS 8703 (motor cars and other motor vehicles designed to transport people), and HS 8704 (motor vehicles for the transport of goods). The volume in terms of mass is recorded in Gross Weight (KG).

The U.S. and Canada have one of the world’s most integrated trade relationships, particularly in the automotive industry. Cross border trade was strengthened with the introduction of the United States-Mexico-Canada Agreement (USMCA, formerly known as NAFTA), and aims to create and maintain domestic production in North America. Most of the Canadian auto manufacturing primarily takes place in the province of Ontario, and U.S. auto manufacturing is primarily located in the midwestern state of Michigan. Canada is the largest market for U.S. made vehicles and has continuously represented 40% of the entire market over the last few years (Refer to Table 1). Popular brands such as Jeep, Dodge, Ford, Chevrolet, and Tesla are most often exported from the U.S. to Canada. Meanwhile, the U.S. heavily depends on Canadian made vehicles (Table 2) as some models of popular brands are only built in Canada to maintain the existing supply chains. The first few months of 2025 have turned out to be extremely challenging with the newly defined

and the ongoing disruptions in the supply chain, leaving the auto industry with a number of trade risks.

Table 1. USA's Automotive Export Destinations

2. Canada's Automotive Export Destinations

The U.S. trade disputes took the world by storm when they began being the focus for the 2nd Trump administration. In February 2025, President Trump announced a 25% tariff on all imports from Canada. In response, Canada imposed a retaliatory 25% tariff on U.S. goods in addition to a 25% surcharge on electricity exports to which prompted President Trump to threaten a higher steel and aluminum tariff. In 2024 the U.S. imports from Canada on motor vehicles was worth USD 36 billion. Prior to 2024, the U.S. was consistently ranked as Canada’s primary trading partner on motor vehicles, followed by China and Mexico. In 2024, the U.S. imported 85% of motor cars (8703), followed by 14.6% of motor vehicles for the transport of goods (8704), and less than 1% motor vehicles for the transport of ten people (8702) from Canada. Most of that trade is entering the U.S. through Detroit, Michigan and Buffalo, New York; however, Michigan and Texas are the top two destination states. Austin, Texas is the home for one of Tesla’s mega automobile factories where several of the newer Tesla models are being produced.

Considering how much of the auto industry currently relies on Canadian-made motor vehicles and parts, the newly imposed 25% tariffs will significantly increase prices for American consumers and potentially cause supply chain disruptions, slowing down manufacturing across North America. Increased tariffs could trigger an economic slowdown in both the U.S. and Canada, leading to a trade war that weakens GDP, reduces business investment, and impacts jobs in both countries. U.S. consumer costs could surge, while Canada may face a decline in foreign investment in its auto manufacturing sector, pushing companies to reconsider their operations and future expansion plans.

Moreover, the higher costs for automakers—due to the fact that many auto parts cross the U.S.-Canada border multiple times during production—will further increase the final cost of North American-built vehicles, including those made in the U.S. Car manufacturers could respond by shifting production elsewhere to overseas markets, where production is more cost-effective. This would jeopardize thousands of jobs across North America, particularly in automotive hubs like Michigan, Ontario, and other manufacturingheavy regions. If tensions continue to escalate without resolution, the long-term consequences could be severe, potentially reshaping North America’s auto industry, eroding its global competitiveness, and forcing consumers to bear the financial burden of trade conflicts through higher vehicle prices and reduced availability of new models.

Table 3. USA's Automotive Import by Vehicle Type

8703 - Motor Cars and Other Motor Vehicles Designed to Transport People (Other Than Public-Transport Type), Including Station Wagons and Racing

8704 -

Table

Table 4. USA's Automotive Parts Export to Canada by Type

8708 - Parts and Accessories for Tractors, Public-Transport Passenger Vehicles, Motor Cars, Goods Transport Motor Vehicles and Special Purpose Motor Vehicles

8544 - Insulated Wire, Cable and Other Insulated Electrical Conductors; Optical Fiber Cables, Of Individually Sheathed Fibers, With Conductors Etc. or Not

8511 - Electrical Ignition or Starting Equipment Used for Spark-Ignition or Compression-Ignition Internal Combustion Engines, Generators Etc. Therefore, Parts

Table 5. USA's Automotive Parts Export Destinations

In addition to motor vehicles, the U.S. exports car parts, primarily parts and accessories for tractors (HS 8708), insulated wire and cables (HS 8544), and electrical ignitions (HS 8511) to Canada (Table 4). The auto parts trade between the U.S. and Canada is highly integrated, with manufacturers relying on cross-border supply chains for engines, transmissions, braking systems, and electronic components. From 2022 to 2024, Mexico remained the U.S.’s primary trading partner for car parts, followed closely by Canada (Table 5). In 2024, U.S. exports of car parts to Canada represented a USD 17 billion industry, reinforcing Canada’s role as a key market for Americanmade auto components. However, the recent tariff dispute between the U.S. and Canada threatens to disrupt this trade, increasing costs for manufacturers, delaying production, and reducing competitiveness in the global auto market. The 25% tariffs imposed on Canadian imports could lead to retaliatory measures, affecting not only direct exports but also North America's overall supply chain efficiency. If tensions escalate, automakers may be forced to adjust sourcing strategies, potentially shifting production to other regions or passing higher costs onto consumers.

The recent escalation of trade tensions between the United States and Canada, marked by the imposition of new tariffs, poses significant threats to the deeply integrated auto parts industry of both nations. The U.S. administration's decision to enforce a 25% tariff on Canadian imports, including critical auto components, is expected to disrupt the seamless flow of parts across the border. This disruption will likely lead to increased production costs for manufacturers, which may be passed on to consumers in the form of higher vehicle prices. Moreover, the uncertainty stemming from these trade policies could deter investment and strain the collaborative manufacturing processes that have been established over decades. Industry leaders have expressed concerns that such measures could harm the competitiveness of North America's

stage.

Copyright owned by Fastener World / Article by Sabrina Rodriguez

Over the past 6 months, the global automotive supply chain has been in a state of chaos, with the EU imposing a high countervailing duty of up to 45.3% in October 2024 on Chinese EVs sold to Europe. However, at a time when Trump's tariffs are slashing at the two major sources of automotive exports, the market has also been reporting that the EU and the Chinese government are negotiating and the EU is considering replacing the duties by setting a minimum price for EVs from China. On the other hand, many carmakers have either held off on exporting their cars to the U.S. or suspended customs clearance procedures for cars that were originally planned to be shipped to the U.S. or have already arrived at U.S. ports in order to cope with the huge losses that may be caused by Trump's “ever-changing” tariff policies. The negative effects of the high cost of manufacturing in the U.S. have also begun to emerge, such as layoffs at large European and U.S. car makers, and the dilemma faced by many car makers relying on globalized component supply chains due to the difficulty of accessing non-Chinese-made parts that can avoid the high tariffs in the short term. These market uncertainties will not only affect the expansion plans of global automakers, but also the willingness of consumers to purchase and replace their vehicles in the short term, which will add more uncertainties to the global automobile sales and production situation in the future. This article will analyze the production and sales figures of major car manufacturing countries in 2024, and compare them with the figures in 2022 and 2023, so as to help readers understand the current market situation and development prospects of the automotive industry.

Production

Table 1 shows the amount of cars produced in major countries on each continent over the past 3 years. Over 92.5 million cars were produced globally in 2024, a small decrease of only 1% from 2023 and still more than the 2022 production.

In Europe, the total production amounted to more than 17 million units, down 5% from 2023. The top 5 producing countries were Germany, Spain, Czech Rep., France, and Slovakia. Germany accounted for about 23.6% of the total, producing more than 4 million units. Among the top 5 producers, only the Czech Rep. showed a positive YoY growth of 4%, while the rest 4 had negative growth. Among the 18 major European car manufacturing countries, the Netherlands experienced the largest YoY contraction of 94%.

In the former CIS countries, Belarus and Ukraine are excluded from the comparison as they have not published any vehicle production data for the past 3 years. In 2024 Russia led the way with more than 980,000 units, a 35% increase over 2023. Uzbekistan was in the 2nd place with nearly 430,000 units, a small increase of 1% over 2023. Kazakh production remained at around 140,000-150,000 units, down 2% year-on-year. Azerbaijan, with an annual output of less than 10,000 units, was up 43% year-on-year.

The annual automobile production of Turkey, which spans Europe and Asia, is roughly the size of all production in the former CIS countries. Turkish production once approached 1.5 million units in 2023 but dropped by 7% to just over 1.36 million in 2024.

The Americas is the world's 2nd largest car production region, with its total production reaching nearly 19.2 million units in 2024, almost unchanged from the 2023 figure. 55% of the production was in the U.S., which produced more than 10 million units in 2024, but shrank slightly by 1% year-over-year. Mexico ranked the 2nd with about 4.2 million units, up 5% year-on-year.

Statistics of Global Car Production & Sales in 2024

Slightly stagnant production, but more significant sales growth

Canada's decline was significant, shrinking 14% to 1.34 million units, less than Brazil's 2.54 million units. Brazil, the leading producer of automobiles in South America, was the best performer in the Americas with a 10% YoY increase. Argentina and Colombia contracted by 17% and 32% from 2023 respectively.

About 60% of the world's car production is in Asia (incl. the Oceania). Roughly 54.9 million units were produced in Asia (incl. the Oceania) in 2024, not much change from 2023. The top 5 producing countries were China, Japan, India, S. Korea, and Thailand. China's production volume was about 31.28 million units, up 4% year-on-year, while India's volume also grew by 3% to more than 6 million units. Japan, S. Korea, and Thailand shrank by 9%, 3% and 20% respectively compared to 2023. Indonesia, ranked the 6th, also saw a 14% decrease in production compared to 2023.

Table 1. Car Production by Country in 2022-2024

The major car producers in Africa are South Africa, Morocco, Algeria, and Egypt, but Egypt has not announced any production data in the past 3 years, so it is not included in this analysis. Although South Africa has long been the most important car producer in Africa, it produced nearly 600,000 units in 2024, a decrease of 5% from 2023. Morocco has been on the rise in the past 3 years, with a 4% increase to nearly 560,000 units in 2024, and will probably have a golden crossover with South Africa in 2025. Algeria, although producing fewer units, showed impressive growth in 2024 compared to 2022 or 2023 figures.

Table 1. Car Production by Country in 2022-2024

Estimate value is highlighted in orange CARS: Audi, BMW, JLR, Mercedes not reported COMMERCIAL VEHICLES: SINCE 2015 Q1: Scania, Daimler Trucks, Volvo Buses not reported N/A : Non Available

Source: OICA

Sales

Table 2 shows the car sales in major countries on all continents over the past 3 years. In contrast to the trend of “boom-and-bust” in the global car production over the past 3 years, car sales have increased for 3 consecutive years, growing by 2.7% in 2024 to more than 95.3 million units.

In Europe, the top 5 countries with the highest sales in order in 2024 were Germany, the UK, France, Italy, and Spain. Germany led the list with nearly 32 million units sold, but with a slight YoY decrease of 0.4%. Among the top 5 countries, Spain had the most significant YoY growth of 8.1%, followed by the UK with a 2.6% YoY growth. Poland, the Netherlands, Hungary, Croatia, and Bulgaria all recorded double-digit growths. Only Finland experienced a double-digit contraction.

In 2024, Russia's sales exceeded 1.8 million units, slightly higher than Turkey's 1.28 million units. However, compared to 2023, Russia's sales greatly increased by 39.2%, while Turkey's remained flat. In addition, although Ukraine is suffering from the war, its car sales in the past 3 years still showed stable growth, and in 2024 its sales reached 83,000 units, a YoY growth of 13.4%.

The Americas (incl. the U.S./Canada/Mexico + South America) accounted for more than 24.15 million units of sales in 2024, but N. America alone accounted for more than 80% of the total (about 19.8 million units). Sales in the U.S. in 2024 reached 16.34 million units, up 2.1% year-over-year. Brazil (reaching about 2.63 million units, the 2nd highest sales by volume), with a 14.1% YoY increase, also outperformed Canada, Mexico, and the South American countries in the region. Only Chile, Peru, and Ecuador showed signs of contraction.

In the Asia/Middle East/Oceania region, its total sales in 2024 exceeded 51.4 million units, a small YoY increase of 1.5%. The top 5 countries with the highest sales in order were China, India, Japan, S. Korea, and Australia. China's sales amounted to 31.43 million units, up 4.5% year-on-year. Although India's sales were only about 17% of China's, there was still also a 2.9% YoY increase. Pakistan had the highest YoY increase of 52.1% (other double-digit increases were recorded in the Philippines, UAE, and Uzbekistan as well), while the worst was Thailand at -26.2%.

In Africa, the sales in 2024 totaled about 1.0 million units, a small YoY contraction of 0.3%. South Africa led the pack with 515,000 units, followed by Morocco and Egypt (which showed the best YoY growth of 9.2% and 12.6%, respectively).

Table 2. Car Sales by Country in 2022-2024

Table 2. Car Sales by Country in 2022-2024

Conclusions

Summarizing the above changes in production and sales data, it can be seen that the growth of the global car production in 2024 was slightly stagnant, especially in Europe. Sales in all regions had a certain degree of growth, especially in Russia, Latin America and the EU, showing that the market's purchasing power continued to show a steady upward trend. However, it should be noted that after U.S. President Trump's announcement of a 25% tariff increase on global cars on April 2, 2025, the global car production, shipment and sales have begun to be chaotic, and the price of new vehicle sales may be pushed up significantly, and low-priced models in the market may no longer be available. Although there is unofficial news that the 25% tariff on auto parts may be exempted, it is estimated that the market sentiment will remain conservative for the time being, as many uncertainties have yet to be fully eliminated.

Copyright owned by Fastener World / Article by Gang Hao Chang, Vice Editor-in-Chief

American News

Tariffs Hiking Wire Rod Prices

U.S. steel buyers face 10-15% price increases due to 25% steel and aluminum tariffs on metals from Canada and Mexico. In February, U.S. President Donald Trump restored Section 232 tariffs on steel and aluminum, resulting in a 25% tax on these imported metals.

Imports account for 23% of finished steel consumption in the U.S, according to the American Iron and Steel Institute. Imports from Canada and Mexico accounted for 8.6% of U.S. consumption in 2024.

Canada is the largest exporter of steel to the U.S, shipping almost six million tons in 2024, representing 23% of total U.S. steel imports. More than 450,000 tons of wire rod were imported from Canada in 2024, nearly half of total U.S. wire rod imports.

So far in 2025, U.S. prices for hot-rolled coils, plates and wire rods have experienced the biggest movement. Nucor has raised prices for sheets by US$260 per short ton, hot-rolled coils by US$110 and wire rod by US$100 since mid-January.

232 Tariff is Unlikely to Boost Production

The Trump administration’s 232 tariffs on steel and aluminum imports to the U.S. have triggered retaliatory measures from trading partners, Seeking Alpha reports. Domestic metal producers welcomed the move, as a 25% tariff imposed on steel and aluminum products imported from all countries ended exemptions President Donald Trump had granted to countries like Canada and Mexico under his Section 232 proclamation in 2018.

While tariffs were often cited by the Trump administration as a tool to protect and boost domestic manufacturing, analysts have different views. RBC Capital Markets said that the 2018 steel and aluminum tariffs only increased U.S. steel and aluminum production by 7% and 4%, respectively.

While the U.S. steel and aluminum imports by weight fell by 15% and 13% since 2018, imports of those metals remain at 13% and 47% of domestic consumption, respectively, RBC analyst Shaz Merwat noted. However, total U.S. consumption of both metals has also dropped about 10% since 2018, “explaining why import dependence hasn’t dropped as much as the raw numbers suggest.”

“The U.S. steel industry is impeded by a far bigger challenge as China floods global steel markets with excess production capacity, ultimately hindering U.S.

producers’ ability to boost domestic output,” Merwat stated.

The Economist Intelligence in London offered similar views. “In the longer term, we do not expect higher effective US tariff rates on steel on their own to boost domestic production or encourage a renaissance in US manufacturing,” the EIU wrote, noting that even as seven years have elapsed since the first steel tariffs went into effect, total steel production remained about 8% lower last year.

The EIU noted concerns over manufacturers’ ability to expand local production capacity, citing a demand-supply mismatch between the type of steel products required from imports and what domestic production lines can provide. “The profitability of highly capital-intensive investments in steelmaking capacity is determined by much more than tariff rates, which can be short-lived depending on the political environment,” EIU wrote.

FINdex Grows Double-Digits in 2024

The FIN Fastener Stock Index rose 17% in 2024, besting a 9% gain by an index of related industrial stocks.

Fastener stocks could not keep pace with Silicon Valley. The S&P 500 and Nasdaq composite index rose to record highs, as investors poured money into artificial intelligence, and investors welcomed the Federal Reserve’s lower interest rates.

But two FINdex company more than doubled their share value in 2024. Carpenter Technology stock jumped 139% as investors liked its stainless steels and corrosion-resistant alloys for additive manufacturing.

Meanwhile, Howmet Aerospace stock value soared 102%. During Q3, Howmet’s Fastening Systems revenue rose 13% to US$392 million in the third quarter of 2024 due to growth

in the commercial aerospace market, including wide body aircraft recovery. Segment EBITDA improved 34% to US$102 million, while margin increased 420 basis points to 26%.

Other FINdex companies achieving share gains during 2024 included Dorman Products (up 55%); Fastenal (up 11%); Grainger (up 27.3%).

FINdex share losses were more widespread and modest.

Nucor recorded the largest share decline, with the steel giant’s stock value dropping 33% during the year. Other fastener companies with a declining stock price included Chicago Rivet (down 6.7%); MSC Industrial (down 26.2%); Park Ohio (down 2.5%); Simpson Mfg. (down 16.2%); Stanley Black & Decker (down 18%); Tree Island Steel (down 18.7%); and TriMas (down 2.9%).

Industrial Fasteners Institute Leadership Updates

The Industrial Fasteners Institute (IFI), Independence, OH, USA, announced leadership updates from its IFI 2025 Spring Meeting in March at Margaritaville Beach Resort, Hollywood, FL, USA. Preston Boyd, the IFI Industrial Products Manager, reports, “Congratulations to Sebastian Janas, President of Sems & Specials, on being elected as the incoming Chairman of IFI’s Division 1 –Industrial Products. A well-deserved recognition of his leadership and expertise in the industry. We also extend our congratulations to Jose M. Janeiro, Managing Director of JM Tor Par, who will serve as the new Vice-Chair for Division 1. Please join the IFI in wishing both Sebastian and Jose great success in their new roles as they help drive innovation and progress in the industrial fastener industry.”

IFI represents North American fastener manufacturers to their suppliers, customers, the government and the public at large to advance the competitiveness, products and innovative technology of IFI member companies in a global marketplace. IFI resources include the Director of Engineering Technology, Director of Education & Training, Aerospace Division Manager, Automotive Division Manager, and Industrial Products Division Manager, strategically located throughout the USA and Canada. IFI also retains a representative in Washington, DC, who monitors and advocates on impactful membership issues. IFI stages several in-person and online events each year.

Fire Guts SPS Technologies Fastener Factory

Loss of 600,000 sq ft facility hurts Boeing 737 MAX production. A massive fire engulfed SPS Technologies’ fastener manufacturing facility in suburban Philadelphia on February 17. As roughly 100 firefighters battled the blaze, officials closed schools and ordered residents within a mile radius to shelter-in-place.

SPS Technologies owner PCC Fasteners said the fire “significantly damaged the facility,” and likely started with an electrical transformer inside the 560,000 sq ft plant. All 60 employees on site safely evacuated, and there were no immediate reports of injuries. “We are still working to assess the damage,” PCC Fasteners said. “The plant will be offline for the foreseeable future.” The factory’s sprinkler system was reportedly out of service because of a maintenance issue, officials stated.

The aerospace fastener manufacturer “employs high-temperature forging, fine metal powder milling, and chemical electroplating to craft superalloy-based products,” R&D World reports. “These hazardous-material processes had faced prior EPA citations for waste

Janas left and Janeiro right

management lapses.” In 2023, SPS Technologies reportedly paid a US$109,000 fine to the EPA for failing to properly dispose of and store hazardous waste, as well as failure to have a clear contingency plan for evacuation.

SPS representatives told local officials that most of the chemicals of concern were stored in a separate building that was not destroyed in the explosion or fire, stated Abington Township Police Chief Patrick Molloy. “The tactical response from our firefighters prevented what could have been a mass casualty incident,” Molloy said.

Founded in 1903 as Standard Pressed Steel Co., SPS operates under Precision Castparts Corp., a Berkshire Hathaway subsidiary since 2016.

SPS Fire Could Slow 737 MAX Production

The fire at SPS Technologies’ fastener manufacturing facility could slow Boeing’s 737 MAX production.

The blaze caused enough damage that “top-tier aerospace companies are taking notice,” Aviation Week reports.

Boeing CEO Kelly Ortberg stated on February 20 that, while the overall 737 MAX supply chain is in good shape as the U.S. jet manufacturer aims to grow output of the model to 38 a month by mid-2025, the troubled aerospace giant is working to assess the impact of the fire.

Reinhold Würth Steps Down

The event is “another serious blow to the aerospace supply chain that has absorbed a seemingly never-ending series of blows over the past five years,” according to aerospace consulting firm Riveron. “Fasteners made at the Jenkintown plant, such as rivets and hilocks… have been a historical pinch point for the industry.” Riveron said the SPS facility “represents a material proportion of domestic aerospace grade fastener capacity, including a number of bespoke fasteners for which the facility has been the sole source. The supply chain and distribution channels likely have approximately 90 days worth of supply on hand, but, after that, we expect that aircraft production will be affected.”

Three months after celebrating his 75th work anniversary, Würth Group patriarch Reinhold Würth stepped down. On January 1, the 89-year-old fastener industry titan handed over his position as supervisory board chair to his grandson Benjamin Würth, 43. Benjamin Würth has been working for the company for 25 years and has gained extensive professional experience both at a national and international level. Reinhold Würth will remain Honorary Chairman.

After 19 years, Bettina Würth, 63, daughter of Reinhold Würth, handed over her position as chair of the advisory board to her nephew Sebastian Würth, 39. Sebastian Würth has been working for the company since 2012 and holds an MA in family entrepreneurship. Bettina Würth remains a member of the supervisory board, and becomes honorary chair.

Executive VP for Arts and Culture Sylvia Weber, 63, will transfer most of her tasks to 34-year-old Maria Würth, daughter of Bettina Würth. Maria Würth holds an MA in Art History and has prepared for this position since 2018.

“The succession of these three has been prepared for a long time,” the Group stated. “Both the family and the company attach great importance of continuity… (to) ensure that the corporate culture we live by will be continued without any disruptions.”

In 1949, 14-year-old Reinhold Würth began working for his father’s fledgling wholesale screw business as its second employee and first apprentice. Five years later, he took over after his father died. Reinhold Würth, who retired from daily operations in 1994, is ranked among the world’s richest people, with a net worth of US$37.2 billion.

Fastenal Fastener Sales Fall

Fastenal Co. fastener sales declined 3% to US$2.31 billion in 2024. During the final quarter, fastener sales dropped 1.4% to US$545.5 million. OEM fastener sales increased 0.4% to US$346.7 million, while MRO fastener sales fell 4.5% toUS$198.8 million during the quarter. Fastener sales decreased 2.2% to US$160.1 million in December.

“The rate of contraction of our fastener line eased in the fourth quarter of 2024, but continued to lag our non-fastener product lines,” the company stated. Higher fastener container costs in the final quarter caused product margin pressure.

During 2024, consolidated sales gained 2.7% to US$7.55 billion during 2024, with operating income dropping 1.2% to US$1.51 billion and net income slipping 0.4% to US$1.15 billion. Capital expenditures rose 33% to US$214.1 million, while total personnel grew 1.1% to 20,958 during the year. Final quarter sales gained 3.7% to US$1.82 billion, with operating income down 2.6% to US$344.8 million and net income down 1.6% to US$262.1 million.

Brighton-Best Promotes Executives While Celebrating 100 Years

Brighton-Best International announced several promotions effective immediately. George Hunt has been promoted to VP of sales for the Industrial Division. He will oversee BBI’s base of fastener distributors. Scott Gibson has been promoted to VP of sales for the Construction Division. He will focus on BBI’s Proferred and US Anchor brands, catering to drywall houses and installers. Steve Andrasik has been promoted to executive VP of sales.

“These promotions reflect BBI’s commitment to growth and specialization within our key divisions. As we celebrate 100 years of success, BBI recognizes the importance of having dedicated leadership to drive our future endeavors,” stated Rosa Hearn, director of public relations.

Chicago Rivet & Machine Celebrates 105 Years

Chicago Rivet & Machine Co., Naperville, IL, USA, an ISO/IATF 16949 manufacturer of custom cold-headed parts, announced that it is celebrating 105 years of innovative fastening solutions within numerous industrial sectors. The company says, “Contact us to see how our knowledge and expertise can streamline your fastening requirements.”

The promotions come as BBI celebrates its 100th anniversary in 2025. Founded in 1925, BBI is the largest master distributor of fasteners in the U.S., supplying 7,000 distributors through 32 locations in seven countries. Owned by Ta-Chen International, BBI is headquartered in Taiwan, with U.S. operations based in Long Beach, CA.

Swiss Rail Fastener Producer Relocates U.S. Operations

Swiss railroad fastener manufacturer has chosen Winfield in south central Kansas as the site of its new U.S. headquarters and manufacturing facility, KSNW reports. Schwihag AG has purchased a 30,000 sq ft property, and intended to open in March.

“We are thrilled to announce the opening of our new factory in Winfield, Kansas,” stated Marc Raymond, Americas for Schwihag general manager. “With our new facility, we look forward to strengthening our community ties, producing high-quality products, and driving sustainable growth.”

Schwihag says it will hire 15 people in the short term and more as the company grows. Jobs include line workers, machinists and supervisors. Currently, Schwihag bases its U.S. operations in Grandview, MO. Founded in 1971, Schwihag develops and produces railroad track and switch technology, including fasteners. The group is headquartered in Tägerwilen, Switzerland, with manufacturing sites in Leipzig (Germany), and Doncaster (UK), as well as the U.S.

Endries International Adds Texas Center

Endries International Inc. will open a new distribution center in Fort Worth, TX, doubling capacity to 65,000 sq ft. Located near intermodal yards, the new warehouse will provide faster delivery. Additionally, the establishment of a Foreign Trade Zone (FTZ) within the facility will enable Endries to more easily navigate import tariffs and duties. Proximity to West Coast ports and Latin America will benefit Endries’ southern customers and serve as an efficient staging hub to support warehouse operations in Mexico.

“Our investment in this new distribution center is driven by our growing business in the region,” stated president Michael Knight.

Würth Industry Expands with New Distribution Center

Würth Industry North America, a leading nationwide supplier of production material, safety, MRO and metalworking products, announces a US$42.5 million investment to establish a major distribution center in Columbus, OH, USA, eventually creating up to 160 new full-time jobs. The company is acquiring a 472,000 ft2 facility with room for an additional 500,000 ft2 of future expansion to accommodate growth.

The project supports Würth Industry’s commitment to faster service, while enhancing product availability and offering improved operational efficiency for its global customers. The Columbus facility is a major expansion of Würth Industry’s capabilities to deliver leading-edge solutions to a growing customer base and will stock the full product assortment, including industrial supplies, safety equipment and fastening materials.

“Columbus offers a strategic advantage for Würth Industry’s expansion with its central location, robust infrastructure and access to a skilled workforce,” said Bastian Rottenberg, CEO of Würth MRO, Safety & Metalworking, a division of Würth Industry North America. “This facility will allow us to better serve our customers across the USA through enhanced distribution capabilities. I'd like to thank the City of Columbus and its partners for their collaboration throughout the process and we look forward to growing in the region for years to come."

SWD Acquires Metals Tech Corp.

SWD Inc. acquired the assets of commercial heat treater Metals Technology Corporation. The deal retains Metals Technology’s employees in Carol Stream, IL. The acquisition enhances SWD’s service offerings for the metal finishing and fastener sorting sectors. Integration is already underway, with SWD planning “significant” investments to streamline operations.

“This acquisition aligns with our vision to expand our capabilities and offer our customers an integrated solution for their metal processing needs,” stated SWD president Rick Delawder. “The combined expertise and resources of both companies will enable us to deliver even greater value to the essential manufacturing community we serve.”

SWD specializes in black oxide, passivation, and phosphating, as well as superior corrosion resistant Magni, Doerken and Yuken Coating Systems. Founded in 1963 by Jerome V. Bell, Sr., Metals Technology operates a 70,000 sq ft facility in Carol Stream, IL. Newly formed entity Better4, LLC will operate Metals Technology.

Founded in 1980, SWD provides finishing, coating and sorting for the fastener industry. The company employs 150 workers to operate its 200,000 sq ft facility in Addison, IL.

TriMas Acquires GMT Aerospace

Buckeye Fasteners, Ohio Nut & Bolt & Modern Fasteners Host Open House for NCFA

Buckeye Fasteners, along with Ohio Nut & Bolt and Modern Fasteners, all based in Cleveland, OH, USA, recently had the pleasure of hosting the North Coast Fasteners Association (NCFA) for an open house and factory tours, “We enjoyed showcasing our processes, from cold forming to punch presses, and giving an inside look at how our quality fasteners are made. It was a great opportunity to connect, share knowledge and highlight the craftsmanship behind our products. We extend a big thank you to the NCFA for joining us; we appreciate your time and enthusiasm.”

TriMas acquired the aerospace business of GMT Gummi- Metall-Technik GmbH. Founded in 2006, Germany-based GMT Aerospace develops and manufactures tie-rods and rubber-metal anti-vibration systems for commercial and military aerospace applications. GMT Aerospace is now part of the TriMas Aerospace group. Customers include OEMs, Tier 1 suppliers, MRO providers. In fiscal year 2024, GMT Aerospace achieved €22 million (US$23.1 million) in revenue.

“We are pleased to announce the acquisition of GMT Aerospace,” said TriMas Aerospace president Vitaliy Rusakov. “GMT Aerospace brings a wide range of highly-engineered products, and advanced design and manufacturing capabilities that complement our existing portfolio, enhancing our offerings in the aerospace and defense sectors,” stated TriMas Aerospace President Vitaliy Rusakov. “We are also particularly excited about strengthening our relationships with key European aerospace and defense Tier 1 suppliers and original equipment manufacturers (OEMs) by establishing TriMas Aerospace’s manufacturing footprint in Europe.”

US Anchors Acquired by Equity Firm

TriMas Aerospace, TriMas’ second largest reportable segment, designs and manufactures highly-engineered fasteners, collars, blind bolts, rivets, ducting and connectors for air management systems, and other machined parts and components. TriMas Aerospace markets under brands Monogram Aerospace Fasteners, Allfast Fastening Systems, Mac Fasteners, RSA Engineered Products, Weldmac Manufacturing, Martinic Engineering and TFI Aerospace.

US Anchors (USA) was acquired by private investment firm Kinderhook Industries for an undisclosed sum. Founded in 1968, Norwalk, CT-based USA specializes in construction anchors, fasteners and other components through brands that include TOGGLER, Wej-It and Heckmann. USA also has a distribution division — Gotham Building Supplies. USA is one of the only American anchor manufacturers that produces most of its anchors and custom products domestically.

Jordan Eisenberg will become the CEO. Previously he was CEO of specialty fasteners manufacturer Mechanical Plastics Corp. Eisenberg holds dual bachelor of engineering degrees in computer science and mathematics from Vanderbilt University. Eisenberg will work with former co-owners Ted Garfield and David Garfield, who will maintain an ownership interest in the company. Ted Garfield will become a board member. “Since my father’s founding of the original business over 50 years ago, the company has continued to drive success through our dedication to our customers,” Eisenberg stated.

Founded in 2003, Kinderhook is an US$8.5 billion private investment firm. The US Anchors acquisition is the firm’s 31st light manufacturing/automotive investment.

Taiwanese Exhibitors

Date: September 15-17, 2025

Venue: Mandalay Bay, Halls E & F, Las Vegas of

950

1246

FASTENER WORLD INC.

www.fastener-world.com sales@fastener-world.com.tw

842

ABLY SCREW LTD.

www.ably-screw.com master@ably-screw.com 1041

AEH FASTEN INDUSTRIES CO., LTD.

www.aeh.com.tw sales@aeh.com.tw 847

A-STAINLESS INTERNATIONAL CO., LTD.

www.a-stainless.com.tw angielu@a-stainless.com.tw 841

BEAR FASTENING SOLUTIONS, INC.

www.bearfs.com.tw lionel@bearfs.com.tw 948

BI-MIRTH CORP.

www.bi-mirth.com sales@bimirth.com.tw 941

CHITE ENTERPRISES CO., LTD.

www.chite.com.tw chite@chite.com.tw 851

CHONG CHENG FASTENER CORP.

www.cfc.net.tw sales@cfc.net.tw 1037

DIN LING CORP.

www.din-ling.com cara@din-ling.com

DRAGON IRON FACTORY CO., LTD.

www.dragoniron.com.tw dragonco@hibox.hinet.net 1147

E CHAIN INDUSTRIAL CO., LTD

www.sqf.com.tw joan@sqf.com.tw 849

EVEREON INDUSTRIES, INC.

www.ydsevereon.com SALES3@evereon.com.tw 940

FALCON FASTENER CO., LTD.

www.falcon-senda.com.tw sales@falcon-senda.com.tw 1150

FANG SHENG SCREW CO., LTD.

www.yfs.com.tw erie@mail.yfs.com.tw 837

FENG YI TITANIUM FASTENERS www.fengyi-ti.com fengyi.ti@msa.hinet.net 747

FONG PREAN INDUSTRIAL CO., LTD.

www.fongprean.com marketing@ms.fongprean.com.tw 1038

FONG YIEN INDUSTRIAL CO., LTD.

www.fongyien.com weschuang@fongyien.com 1238

FONTEC SCREWS CO., LTD. www.fontec.com.tw ck-lin@fontec.com.tw

748

FOSS REACH MANUFACTURING CO., LTD www.foss-reach.com eric@foss-reach.com 1046

GOFAST CO., LTD. www.gofast.com.tw gwen.liu@gofast.com.tw 741

HOMN REEN ENTERPRISE CO., LTD. www.homnreen.com homnreen@mail.homnreen.com.tw 749

HONG YUAN PM CO., LTD. hy-pm.com.tw 161203@twhungtai.com.tw 743

HSIUNG JEN INDUSTRIAL CO., LTD. www.hsiungjen.com hj052377768@gmail.com 942

HU PAO INDUSTRIES CO., LTD. www.hupao.com.tw acc01@hupao.com.tw 846

J.C. GRAND CORPORATION www.jcgrand.com sales@jcgrand.com 947

JI LI DENG FASTENERS CO., LTD. www.jldfasteners.com.tw sales@jldfasteners.com.tw 1149

JUNG SHEN TECHNOLOGY CO., LTD. www.jungshen.com.tw nicole.jung.shen@gmail.com

839

K. TICHO INDUSTRIES CO., LTD.

www.screw-nails.com.tw ticho.master@msa.hinet.net 949

KATSUHANA FASTENERS CORP.

www.katsuhana.com.tw khn13@katsuhana.com.tw

Booth No. Coming Up

KINGWIN PRECISION CO., LTD.

www.kingwin.tw service@kingwin.tw 843

KUNTECH INTERNATIONAL CORP.

www.kuntech.com.tw kenneth@kuntech.com.tw 1137

KWANTEX RESEARCH INC.

www.kwantex.com.tw adms@kwantex.com 1146

L & W FASTENERS COMPANY

www.lwfasteners.com.tw king-lin@lwfasteners.com.tw 946

LINK UPON ADVANCED MATERIAL CORPORATION

www.linkupon.com maggie.lee@linkupon.com 1240

LINKWELL INDUSTRY CO., LTD.

www.linkwell.com.tw flora_wu@linkwell.com.tw  1047

MAO CHUAN INDUSTRIAL CO., LTD.

www.maochuan.com.tw joanneline@maochuan.com.tw 838

METAL FASTENERS CO., LTD.

www.fasteners.com.tw sales@fasteners.com.tw 937

MOLS CORPORATION

www.molscorp.com.tw sabrina@molscorp.com.tw

Booth No. Coming Up

PINGOOD ENTERPRISE CO., LTD.

www.pingood.com.tw sales@pingood.com.tw 1040

RAY FU ENTERPRISE CO., LTD.

www.ray-fu.com anne@ray-fu.com.tw 936

REXLEN CORP.

www.rexlen.com.tw isa@rexlen.com.tw 1048

RONG YIH JIANG

ENTERPRISE CO., LTD.

www.rongyih.com service@rongyih.com 737

SHEH FUNG SCREWS CO., LTD.

www.shehfung.com shehfung@shehfung.com 840

SHINN RUNG CO., LTD.

www.shinnrung.com sr@shinnrung.com 951

SINTEC CO., LTD. www.sintecmetal.com sammi@twifix.com  1141

SOON PORT

INTERNATIONAL CO., LTD. www.soonport.com info@soonport.com 1140

SPEC PRODUCTS CORP. www.spec.com.tw rachel.hung@spec.com.tw 1043

SPECIAL RIVETS CORP. www.srcrivet.com pchang@srcrivet.com

751

SUN THROUGH INDUSTRIAL CO., LTD.

www.sunthrough-industrial.com lynnlin.sunthrough@gmail.com 939

TAIWAN INDUSTRIAL FASTENERS INSTITUTE www.fasteners.org.tw tifi.tw@msa.hinet.net  848

TAIWAN METIZ ALLIANCE www.metiz.com.tw info@rgt.tw 1138

TAIWAN PRECISION FASTENER CO., LTD.

www.taiwan-precision-fastener.com sales@taiwan-precision-fastener.com 836

TAIWAN SHAN YIN INTERNATIONAL CO., LTD. www.shanyin.com.tw Campbell@biomate-device.com.tw 1051

TANG AN ENTERPRISE CO., LTD. www.fastener-world.com/en/supplier/tangan sales@tang-an.com.tw 739

WATTSON FASTENER GROUP INC.

www.fastener-world.com/en/supplier/wattson bell521101@yahoo.com.tw 1039

WEI I INDUSTRY CO., LTD. www.weii-nut.com.tw petrina@weii-nut.com.tw 1139

YICISCREW CO., LTD. www.yiciscrew.com.tw yeddaou@yiciscrew.com.tw 1151

YOW CHERN CO., LTD. www.yowchern.com.tw ycsales@yowchern.com.tw

Taiwan registration rep: International Fastener Exhibition Corp. +886-6-299-3788

foreign@fastener-world.com.tw

Fastener World News NEWS NEWS NEWS NEWS NEWS NEWS NEWS NEWS

Association News

Mark Shannon Named NFDA's 2025 Fastener Professional of the Year

The National Fastener Distributors Association (NFDA) has awarded Mark Shannon the 2025 Fastener Professional of the Year. Shannon, a second-generation leader, dedicated 47 years to Tower Fasteners, the company his father founded in 1967. Taking the helm in 1997, Shannon expanded Tower Fasteners, including opening its first European distribution site in Dublin, Ireland, in 2018. In 2022, Tower Fasteners was acquired by MSC Corp., where Shannon served as President during the transition. An active NFDA member since 2000 and President from 2008-2009, Shannon played a key role in expanding membership. He also contributed to industry boards and international supply chain initiatives.

CMCA Fastener Subdivision President KangSheng Xue Continues Term & Visits AoZhan Aviation

The member assembly held in Hangzhou (China) from March 21 to 22 saw Mr. Xue Kang-Sheng re-elected as president of the ninth council through voting, witnessed by key leadership representatives and industry professionals in attendance. During the same period, he led a delegation from CMCA Fastener Subdivision to visit Aozhan Aviation Fasteners, gaining insights into their production quality control and manufacturing technologies. Through this exchange, they charted new development targets for the high-quality upgrade of China's fastener industry.

Foshan Fastener Manufacturing Industry Association Anniversary Celebration and Members' Meeting

On March 27, association members gathered to witness this significant event advancing Foshan's fastener industry development. President Mr. He Jianwei reviewed the resilience of industry peers over the past year amid complex market conditions, highlighting breakthroughs in technological innovation and green transformation. Executive President Mr. Zhang Yong announced the association’s annual work plan, emphasizing efforts to promote collaborative development across the fastener supply chain and strengthen partnerships with upstream and downstream sectors such as steel, automotive, and machinery manufacturing.

Chief Quality Officer Training Conference Successfully Held in Yongnian District of China

On February 15, the Yongnian District Market Supervision Bureau organized the 2025 Chief Quality Officer Training Conference, attended by over 170 quality officers. The event focused on enhancing corporate quality management capabilities. Mr. Zheng Zhongwei, head of the bureau’s quality department, delivered an analysis of China’s Product Quality Law, using practical cases to clarify legal responsibilities. Deputy Director Mr. Gao Deju conducted specialized training on the roles and functions of chief quality officers, sharing advanced quality management methodologies.

Hong Kong Screw & Fastener Council (HKSFC) Kicks Off New Leadership with Grand Inauguration Ceremony

On March 28, 2025, HKSFC held its 11th Council Inauguration Ceremony and Spring Gala, marking the official commencement of the new council. Chairman Mr. Tsui Ping Fai urged members to actively integrate AI technologies into industry practices to drive innovation and emphasized the association’s commitment to uniting stakeholders in elevating Hong Kong’s fastener industry to new heights.

Market Watch: Trump Tariff 2.0

Facing U.S. 25% Tariff, Taiwanese Suppliers Say Market Sentiment Turns Conservative

Fasteners imported into the U.S. are currently subject to respective basic import duties depending on their respective tariff codes and the extra 25% tariff on steel & aluminum including their derivatives, which will create considerable cost pressures on suppliers and U.S. importers and consumers, causing problems of cost-sharing and transfer. A few Taiwanese export-oriented suppliers have expressed their views on the possible impact of the 25% tariff.

Anchor Fasteners G.M. Hector Chu said: “Taiwan still has an advantage when comparing the tariffs imposed by the U.S. on Taiwan and China. What is more worrisome is that the tariffs will reduce consumption in various industries, resulting in lower market demand and an economic downturn. Chinese manufacturers will inevitably shift their focus to the European and Asian markets, which will lead to tougher competition in these markets, adding to Taiwan's woes. At the end of the Covid pandemic, Taiwanese manufacturers had been in a recession for consecutive years, and they thought they had finally waited for a chance to recover, but then there comes an even more terrible black swan. It will take time to see if U.S. manufacturing can replace imports. The market was globalized in the past, but now it is going to be more localized. It is also difficult for export-oriented Taiwanese SMEs to set up factories in the U.S. The tariff is so high that it is difficult to share the full amount. In the end, most of the tariff will be passed on to customers and a small portion will be shared by manufacturers.

Chun Yu Domestic Sales Division Manager Denise Lee said: “After the confirmation of Trump's reciprocal tariffs on April 2, our domestic wire customers seem to have been affected, and a few of their customers have suspended or cancelled the orders, and only the parts with no inventory will continue to be arranged for shipment. Although the current duty rates are as we predicted (for example, the wire coil is subject to 25%, 731814.10 (small screws) is 6.2% plus 25%, and 731814.15 (bolts) is 8.6% plus 25%), importers do not want to bear so much tariffs and would like to ask exporters to share some of the costs. Some of our customers have also contacted us recently asking for pricing renegotiation.”

Chun Yu International Hardware Sales Division Manager Jas Huang said: “I think that the increase in tariffs by the US on various countries (especially China) will benefit Taiwanese manufacturers in the short term with the order transfer effect, but I’m still not optimistic about the long term economic outlook. Due to the constant changes in U.S. tariffs, the purchasing countries are now keeping a close eye on the market development and adopting a conservative policy, so the order volume cannot be increased."

Bi-Mirth Vice President Tom Shih said: “Since steel and aluminum products are covered by Section 232 of the Trade Expansion Act of 1962 and are exempted from reciprocal tariffs, fasteners entering the U.S. will only be subject to respective basic import duties, plus a 25% tariff, depending on the item. In the case of coach screw, that's the basic 12.5% tax rate plus the 25%

tax rate, which is 37.5% in total. Theoretically, it's true that taxes have increased, but in reality, almost every country is facing the same rate of tax increase, not just Taiwan. Currently, our shipments to U.S. customers are continuing as usual, and we have not been asked to suspend shipments or reduce orders. It should be noted that the actual tax rates for non-steel and aluminum products (such as assembly parts or rubber & plastic washers) may still depend on how the U.S. Customs will determine the rate at that time. Moreover, as the current tax measures change from one day to the next, we may not be able to see the extent of the impact on the industry until the end of April.”

Fang Sheng G. M. Jess Tsai said: “Previously, fasteners of some countries (such as Japan, S. Korea) exported to the U.S. will enjoy duty-free or lower tax rates under bilateral agreements, but if we look at the 25% tariff alone, because every country has been taxed, the advantage every country originally has is still there. The greater impact may be felt by local consumers in the U.S. It has been heard that U.S. importers will adopt a gradual price increase strategy, so only after the existing stock is emptied will consumers have to bear the 25% tariff directly on their subsequent purchases. Special attention should be paid to the ripple effect caused by the demand change among different industries. Although the impact on the fastener industry is relatively small due to the non-applicability of reciprocal tariffs, mid- to high-level industries such as machinery and other CNC machine tools are facing a big impact, and machinery requires the use of a lot of fasteners, so perhaps the real impact will slowly emerge later. Of course, the government's assistance in securing a lower tax rate and making the New Taiwan Dollar (NTD) more competitive will definitely minimize the impact. The actual impact of the tax measures should surface in H2 of the year. In addition, special attention should be paid to the concern about whether there are manufacturers who will try to circumvent the tax from the third country.”

TFTA Chairman Arthur Chiang said: “As for the tariff cost that some manufacturers may be forced to share at the request of their U.S. importers, TFTA's position is to discourage our company members from doing so, after all, the raw materials, utilities and other manufacturing costs of Taiwanese manufacturers are already much higher compared to other countries. Currently, if U.S. importers still have inventory, the extent of the impact may not be so obvious and the response to CPI may not be so fast, meaning the actual impact may be still a few months away. After the implementation of the 25% tariff, it is expected that the purchasing volume of U.S. customers may drop by 30% in the short term, but the demand will pick up after their inventory is emptied.

NFDA President Scott McDaniel said: “In the United States, tariffs have been used since the early days of our republic. Some countries have used tariffs to make their domestic production more cost competitive. I cannot say what is the correct or best path but understanding the history is important. My personal opinion is that free trade should prevail, and tariffs be minimized by all countries. This will allow those goods and materials that offer the lowest total cost of ownership the opportunity to drive value to consumers and other businesses. We cannot stop change any more than we can stop the sun from rising and setting every day. I encourage everyone to embrace the changes while looking for opportunities to help your suppliers and customers.”

Most of the respondents interviewed by Fastener World believe that the actual impact of the 25% tariff or even reciprocal tariffs may not be revealed until the second half of the year when the implementation of the tax measures becomes more specific and clear, so they will try to respond appropriately to upcoming changes while the public sentiment remains conservative.

U.S. Imposes High Tariffs on Chinese Fasteners, Excluding China from the Market

Kent Chen, General Manager of Sheh Fung Screws, a major Taiwanese fastener manufacturer, stated at the 2025 Global New Economic Order Trends Forum that the U.S. market accounts for over 60% of Sheh Fung Screws’ exports, which China being its biggest competitor. As the U.S.China trade war intensifies, the cumulative tariffs on Chinese fastener products exported to the U.S. have reached a new high. Coupled with Europe's anti-dumping duties on Chinese products, China has been "directly excluded" from the market.

He noted that his products have been subject to the U.S. Section 232 tariffs of 25% since March 4. Although these tariffs are primarily borne by importers, customers are requesting Sheh Fung Screws to absorb about 10% of the tariff rate, which was still under negotiation at the time of the forum. He analyzed that the impact of tariffs on final retail prices is limited, increasing by about 5%, which consumers barely notice. The main concerns are the risks of U.S. inflation and economic recession.

Furthermore, Sheh Fung Screws has established a factory in Vietnam to diversify risks, as Vietnam enjoys zero tariffs on exports to Europe and has lower production costs, offering a price advantage of about 10%. Although the U.S. imposes high taxes on Vietnam, the impact on the company is limited. Order visibility remains at 2 to 3 months, and although the utilization rates of factories in Taiwan and Vietnam have decreased, operations will not be suspended.

U.S. Tariffs on Screws are Impacting the American Manufacturing Industry

The tariffs have disrupted supply chains for manufacturers, prompting some U.S. companies to seek domestic suppliers for small components. Gene Simpson, president of Illinois-based fastener manufacturer Semblex, said: "The production capacity we need does not exist in the U.S. Suppliers are limited." Companies using screws and other metal components affected by tariffs have noted that their customers will not tolerate price increases. Some construction contractors may delay projects until they find ways to mitigate the impact of import tariffs. According to Jason Miller, a supply chain management professor at Michigan State University, approximately USD 178 billion worth of steel and aluminum products imported into the U.S. last year are now subject to a 25% tariff. This is more than three times the value of goods impacted by the initial tariffs in 2018.

“Think Tariffs Boost U.S. Factories? Try Building a Screw Plant,

” Investor Critiques Trump's Economic Strategy

The rising cost of screws is affecting the entire supply chain. Tariffs introduced by Trump on steel and aluminum imports have disrupted supply chains for companies producing a wide range of products, from automotive parts to household appliances, football helmets, and lawnmowers. Unlike the tariffs implemented by Trump in 2018, the latest tariffs cover a broader range of imported goods, including screws, nails, and bolts. Import tariffs on steel and aluminum have increased the costs of both foreign and domestic metals used to manufacture these components. Manufacturing executives have stated that the U.S. lacks sufficient factories to produce the necessary steel wire, screws, and other fasteners to replace imported goods.

Angel investor Balaji S. Srinivasan criticized Donald Trump's tariff strategy in a post on X, calling it economically regressive and disconnected from industrial realities. He remarked, "If you think tariffs incentivize building factories in the U.S., try building a screw factory!" Srinivasan argued that these measures fail to encourage American manufacturing and instead stifle it with debt, layoffs, and price hikes.

In a detailed post, Srinivasan dismantled the logic behind steep tariffs, using a hypothetical example to show how a profitable US-based business can be turned upside down overnight. “Suppose your US company imports USD1M of high quality parts, and adds in its own components to produce finished goods sold for USD1.2M per batch. Your gross profit is USD200k per batch,” he wrote. Now, impose a 30% tariff on the imported parts. The company is forced to pay USD300,000 upfront at customs— cash it likely doesn't have. “Even if you do sell everything, you’re now losing USD100k per batch.” This, Srinivasan says, is the brutal math of protectionism. Instead of reshoring production, tariffs end up punishing companies that still operate domestically but rely on global supply chains. "With a sinking feeling, you realize your profitable business has suddenly become unprofitable."

Industry Development

Taiwan Fastener Exports Rebound, Q1 Export Volume Grows

Over 3%

According to the latest statistics from Taiwan Industrial Fasteners Institute, Taiwan’s fastener exports reached 327,100 tons in the first quarter of 2025, an increase of 3.37% compared to the same period last year, indicating a gradual recovery in the export market. Although the average export price dropped slightly by 2.82%, the increase in shipment volume drove overall export performance upward. Among major export markets, Taiwan’s fastener shipments to the United States, Japan, Germany, Spain, and Sweden showed significant growth. The U.S. market performed particularly well, with exports reaching 153,300 tons in Q1, up 5.15% year-on-year, accounting for nearly half of total exports. Industry analysts attribute this to the U.S.-China tariff war, which imposed high tariffs on Chinese fastener exports to the U.S., reducing their price competitiveness and creating opportunities for Taiwanese suppliers to gain orders. Additionally, European markets saw strong growth as U.S. tariffs prompted early bulk purchasing. In March, exports to Germany, Belgium, and the Netherlands increased by 102.66%, 117.83%, and 175.41% month-on-month, respectively, demonstrating robust momentum.

CBAM Emission Calculation May Only Cover Input Materials

There is a very good chance that the carbon emission calculation method of the EU's CBAM measure will be amended after the third quarter of this year, which may make the original requirement of “including carbon emission data of all production steps” to “only focus on the carbon emission data of input materials”. If the amendment is passed successfully in September this year, it is expected that it will significantly reduce the burden of manufacturers of fasteners and other related products in calculating the carbon emission of each stage of the production process. According to an amendment proposed by the European Committee (EC) to the European Parliament (EP) on February 26th, in view of the complexity and difficulty of including all carbon emissions from manufacturing processes in the calculation, and taking into account the suggestion of the European Fastener Distributor Association (EFDA) that “most of the carbon emissions from fastener manufacturing come from the input materials”, the carbon emissions from manufacturing processes are relatively low, and since the final processes of the metal manufacturing sectors are not under the EU ETS, it is therefore proposed to exclude the carbon emissions from production steps other than input materials.

GTRI Urges Indian Government to Withdraw Steel Fastener Quality Norms Over Supply Chain Risks

The Global Trade Research Initiative (GTRI) has called on the Indian government to withdraw the mandatory quality control order (QCO) requiring Bureau of Indian Standards (BIS) certification for steel fasteners. GTRI warns that the implementation of these norms, effective from March 20, 2025, will disrupt supply chains and cause significant operational challenges for industries dependent on imported fasteners.

While India produces standard fasteners domestically, it relies heavily on imports—especially from China, Japan, and South Korea— for specialized products. The complex and slow BIS certification process discourages foreign manufacturers from registering, risking shortages that could impact sectors such as construction, automotive, aerospace, machinery, and defense. GTRI founder Ajay Srivastava urges the government to reconsider the QCO and adopt more pragmatic measures, including mutual recognition of international certifications or phased regulatory implementation, to balance quality assurance with industry needs and prevent job losses among small domestic manufacturers.

ITA Hosts Video Conference on U.S. Rules of Origin and Customs Clearance Systems

The U.S. reciprocal tariff measures have had a tremendous impact on major industries around the world. In order to help industry players understand the U.S. standards for determining the origin of imported products and facilitate smoother export declarations, the ITA of MOEA (Taiwan) invited U.S. attorneys on April 24th to explain the current U.S. rules of origin and the product clearance system to industry players. In order to grasp the latest U.S. import customs regulations and enhance market competitiveness, a number of Taiwanese companies from different industries participated in the online meeting.

The focus of this meeting was not limited to specific product items, but rather a comprehensive explanation of the latest regulatory requirements, processes, review methods and specific restrictions on the products exported to the U.S. The definition of entry, the details covered by CBP Form

7501 and key points of examination, the responsibilities and regulations of Importer of Record (IOR), record keeping, FTA and the determination of place of origin, and the third-party transshipment regulations and so on were mainly discussed in the meeting.

As CBP's clearance determination may vary with different product characteristics and applicable standards, and there still exis t ambiguity in some CBP guidelines, for further reference, traders can access the Customs Rulings Online Search System (rulings.cbp.gov) to search for past cases.

Companies Development

Jean Fahy Joins Arrow Fastener as National Account Manager

Arrow Fastener, a division of GreatStar Tools, has announced the appointment of Jean Fahy as National Account Manager. Fahy brings extensive experience and leadership from the building materials industry to the role.

Fahy stated, “I’m thrilled to join Arrow and contribute to the growth of these iconic brands in the independent and pro dealer market.” Her expertise is expected to strengthen Arrow Fastener’s relationships with key accounts and support the company’s expansion efforts.

Arrow Fastener is known for its innovative fastening tools and solutions, serving professional contractors and independent dealers nationwide. Fahy’s addition to the team reflects the company’s commitment to enhancing customer engagement and driving growth in competitive markets. This strategic hire aligns with Arrow Fastener’s goals to expand its market presence and reinforce its reputation as a trusted leader in fastening solutions.

Michigan Fastener Expands with New Wire Processing Plant, Strengthens Domestic Nail Supply

Michigan Fastener, based in North Branch, Michigan, has rapidly grown since its founding in 2014, now operating multiple production lines and a new in-house wire rod processing system. This expansion enables the company to produce a wide variety of pallet nails, including bulk and coil nails ranging from 1¼ to 3½ inches in length and various diameters.

Owner Jon Will emphasized the company’s commitment to quality, highlighting advanced cleaning and laser inspection systems that ensure nails run smoothly in automated machines like Viking nailers. Michigan Fastener uses high-quality domestic steel with a washed-on finish for corrosion resistance and durability, catering to pallet manufacturers who require reliable, high-performance nails.

With growing concerns over trade restrictions, Michigan Fastener’s fully domestic production offers a stable alternative for pallet companies seeking to diversify nail suppliers. The company continues investing in technology and capacity to meet nationwide demand with competitive pricing and fast delivery.

Huyett Launches Extensive New Line of Industrial Threaded Fasteners

Huyett, a industrial fastener distributor and manufacturer, has launched a comprehensive new line of threaded fasteners. The expanded product offering includes over 60,000 items across five major categories: bolts, screws, nuts, washers, and anchors. This launch aims to provide distributors with a wide selection of both common and hard-to-find fasteners, enhancing flexibility and quick market response.

Key products include hex bolts, machine screws, shoulder bolts, carriage bolts, hex head lag screws, lock nuts, self-tapping screws, and wood screws. Huyett’s CEO, Tim O’Keeffe, emphasized the company’s strategy of “Odd Parts, Odd Lots, On Time,” addressing the market gap between bulk importers and distributors seeking smaller quantities at competitive prices. O’Keeffe highlighted that this product line strengthens Huyett’s competitive edge by combining extensive product variety with reliable lead times and superior customer service.

New Sunco Industries Publication Hits Bookstore Shelves

The World's Oldest Office Lady’s Guide to a Fulfilling Career was released across retail platforms in Taiwan on April 25, also available in South Korea. From the perspective of Ms. Yasuko Tamaki, a section chief in her nineties who holds a Guinness World Record as the oldest working employee in Japan, the book advocates "age is no barrier" and "I thrive because I do what I love." It emphasizes sustaining professional passion and life motivation through pursuing one’s passions, sharing lifelong career values and mindset strategies, while demonstrating how to integrate interests with expertise to cultivate a fulfilling, enduring work life.

This article was featured in the 5th issue of Socket Boy (April 2025) published by Sunco Industries.

Japanese Fastener Trading Company, Sunco’s Commitment to CBAM

An Industry First CBAM Seminar for Domestic Suppliers

Regular Quality Improvement Seminars

Sunco Industries held a seminar regarding Carbon Border Adjustment Mechanism (CBAM) on the 25th of September last year. It was the very first time in the industry that a Japanese trading company independently organised a large-scale seminar on CBAM. Sunco Industries regularly holds quality seminars for members of Sunco-kai to enhance their ability to provide higher quality products. About 190 members of the Sunco-kai, a cooperative association with Sunco’s main suppliers, attended the CBAM seminar. Mr. Keishi Okamura from Zeroboard Inc. was invited to give the presentation on CBAM, which will be fully implemented from January 2026.

Feedback From Suppliers After Attending the Seminar

The seminar provided detailed explanations of the CBAM mechanism and the measures needed in the future. It was explained that it will also affect Japanese companies and that their products may lose competitiveness if measures are not taken. After the seminar, one supplier said, ‘The seminar was very informative, as I was not very aware of CBAM. We will have to educate our employees about it’. There were several positive comments on CBAM initiatives, such as ‘We hope to receive more information on CBAM from Sunco Industries’ or ‘It is inevitable for the future development of the fastener industry in Japan. Penetration will be the theme for the future’.

Sunco Is Taking Action to Apply CBAM

During this transition period, few Japanese fastener companies are taking action to comply with CBAM’s regulations. Although CBAM will be applied from 2026, Sunco Industries has already started responding to a gradual increase in customer enquiries about CBAM and requests for documentation.

Cooperation with key suppliers is essential for delivering high-quality Japanese fasteners to the rest of the world. It is expected that the company will continue to lead in sharing information on CBAM with its suppliers and guide the Japanese fastener industry.

What is CBAM?

CBAM is a tariff system for the imported products from outside the EU based on their greenhouse gas emissions. All imports from outside the EU, including Japan, are subject to CBAM’s tariff system.

Acquisitions

JRG Automotive Acquires Stanley Engineered Fastening's Two-Wheeler Plastics Division

JRG Automotive Industries has expanded its South Indian manufacturing presence by acquiring the two-wheeler functional plastics division of Stanley Engineered Fastening India (SEFI). The deal includes two production facilities in Manesar and Bangalore, enhancing JRG’s footprint in key automotive regions.

The acquired division produces plastic injection-moulded components for two-wheeler OEMs, construction equipment makers, and Tier-1 suppliers across India. SEFI, part of Stanley Black & Decker, will continue its core engineered metals and plastic fastening operations in Chennai and Bangalore. Pawan Goyal, JRG’s Founder and MD, said the acquisition strengthens the company’s capabilities and expands its reach into infrastructure equipment manufacturing. JRG, known for precision plastic components for automotive and defense sectors, aims to double its revenue this year through strategic growth initiatives.

Alcoa Acquires Two California Aerospace Fastener Manufacturers

On March 12, 2025, Alcoa Inc. announced the acquisition of Republic Fastener Manufacturing Corporation and Van Petty Manufacturing from The Wood Family Trust. Both companies specialize in aerospace fasteners and are based in California.

Founded in 1968, Republic Fastener focuses on “super standard” aerospace locknuts and operates the Boots Aircraft Division, offering a broad range of sheet metal and wrenchable fasteners used by major airframe manufacturers worldwide. Van Petty, established in 1943, produces highperformance precision aerospace fasteners primarily for engine and equipment manufacturers. Together, the two businesses generated USD 51 million in revenue in 2007.

This acquisition marks a significant expansion for Alcoa Fastening Systems, which has seen aerospace revenues grow from USD 1.5 billion in 2002 to over USD 3.7 billion in 2007. Alcoa’s aerospace portfolio includes fastening systems, investment castings, forgings, and aluminum extrusions serving the aerospace market globally.

Awell-knownmarket survey company reports that the European industrial fasteners industry achieved revenues of USD 22.959 billion last year. From 2025 to 2030, the industry is expected to grow at a compound annual growth rate of 3.3%. Despite significant economic challenges in Europe’s market climate over the past few years, demand for fasteners remains strong. As a bellwether for the European fastener industry, Fastener Fair Global embraced its tenth edition in 2025. The show spanned halls 1, 3, 5, and 7, covering 52,000 square meters of exhibition space, with the participation of over 1,000 exhibitors from more than 40 countries. The event also featured an innovation display area showcasing many creative new products for the year.

According to the organizer’s press release, the majority of exhibitors came from major fastener-manufacturing countries, with high participation from Germany, Italy, Taiwan, China, India, Turkey, the Netherlands, the UK, Spain, and France. Fastener World (the Taiwan sales representative for Fastener Fair Global) led over 160 Taiwanese exhibitors there to participate, forming a highlight at the event. Additionally, exhibitors from other Asian countries like India, Indonesia, Vietnam, and Japan booked large booths to showcase products, aiming to secure more partnerships and competitive advantages in a challenging market environment.

Supply Chain Restructuring Brings New Opportunities

European Buyers Flock to Fastener

Fair Global 2025

Fastener World sent many exhibition specialists to our two booths in halls 5 and 7. Besides matching visitors with fastener suppliers from various countries, we interacted with other exhibitors to gather the latest market intelligence from European suppliers. Our specialists revealed that from the first day of the show, there had been a surge of visitors, mostly European distributors and importers. We had many visitors flocking at our booths, including fastener manufacturers, buyers and distributors who mentioned that the global fastener supply chain is undergoing a "restructuring" in 2025, and that many importers are seeking to establish additional sources beyond their current suppliers and are building more robust and intimate supplier partnerships to face future challenges such as tariffs, carbon reduction targets, as well as potential economic and supply chain risks. This indicates that the demand for fasteners in Europe is not fading and the supply mechanism between Europe and various countries will likely be further strengthened due to current international political and economic situations. In summary, the era of supply chain restructuring is driving a new wave of business opportunities. Therefore, some of those who had received Fastener World magazines before came to our booth for the latest issue. We even met buyers from as far away as Northern Europe and Belarus who hoped to find more fastener sources through our magazines.

The organizer has announced that the next Fastener Fair Global will be held on April 6-8, 2027 at Messe Stuttgart. For more information, check out Fastener World’s website at www.fastener-world.com

AIMREACH

ANCHOR

CHANG YI

CHIAN YUNG

CHANNG CHIN

CHIAO CHANG

CHIEH LING

CHIREK CHIN LIH HSING

CHONG CHENG

CHU WU

CHUN ZU

CHUN YU CORNWALL

CO-WEALTH

TAIWANESE EXHIBITORS

DE HUI

E CHAIN

EXCEL

FAST ASIA

FIRST STRING

FU KAI

DA YANG

FANG SHENG

FENG YI

FONTEC

FALCON

FASTENER JAMHER

FONG PREAN DAR YU

FAREAST METAL

FILROX

FRATOM FASTECH

HU PAO

J. T. FASTENERS

JOINTECH GOOD YEAR

H-LOCKER

HSIEN SUN

HUANG JING

J.C. GRAND

JOKER

KAO WEIN

HAO MOU HOMEYU

HSIUNG JEN

HWALLY

JI LI DENG

K. TICHO

GUANG ZHE HOME SOON

HSIN CHANG

JACKWAY

JUNG SHEN

HOMN REEN

GOFAST FWU KUANG

GOOD USE

EXHIBITORS

LOYAL & BIRCH

LONG HWA

MAO CHUAN

KWANTEX

LINWELL

TIFI

ROST

SEN CHANG

RENETSAF

SHAW GUANG

SHIANG GING

SHEN CHOU

REXSON

RONG YIH JIANG

SAN YUNG

OFCO NOVA. ORIENTAL

PATTA

EXHIBITORS

TAI HUEI TFTA

SIN FU SHAN

SPRING LAKE SUPER NUT SOON PORT

SHYANG SHENG

SHIN CHUN SHIN GUANG YIN

SHIN JAAN

SCREWTECH TAIWAN PRECISION

TAIWAN SHAN YIN TONE DAR SEEN TANG AN TSUNG YANG

YANG

WAYNETEL WINGTONE

DELL'ERA ERMANNO

BOSSONG

EUROBOLT

SCHÄFER + PETERS TECFI

VALENTA

HALFMANN

MITTER FASTENERS

ROTEX

TOHOKU BOLT

MAVITA

NAKAUMI VIETNAM

TEROX

WRENTHAM TOOL

JUNTASA MKT

SACMA

UNIVERSAL PRECISION SCREWS

GARUDA METALINDO

METAL FASTENERS

NUOVA RIVETTERIA BOLOGNESE

Editor’s Select Innovative Products

System 6 Aluminum by 310Express

Japanese 310Express has released the new System 6 Aluminium under its TRF ® series. The new product is lighter in weight and is available in different colors such as black, blue, green, purple, and red. This new anti-theft and high-security product under the TRF® series is RoHS compliant and is very difficult to remove without using a special tool.

BIT-LOK™ Technology

by The Phillips Screw Company

BIT-LOK™ requires no force to keep the bit in the recess. It is useful in overhead or ladder situations where it is difficult to apply pressure and is useful in hard-to-reach areas like cabinets and enclosures. It can reduce chance of material damage from cam-out and can also reduce effort and chance for injury when driving many screws.

Superclamp

by Jubilee Clips

Superclamps offer the highest tightening torques with 8.8 high tensile bolts allowing an impressive maximum recommended torque of 25Nm. Naturally with the smaller clamps using a smaller bolt the torques are lower, but even so, the torques are impressive by comparison to alternatives for the same size range. Available in zinc protected mild steel and both 304 (A2) and 316 (A4) grades of stainless steel suitable for marine and offshore oil and gas applications.

GR GREEN PRO by G&W

The “GR GREEN PRO” for all building supports is a high performing Eco Green Plug designed for a green planet. It is made of high-strength polymers that guarantee high load value. Its elastic collar allows a throughfastening and the 4-sector body structure helps increase adaptability to the base material. It also has the anti-rotation wings, S-slot, and the internal guide for correct screw insertion.

Battery Riveter for Blind Rivet Nuts

by Bralo

The BT-18N riveting machine is a professional tool for installing rivet nuts with high quality riveting. High performance riveting machine with automatic threading and unscrewing for higher performance. It offers quality riveting thanks to quick stroke or pull force adjustment with built-in LED display. It also has an LED light for better visibility of the working area.

Fastener World Dinner Gala

On the 1st day of the Fair, Fastener World specially booked a famous German buffet restaurant in the suburbs of Stuttgart and invited reps of Taiwanese exhibitors, International Fastener Expo (IFE)'s show managers travelling all the way from the U.S., and overseas marketing reps of Japan's largest fastener distributor Sunco to enjoy the dinner gala together.

In the beautifully lit and nice atmosphere, more than 100 exhibitors enjoyed the local German cuisine “Spätzle” (commonly seen in the Schwaben region of Germany), various traditional dishes and German beers.

Germany

+ MUNICH

Post-show City Tours

For exhibitors to relax after the busy 3-day Fair, Fastener World specially arranged a number of post-show sightseeing tours for Taiwanese exhibitors to enjoy the diverse cityscapes of Europe.

These tours included the medieval European town Rothenburg, the vibrant city center of Munich, the picturesque Lucerne and the city streets of Zurich, which attracts a large number of visitors every year, the old town of Pilsen in the Czech Rep. famous for its beers, and Prague, which is full of humanistic and artistic atmosphere. All participants of these tours took their time to take nice photos and experience the cultural characteristics of Germany, Switzerland and the Czech Republic.

Switzerland

LUCERNE + ZURICH

ROTHENBURG

Czech Rep. PILSEN + PRAGUE

Fastener World and Taiwanese Fastener Enterprises Visit Mercedes- Benz and Porsche Plants

Mercedes-Benz Sindelfingen Plant

On March 25, 2025, Fastener World and dozens of Taiwanese fastener enterprises’ reps toured Mercedes-Benz’s plant in Sindelfingen, Germany, the largest plant of Mercedes-Benz in the world. The plant spans over 318,000 square meters and primarily produces high-end models of Mercedes-Benz (e.g., Maybach, S-Class, and E-Class).

The visiting group watched an introductory video to understand the layouts of the plant (including the design and R&D area, assembly zone, painting zone, delivery center, etc.) and listened to the briefing by its narrator. They also visited the staff training center, employee cafeteria, and test-driving facilities.

A standout feature was the plant's direct railway connection to major European cities, enabling efficient shipment of newly manufactured vehicles across Europe and exports to global markets, showcasing the advanced logistics system of Mercedes-Benz.

Porsche Museum

On March 26, 2025, the group of Taiwanese fastener enterprises visited Porsche Museum and its plant to witness its worldly-known cutting-edge production processes and exceptional manufacturing and R&D capabilities. Porsche has invested heavily in enhancing its production efficiency by introducing automated guided vehicle (AGV) technology and building a high-bay warehouse with a storage capacity of 35,000 cubic meters. This reduces truck transportation needs and improves logistics efficiency, highlighting Porsche's leadership in automotive manufacturing.

This trip not only inspired innovation among participants, but also provided valuable insights for the Taiwanese fastener representatives to enhance their competitiveness and explore international collaboration opportunities.

Many members of the visiting group said that during the visit, they not only experienced a thorough understanding of Porsche's brand spirit, company history and business philosophy, but also fully felt the pride and honor of Porsche’s staff on-site.

Wrap-up

As the world's largest and most leading international exhibition within the fastener industry, Fastener Fair Global not only attracts a great number of leading European and American fastener manufacturers and distributors (such as Sacma, Eurobolt, Ambrovit) to participate every year, but also draws the attention of many fastener businesses from Asia (Taiwan, China, India, Japan and Korea, for example) which regard the Fair as their first choice and a shortcut to entering the European market and expanding the market share in Europe. The exhibitors and visitors of the Fair are highly international. Not only did we see many familiar frequent exhibitors, but we also met many new faces on-site. Through face-to-face interaction at the Fair, exhibitors and visitors can accelerate the exchange of technical and industrial info between each other on the one hand, and open up unlimited possibilities for future bilateral cooperation on the other hand.

Fastener World's staff on-site also had talks with several exhibitors and received a lot of positive feedback:

• "The show and the number of visitors this year are very good," said Tak Saima, General Manager of 310Express, Japan.

• "This has been our 7th time to participate in Fastener Fair Global," said Peter Demuth, Sales Manager of Fürniss GmbH, Germany.

Many unnamed Taiwanese exhibitors also told Fastener World that they had met a lot of new potential customers during the 3-day show and were looking forward to expanding their business in Europe.

For more detailed information about the next edition of Fastener Fair Global scheduled to take place on April 6-8, 2025, please stay tuned to Fastener World’s official website.

Next-Generation Power Pro® Fastener

This advanced wood screw by Hillman features a dual thread design that enables 30% faster installation while maintaining strong holding power. Tim Ferguson, Hillman’s VP of Product and Engineering, highlighted the fastener’s ability to eliminate pre-drilling with a selfstarting tip and optimized threads that reduce wood splitting. The screw also includes a star drive to prevent cam-out, integrated countersinking blades for clean finishes, and a no-split twist shank for durability.

Designed for decks, subfloors, framing, and fences, the Power Pro fasteners improve speed and efficiency in wood construction. Hillman plans to release complementary accessories in Q3 2025, such as magnetic tool holders and TrapJaw® spring-loaded pouches, along with durable beam and joist tape.

Hidden-Fastener Solar Mount

Martin Roofing and Solar has won a prize from the U.S. Department of Energy’s Solar Energy Technologies Office (SETO) as a semifinalist in the American-Made Solar Prize program. The company’s innovation, the Hidden-Fastener Solar Mount (HFSM), is designed for asphalt shingle and composite slate roofs and eliminates the need to drill holes in the exterior roofing layer.

Unlike traditional solar mounts that penetrate all roof layers, HFSM installs beneath the roofing layer by attaching through the nail strip. This method avoids removing shingles; installers simply lift the shingle seal, install the mount, then reseal the shingles to cover fasteners. It can be used on existing roofs or integrated during reroofing, a common time for solar installation.

Constructed from durable, U.S.-made 5052-grade aluminum, each mount weighs just 0.6 lbs. Preston Nelson, Martin Solar’s director, highlights HFSM’s ability to virtually eliminate leak risk, offering installers greater confidence in rooftop solar installations.

Ultra-low Thrust Single-axis Automatic Screw Driving Machine

Nitto Seiko (Japan) officially announced the new "FEEDMAT® FM513 Series Ultra-Low Thrust Single-Spindle Automatic Screw Driving Machine." This new product is designed for industries with stringent component performance requirements such as the automotive sector. It effectively reduces the thrust applied during screw fastening, minimizing the risk of damage to screws and substrates, thereby enhancing product quality.

The new model employs digital thrust control technology to finely adjust the thrust during the fastening process, preventing excessive pressure that could cause screw seizing or substrate deformation. It also increases fastening speed by 40% compared to traditional products, significantly shortening production cycles. It is especially suitable for fastening screws in deep or specially shaped parts, meeting the demands for both "finer" and "faster" fastening.

Nitto Seiko emphasizes that this product integrates a screw feeder, fastening unit, and controller into a comprehensive system. Combined with last year's high-precision low-torque NX driver, it creates a rare complete screw fastening solution in the industry, providing a more efficient and reliable technological platform for automated production lines.

compiled by Fastener World

AI Inspection Machine QV-7100AI

From Japan, K&K Engineering’s new inspection machine, the “QV-7100AI,” utilizes AI to distinguish between good and defective products, while also enhancing the user operation experience. The goal is to reduce the workload of on-site inspection tasks.

The QV series inspection machines are centered around “High Quality Vision System,” offering customized models tailored to different inspection targets and building a solid track record. The newly launched “QV-7100AI” emphasizes operational efficiency and user experience on the shop floor. Through repeated research, the AI-based recognition function is integrated with an intuitive user interface, enabling quick setup and precise inspection. This model further expands the QV series product line and strengthens the company’s technological presence in the field of automated inspection.

4.8 Tension Control Bolt

Tsukimori Kougyo (Japan) developed this product to enable visual confirmation of fastening completion while ensuring stable axial force. Testing on M20 specifications under 280Nm tightening torque showed that after a 17-minute NAS vibration test, traditional hexagonal 4.8 bolts retained only 180Nm (64% of the original torque), whereas this product maintained 260Nm (93%), improving the axial force retention by 44%. The technology originated from a 2021 R&D project subsidized by Japan's Ministry of Economy, Trade and Industry, and secured a patent in 2022. Combining specialized wrenches with cold forging techniques, it streamlines installation while ensuring torque accuracy, supporting specifications up to M36 and offering innovative solutions for anti-loosening needs in construction parts.

European News

Hyperion Materials & Technologies Acquires TEMSA

US-based Hyperion Materials & Technologies, a global materials science company specialising in advanced hard and super-hard materials for various industries and applications, has announced an agreement to acquire TEMSA Transformaciones y Estudios Metalúrgicos SL, along with its sister companies PLUSDUR SL and METADUR SL. In addition to serving its existing customers, TEMSA will become a vital part of expanding the Hyperion business to Europe. This business uses Hyperion’s global footprint to provide specialised, precision finishing capabilities for tailored, high-quality wear components and tooling.

“TEMSA is exactly the partner we have been looking for to expand and enhance our custom wear part offering in Europe. Its engineering expertise, investments in machining technology, and competence working with tungsten carbide, has made the company a go-to supplier for turnkey hard materials projects,” comments Ron

A Change to WAFIOS’ Executive Board

After 51 years at WAFIOS, Martin Holder has stepped down from the executive board and is starting his retirement, with the new executive board made up of Dr Ing Uwe-Peter Weigmann, speaker of the board, as well as new members Dipl Ing Jörg Eisele and Dipl Ing Martin Mayer. Dr Ing Uwe-Peter Weigmann studied forming technology at Technische Universität Berlin. During his doctoral studies, he worked with Prof Dr Günter Spur as a senior engineer in the field of manufacturing technology and machine tools and obtained a doctorate in the same area. He has been part of the executive board, heading up Engineering, since 2008. In 2012, he was appointed speaker and broadened his remit to include HR and assumed responsibility for Sales and Finance in 2017.

Voigt, chief executive officer at Hyperion. “We are energised by the capabilities and talented employee base that TEMSA brings to the Hyperion family. We look forward to working together to build long-lasting relationships that will benefit Hyperion and TEMSA customers.”

For almost 40 years TEMSA, a worldwide leader in tooling manufacture, has gone beyond its limits, always focused on helping customers across a wide range of industries meet complex tooling requirements. With a team of 100, including engineers, highly skilled machine operators and technical experts – at a 8,000m2 production facility in Barcelona, Spain – TEMSA will provide a strong complement to Hyperion’s European operations.

“We are thrilled to join TEMSA’s expertise in high precision tool manufacturing in ultra-small batches with Hyperion’s global competence in hard materials,” says Xavier Collell, CEO of TEMSA Group. “By joining forces with Hyperion and its unique competences, we look forward to achieving new solutions for our customers and leveraging our combined technological expertise to drive market innovation.”

Jörg Eisele joined the company back in 2004. After successfully completing his degree in mechanical engineering, Eisele began his career at WAFIOS as an assistant to the head of design, where he focused on developing innovation management. Alongside his work, he studied for an MBA at the Technical University of Munich, which he completed in 2009. At WAFIOS he went on to lead the tool center and, later, the technical development department for various machine areas.

Since 2017, Jörg has been responsible for the entire tube and wire division, including the technical development, sales and commissioning departments for various machines, such as spring coiling, wire bending, CNC tube bending, straightening, chain manufacturing and eMobility machines. As of 2021, he also assumed overall responsibility for sales at WAFIOS.

Martin Mayer joined WAFIOS AG in February 2023 and is responsible for the tool centre and mechanical production. After successfully completing his degree in mechanical engineering, majoring in design and development, at Esslingen University of Applied Sciences, he joined NAGEL Maschinen- und Werkzeugfabrik GmbH in Nürtingen as a development engineer in 2007. Mayer left the company 15 years later as technical director.

Hilti Group Reports Growth in Challenging Environment

In 2024 Hilti Group increased sales by 1.5% in local currencies compared to the previous year. In Swiss francs sales declined by 1.4% to CHF 6.4 billion (€6.82 billion) due to negative currency effects. Jahangir Doongaji, CEO of Hilti Group, explains: “In a negative market environment, we saw slight growth in local currencies. In addition, we made good progress in implementing our strategic priorities in 2024 and invested significantly in our future.”

Wurth Group Maintains Sales Level

Würth Group closed 2024 with sales of €20.2 billion according to its preliminary annual financial statements. This corresponds to a year-over-year decrease of 0.9% and 0.4% when adjusted for currency effects. As a result of the lower sales volume and higher costs, the Group’s preliminary operating result stands at €900 million, which is below the previous year. The persistently weak economic situation, particularly in the manufacturing industry, had a major impact on Würth Group’s sales development.

High interest rates further softened the global construction market in 2024, especially in Europe, where Hilti Group’s sales declined by 0.2% in local currencies. In the Americas growth was at 2.2%, with a double-digit increase in Latin America. Sales in Asia/Pacific grew by 4.7%, with the region benefiting from positive developments in North Asia. In the eastern Europe, Middle East, Africa region sales grew 5.9%, with strong contributions from the Middle East countries.

The continued appreciation of the Swiss franc, against the major currencies, led to a negative currency effect of -2.9 percentage points on sales in the full year comparison. For 2025, the Hilti Group expects a similar market environment and comparable sales growth in local currencies.

Robert Friedmann, chairman of the central management board of the Würth Group, underlines: “Given the economic and political conditions, I am pleased to report that Würth Group was able to maintain its sales level of €20 billion. This development was primarily driven by the trade related areas, which showed a stable sales trend. In 2024, we stuck to our counter cyclical strategy and invested when others scaled back. Our focus is on keeping goods available and maintaining our delivery readiness for our more than four million customers worldwide.”

In Germany, the Würth Group’s domestic market, the Group companies generated sales of €8 billion, down 4.1%. The companies outside Germany were able to achieve slight sales growth due to acquisitions, among other things.

Bossard Achieves Strategic Progress in 2024

In an environment of subdued demand and a strong Swiss franc, Bossard Group faced declining sales in the 2024 financial year – decreasing by 7.7% to CHF 986.4 million (€1.05 billion), whilst the previous year reached CHF 1.07 billion. In local currency, the decline amounted to 5.8%. Adjusted for acquisitions, sales in local currency were 7% lower than in the prior year. Sales development in the individual regions showed a mixed picture. While demand in Europe stabilised in the second half of the year, America experienced a drop in sales and Asia saw satisfactory growth. Sales in the fourth quarter declined by 2.3% to CHF 236.6 million (prior year: CHF 242.2 million), a drop of 1.1% in local currency and an organic decrease of 5%.

The restrained demand evident since the second quarter of 2023 was intensified by continuing customer inventory reductions and the strong Swiss franc. Bossard took advantage of the economic headwinds to make significant strategic progress. Technological expertise was strengthened, among others, through the successful introduction of the new IT platform in nine additional business units; market positions were expanded locally; as well as Bossard’s presence in growth industries enhanced through organic growth and targeted acquisitions.

Bufab Concentrates on Strategy

Bufab Group net sales declined by -4.1% to SEK 1.86 billion in 2024 (2023: SEK 1.94 billion), with organic growth down 1.5%, as well as order intake somewhat lower. Erik Lundén, president and CEO at Bufab, comments: “During the year, we have successfully implemented our strategy across the business. We strengthened the added value we deliver to customers by an expanded service and product portfolio.”

“One example is the implementation of a record number of new logistics solutions during the year that strengthen our

In Europe, Bossard posted a fourth quarter growth of 6.1% to CHF 136.5 million (in local currency: +7.2%). Adjusted for acquisitions, growth in local currency amounted to 0.1%. The acquisitions in Belgium and France with Dejond Fastening N.V and Aero Négoce International SAS – laying the foundation for further growth in a new market and in the aerospace industry. The acquisition of the German Ferdinand Gross Group, announced in mid-October, also enables Bossard to further expand its already strong market presence in Germany and eastern Europe. The transaction was concluded at the beginning of January 2025.

In the final quarter of 2024, sales in America declined by 27.9% to CHF 51.1 million (in local currency: -27%). Lower demand, mainly due to weakening demand in the electromobility and agriculture sector, persisted through the end of the year.

Sales in Asia increased by 15% to CHF 49 million (in local currency: +16%) in the fourth quarter. Business developments in the region were increasingly positive over the course of the year and continued to consolidate in the fourth quarter. In China, the first signs of growth became evident and demand in most of the other regional companies was likewise satisfactory. In India, Bossard benefited from the ‘Make in India’ initiative and in Malaysia from nearshoring trends that had a particularly positive impact in the semiconductor and electronics industries.

customer relationships and provide us with an increased growth rate,” continues Erik. “We also acquired VITAL, a leading Italian distributor of C-parts, and divested the manufacturing companies Bufab Lann and Hallborn Metall. In conclusion, we are in a good position to be able to deliver on our profitability target.”

Bufab reported an increased gross margin in the fourth quarter, in a continued cautious market. The acquisition of VITAL, with net sales of €48 million, strengthens Bufab’s position on the Italian market. During the fourth quarter the market trend continued to be cautious, resulting in organic growth of -1.5%. However, the organic growth showed an improvement compared to the third quarter, when it was -2.6%.

Erik concludes: “We continue, according to plan, to implement our strategy and our short-term priorities remain – to capture market share, gradually improve our margin and deliver a strong cash flow.”

Brazilian News

Brazilian Fastener Trade Does Not Stop Increasing

by Sergio Milatias, 'Revista do Parafuso' (The Fastener Brazilian Magazine) revistadoparafuso@revistadoparafuso.com www.revistadoparafuso.com

After achieving a record over the fastener import during last year, Q1 2025 has shown that a new high trend is ongoing in the Brazilian market. Comparing the first three months of 2024 over 2025, the quarter-over-quarter increase in Q1 2025 was 12.7% (export and import value combined), overcoming another result already a so expressive.

SouthWind, 30 Years

CRV Parafusos on Expansion

This young Brazilian company is celebrating 25 years with new headquarters opening.

The company is the leading provider in Brazil on machines and tools for the fastener industry.

Founded in 1995, SouthWind International celebrates a significant milestone in its successful trajectory, serving the fastener industry – in Latin America, USA and, mainly, in Brazil – with dedication, innovation and commitment to excellence, from raw material preparation and wire drawing to the final product, which is inspected and packaged.

The company has distinguished itself in the Brazilian and South American markets as a reliable partner among manufacturers of coldformed metal items. From the beginning, it has positioned itself as a driving force in the supply of high-quality machinery, equipment, tools and auxiliary equipment, with product lines capable of transforming the industry and meeting the most rigorous market demands.

Located in Colombo town, Paraná State, Brazil, CRV Parafusos is a fastener commercial company, which is celebrating 25 years of foundation.

It inaugurated its new headquarters, 10,000 m² in size, with more than 50,000 different items in stock (of which 70% are imported),

J. Graef (SouthWind CEO)

Cláudio and Rafael Vieira

mainly composed of stainless steel fastener lines. The new unit is fully modern and qualified to serve customers over Brazil with total excellence.

“After the expansion as well as structural improvements, we are better managing our very robust inventories,” said Cláudio and Rafael Vieira (brothers).

The brothers, being the founders and directors of the company, were at Feicon 2025, the biggest construction show in South America, held April 8 – 11, 2025.

CRV Parafusos has a successful trajectory on trading fasteners and accessories, serving several user sectors. “Our main market fields include manufactures of furniture, metallurgical, agricultural machines and equipment, construction, and naval supply", concluded them.

ArcelorMittal

Inaugurates New Wire Rod Drawing Line

An expected increase of 35% in special high value-added steel production

With the Romeu Zema in attendance, the governor of Minas Gerais State, Brazil, ArcelorMittal inaugurated a new wire rod drawing line, in a ceremony held on March 14, 2025. The expansion was held in the steel plant in Sabará Town, near Belo Horizonte State Capital.

With investments around USD 25 million, the expectation is to get 35% increase in the production of high valueadded solutions for the automotive sector and industry. The company's plan is to strengthen its portfolio for manufacturers of axles, fasteners, shock absorbers and springs, which is seconded by Jefferson de Paula, the ArcelorMittal Brazil President, and the CEO of ArcelorMittal Long Steels and Mining for Latin America.

Gov. Romeu Zema and Jefferson de Paula

Turkish News

provided by Irem Yaren BAYSAL, Editor of Fastener Eurasia Magazine www.fastenereurope.com

ARMA BAĞLANTI SİSTEMLERİ Increased Exports to

50% in 2024 with New Projects

2024 Activities

As of 2024, ARMA Ba ğ lant ı Sistemleri continued to consolidate its position in the sector with its growth in both local and international markets. 2024 has been a year of significant developments for the company both in domestic operations and in the international market. The company maintained its growth momentum by achieving a 6% increase in turnover. The export rate increased from 47% in the previous year to 50%, and it was an important step for the company to have a greater say in the international market.

In order to increase production quality and safety, the ISO 45001 Occupational Health and Safety system certificate was successfully obtained. The renewal of ISO 9001, ISO 14001 and IATF 16949 certificates drew attention as an indicator of the importance given to quality management systems. 90% progress has been made in the process of obtaining ISO 27001 and TISAX certificates.

Thanks to the innovative solutions that Arma offers to its customers, sample approvals have been obtained for more than 20 projects in the automotive and white goods sectors. These projects concretely demonstrate the added value and innovation that ARMA Bağlantı Sistemleri provides to the sector.

Investment and Continuous Improvement Activities

With the investments made in 2024, the company's infrastructure was also strengthened. The settlement process of the new storage facility with a size of 5,000 m² in the Kapaklı Karaağaç region of Tekirdağ has been completed. Investments in the plastics production division presented a significant opportunity to increase production capacity. With a new plastic injection molding machine, the ultrasonic crushing machine has made the production processes faster and more efficient.

In the production of clamps, new automatic production machines, designed in the R&D unit, were commissioned in order to increase production speed and quality. In addition, the 100% vision inspection systems integrated into the production line have taken quality control to the highest level.

More than 60 improvements in the Canias ERP program have been an important step towards increasing the overall efficiency of the company. Improvements in areas such as cost, maintenance and EDI integration have enabled operational processes to be managed more effectively.

2025 Goals

ARMA Ba ğ lant ı Sistemleri aims to increase its turnover by 10% and increase its export rate to 55% in 2025, when growth and sustainability targets will come to the fore. In line with this goal, investments will be made for new projects and innovative product solutions will be developed.

In particular, automatic production line investments will be at the forefront. In the clamp section, two new automatic forming machines, which will be produced by the design of the R&D unit, will further improve the production speed and quality. The plastic injection machine investment to be added to the machine park will alow new projects to be implemented.

Sustainability efforts will continue at the same pace and economic, social and environmental responsibilities will be fulfilled. In the same context, I-REC International Renewable Energy certificate will be obtained. In addition, line balancing projects to be carried out in production and R&D units will increase efficiency and further improve operational processes. Important steps will be taken towards digitalization and manual processes will be transferred to the digital platform and integrated solutions will be developed with the Canias ERP program.

Norm Coating Expands Coating Capabilities

Norm Coating, a global leader in advanced coating solutions with over 25 years of industry expertise, has launched new high-capacity cataphoresis and powder coating lines at its Sakarya facility. Focused on meeting the evolving needs of the automotive, home appliances, electronics, furniture, construction, and machinery sectors, the company continues to advance its technology to serve OEMs and Tier 1 suppliers more effectively.

Norm Coating’s new cataphoresis line offers an annual capacity of 3 million square meters, delivering exceptional corrosion protection for the cast, sheet metal, and aluminum components. The system uses IoTdriven automation for real-time furnace temperature adjustments, optimizing energy usage and coating quality. With 20+ cubic meter tank volumes, the line accommodates large automotive parts (up to 3,300 mm x 1,500 mm) and is perfect for high-durability components such as chassis, suspension, and structural parts.

Dr. FastenerCoating Thickness

Most fasteners get plated or coated. Employing a plating or coating is usually to gain corrosion protection although some users choose finishes for other reasons such as appearance, identification, and friction modification. Typically applying these finishes are either the last or one of the last manufacturing steps in producing the part. For this reason, manufacturers must be very deliberate in this process step to make sure that they do not change the part in a way that would render the part out of specification. Thus, carefully controlling the thickness of the plating or coating is important. These next questions to Dr. Fastener explain the importance of controlling the plating and coating thickness and explore how it is measured and verified.

How do Plating or Coatings Dimensionally Influence Fasteners?

Although we plate or coat parts for a variety of reasons, primarily to protect parts from oxidation, the application of these protective finishes is not without effect on the fastener. In fact, speaking simplistically, most plating and coatings have some thickness, so that application onto the fastener makes the fastener get bigger.

Specifically, What Dimensions are Changed?

In reality, all dimensions covered by the plating or coating are subject to grow. However, on threaded fasteners the Pitch Diameter is critical in determining how the external and internal threads fit together. Because the thread geometry adds some complexity to the equation we find that on a 60° thread, the Pitch Diameter grows by four times (4x) the plating thickness.

Why is That Relationship Important?

Understanding that the Pitch Diameter grows by four times the plating thickness is very important because it is a strong determining factor in whether a part fits loosely, tightly, or not at all. In other words, if a coating is very thick, like paint might be, the Pitch Diameter will grow significantly and might prevent mating parts from fitting together. Conversely, if a part only receives a thin finish, like a flash zinc plating, the Pitch Diameter will not grow much and the fit might be loose.

What is “Throw”?

Another important surface finishing concept is “throw”. Throw is the term used to describe the ability of a plating or coating to deposit in recesses. In other words, a finish with good throwing capability will uniformly deposit itself in a hole or recess, while a finish with poor throwing capability may only be able to cover the upper portion of the recess, leaving the depths of the recessed areas uncoated.

Copyright owned by Fastener World

Article by Laurence Claus

What is the “Dog Bone” Effect?

There are many factors that effect the efficiency and consistency of electroplating. One of those factors is the principle of electric current density. A metal part that is to receive an electroplating will exhibit variation throughout the part in the amount of electric current flowing through a given area. Examining that more closely, it means that an electrical current will flow differently through a fastener. In fact, the electric current density is higher at the ends than in the middle of a typical fastener part. This results in the plating depositing quicker and more efficiently at the ends than in the middle. The outcome, therefore, is a fastener with more plating at the ends, resembling a bone. Thus, the reason this is known as the “dog bone” effect. For fasteners, the implication of this is that threads are almost always on one end of the part, so that a thicker deposit of plating on the threaded end can result in thread fit issues. This is particularly true of externally threaded bolts and screws that possess a long and skinny aspect ratio.

What are Other Implications of Plating and Coating Thickness?

Plating and coating’s primary purpose is to protect the base fastener from corrosion and oxidation. Today’s plating and coatings are normally multi-element systems, meaning that they have several different elements working together as a system to protect the part. Take for example a typical zinc plated fastener, that system is comprised of an electroplated layer of zinc, a chromate conversion layer, and a sealer. These three separate elements work together to protect the fastener. The thicker the plating or coating layer, the longer it protects the part.

Why do We Measure Plating or Coating Thickness?

Since the thickness of the plating or coating layer is usually an effective indicator of protection as well as how the threads will fit together, it is a characteristic that many manufacturers or users will want to verify and control it.

How is the Plating or Coating Thickness Measured?

There are several methods that can be employed to measure the plating and coating thickness:

• Cross section: One of the most accurate methods of obtaining the plating or coating thickness is to section the part and measure the actual plating or coating thickness under magnification. Although this method can be extremely accurate, it is also quite time consuming and requires specialized equipment that can view the part under high magnification.

• X-ray Fluorescence (XRF): XRF excites the sample with X-rays that cause it to emit other x-rays that can be analyzed to determine thickness and composition of certain plating or coatings.

• X-ray Diffraction (XRD): Although XRD is more commonly used to study the crystalline structure of some platings (such as the zinc-alloy coatings), it can be employed to provide thickness details as well.

• Eddy Current and Eddy-Mag: These methods are commonly used by fastener labs to verify plating thickness. They use reference samples to distinguish a reference to evaluate parts against.

Water Resource Management

To address water scarcity through a long-term approach, the Taiwanese government, in accordance with Article 84-1 of the Water Act, has begun levying a "water consumption fee" starting in 2023. For major water users with a monthly water consumption exceeding 9,000 cubic meters, an additional fee of NT$3 per cubic meter is imposed on groundwater users. For nongroundwater users, the first 9,000 cubic meters are exempt, and then NT$3 per cubic meter is added. This fee will be incorporated into the Water Resources Operation Fund under the Taiwanese authorities, earmarked for water resource management, recycled water development, and water conservation promotion to foster sustainable use of water resources.

As mentioned in Part 1 of this article, Taiwan's fastener industry is apprehensive about water scarcity. The question is— how can businesses use each drop of water five times over to safely navigate water shortages? The most effective system in the world is the ISO 46001:2019 (Water Efficiency Management System), which employs a systematic management structure and direction to regularly review and evaluate a company's water efficiency based on the Deming Cycle (PDCA Cycle) to identify and implement opportunities for improvement. Companies can use the ISO 46001:2019 management system to establish water performance goals, action plans, performance indicators and benchmarks, monitoring and analysis, regular review and audit mechanisms to achieve effective water resource management and improve water use efficiency and reduce costs through reduction, substitution, or reuse. The standard is applicable to any type of business, with the expectation of achieving the following three water-saving effects:

(1) Achieve effective water use through reduction, substitution, or reuse. Reduction includes using water-saving devices, such as installing water consumption monitoring systems (water meters) or leak detection systems. Substitution includes replacing tap water with seawater, rainwater, or recycled water. Reuse includes recycling "gray water" (water discharged from washing) and wastewater.

(2) Set effective water efficiency goals and establish, implement, and maintain water-efficient manufacturing processes.

(3) Continuously improve and enhance water efficiency goals.

The ISO 46001:2019 standard adopts the High Level Structure (HLS) of ISO management system standards, comprising 10 sections, as summarized in Table 1. The main content of the standard is not complicated. The primary specifications are detailed in the appendix guide, which is divided into three parts: Appendix A, Guidance on the use of this standard; Appendix B, Examples of water efficiency scenarios; and Appendix C, Guidance on the preparation of water balance diagrams. Refer to Table 2 for the ISO 46001:2019 Appendix Guide.

▼ Table 1: List of Sections in ISO 46001:2019

Chapter 1 Scope Chapter 6 Planning

Chapter 2

Chapter 3 Terms and Definitions Chapter 8

Chapter 4

Chapter 5

Appendix A: Guidance on the use of this standard

A.1 General

A.2 Understanding the organization and its context

A.3 Identification and engagement of stakeholders

A.4 Leadership and commitment

A.5 Policy

A.6 Organizational roles, responsibilities, and authorities

A.7 Planning for water efficiency management

A.8 Support

A.9 Documented information

A.10 Planning and control of operations

A.11 Procurement of water services, products, equipment, and water use

A.12 Monitoring, measurement, analysis, and evaluation

A.13 Internal audit of water efficiency management system

A.14 Management review

A.15 Non-conformities and corrective actions

Appendix B: Examples of water efficiency scenarios

B.1 Case 1 Best Manufacturing Process

B.2 Case 2 Isolated reduction of pollutant load

B.3 Case 3 Recycled water process

B.4 Case 4 Non-water process cycle

B.5 Case 5 Use of alternative water

B.6 Case 6 Use of water-saving accessories, devices, appliances, and products

B.7 Case 7 Optimization of cooling tower operation

Appendix C: Guidance on the preparation of water balance diagrams

Appendix D: Examples of business activity indicators

In 2019, the International Organization for Standardization (ISO) released ISO 46001:2019, "Water Efficiency Management Systems— Requirements with Guidance for Use," a global international standard specifically for water resource management. This standard, based on Singapore's national standard SS 577:2012 (the world's first water management standard), aims to help organizations of all types improve water efficiency and achieve the goals of minimizing water use and maximizing efficiency through a continuously improving management system. ISO 46001:2019 has a broad scope of application, covering non-residential water users such as manufacturing, commerce, office buildings, government agencies, schools, and hotels. Organizations can use this standard to establish a water resource management framework (as shown in Figure 1), develop specific action plans and implementation schedules through strategies such as reviewing water use methods, examining water consumption, and recycling washing water to ensure effective water resource management.

Amid the global ESG (Environmental, Social, and Governance) trend, companies are required to strengthen environmental sustainability management, and water resource management has become an important disclosure item in ESG reports. ISO 46001:2019 can not only enhance a company's environmental image but also improve operational efficiency, reduce costs in using water resource, and align with global sustainability development.

▲ Figure 1: Water Resource Management System Framework in ISO 46001:2019

Taiwan CSC has already made many efforts in the practical management of water resources. According to the article "Taiwan CSC Increases the Proportion of Reclaimed Water Use to Put Corporate Social Responsibility into Practice," the company's internal circulating water can be used 5 to 6 times at each level, and the recovery rate of process water is as high as 98.5%. In addition to conserving water, Taiwan CSC is also proactively promoting a diversified water source strategy, with a daily reclaimed water usage of approximately 60,500 tons. Taiwan CSC has stated implementing the reclaimed water substitution project for Ho-fa Industrial Park in Kaohsiung City (Southern Taiwan), further increasing the daily plantwide reclaimed water usage to 70,200 tons, accounting for as much as 59% of the current daily supplementary water consumption. This not only strengthens Taiwan CSC's resilience in water usage but also increases Taiwan Water Corporation’s flexibility in allocating support for domestic residential water use, fulfilling the corporate social responsibility in ESG. With reference to the water resource recovery systems of globally renowned companies, recycled water is divided into three types: tap water, pure water, and secondary water, as described below:

(1) Tap Water:

1-1. Pure Water Backwash Wastewater Recovery System: A recovery system used to recover and reuse the backwash wastewater produced by pure water equipment (such as RO reverse osmosis systems, EDI electro-deionization systems). The main purpose is to reduce water waste, improve water use efficiency, and reduce discharge costs.

1-2. Air Conditioning Condensate Recovery System: A system that collects, treats, and reuses condensate generated during air conditioning. This will help save water resources, reduce water costs, and reduce wastewater discharge, meeting environmental protection requirements.

1-3. Rainwater Recovery System: A system that collects, treats, and reuses rainwater, designed to reduce tap water consumption and drainage pressure, and improve water resource utilization.

(2) Pure Water:

2-1. Pure Water Recovery System: A system that recovers, treats, and reuses pure water generated during industrial or commercial production processes. This system can effectively reduce water costs and wastewater discharge, and improve water resource utilization.

2-2. Analyzer’s Drainage Water Recovery: Analyzers (such as chemical analyzers, medical testing instruments, and laboratory pure water systems) generate a certain amount of wastewater during operation. This drainage usually comes from cleaning, reagent rinsing, or pure water system discharge and contains small amounts of impurities, but the water is still relatively pure. A system to collect, treat, and reuse this water can effectively reduce water costs and wastewater discharge, and improve water resource utilization.

(3) Secondary Water:

3-1. Scrubber Wastewater Recovery System: Scrubbers are used to treat industrial waste gas by spraying water or chemical solutions to absorb pollutants such as acid mist, alkaline gases, dust, and volatile organic compounds (VOCs). However, the scrubbing process generates wastewater containing suspended

solids and chemical pollutants. Direct discharge would increase environmental treatment costs and may affect the environment. A scrubber wastewater recovery system aims to recover and treat this wastewater so that it can be recycled, or discharged when meeting the requirements, reducing water waste and pollution.

3-2. Acidic and Alkaline Wastewater Recovery System: An acid and alkaline wastewater recovery system is for recovering, treating, and reusing acidic or alkaline wastewater generated during industrial production. The main purpose of this system is to neutralize wastewater, remove pollutants, and bring the water quality up to the standard for reuse or compliant discharge, reducing environmental pollution and lowering the company's water treatment costs.

The 2024 COP29 conference and the California wildfires in early 2025 once again warn us that the threat from climate change is intensifying. This is not just a local crisis but an epitome of global extreme climate challenges. Although Taiwan is surrounded by the sea, it is not a land abundant in water resources. Recent drought crises have highlighted the importance of water resource management. From the once-in-a-hundred-year drought in 2021 to the uneven temporal and spatial distribution of rainfall in 2024, the Taiwanese government and businesses must face the challenge of water scarcity and take more proactive water-saving measures.

The ISO 46001:2019 water resource management system provides a systematic water resource management framework. Through reduction, substitution, and reuse, companies can effectively improve water use efficiency, reduce costs, and reduce environmental impact. For example, Taiwan CSC has taken the lead in implementing water resource recovery and reuse strategies, significantly improving water resource use efficiency, and providing a valuable reference case for Taiwan's fastener industry and other manufacturing industries.

In the face of extreme climate and water resource challenges, companies should take active measures, from strategic planning and the application of water-saving technologies to management mechanisms, in order to comprehensively improve water resource management capabilities and ensure that companies can maintain stable development under the impact of climate change. Only through efficient management and the implementation of sustainable operations can we gain a firm foothold in the severe climate environment of the future.

Copyright owned by Fastener World / Article by Wayne Sung

Outspoken About Wedge Locking Washers and Junker Test

Copyright owned by Fastener World / Article by Ing. Jozef Dominik, PhD (SK) & Prof. Ing. Bohus Bruzek, PhD (GE)

Loosened nuts and bolts during operation have been a problem since their invention. Wedge Locking Washers are currently considered in professional circles to be one of the most reliable locking system for bolted joints. In this sense, they are presented not only by manufacturers, but also by distributors. They gained their popularity mainly after the spread of the so-called Junker vibration test, which is used to check the reliability of locking systems. This vibration test, according to DIN 65151, is considered the most severe vibration test for bolted connections. To testify to the complete properties of this locking method and to help designers is the task of this contribution. It is important to note that the article is of a strictly technical nature and has no ambition to interfere with the distribution network.

Wedge Locking Washer Design and Properties

Wedge locking washers (WLW) are two in a pair together glued washers with external ribbing and internal wedge surfaces (Fig. 1). The wedge-locking method is based on tension instead of friction. A typical bolted joint assembly with WLW application is shown in Fig. 2 . According to the manufacturer's recommendation, a pair of wedge washers should be in the case of nut connections installed under the bolt head as well as under the nut. The pair of washers use cam-geometry. Any attempt from the bolt/nut to rotate loose should be blocked by the wedge effect of the cams.

Considering that WLWs belong to the group of locking elements whose locking effect depends on the preload of the bolted joint pA → f(FM) (Fig. 3), the existence of up to 7 interfaces (Fig. 2) is unpleasant. Fig. 2 also shows that by installing two pairs of WLW, the clamping length of the joint increases by 2x h.

2. Bolted joint assembly with WLW application

3. Various locking parts

Depending on the roughness of the surface and the hardness of the steel, each interface manifests itself in material settling. The rougher the surface of the material and the greater the number of interfaces, the more significant the resulting settlement value and the decrease in preload. It is also proven by the Junker test in Fig. 4. From this figure it is clear that only one washer, i.e. not a pair, causes a lower settling value while still showing the same locking effect. However, this fact needs to be examined more closely, as it may also depend on the strength of the material of the parts being joined.

Fig.

Fig.

Fig. 1. α ＞ ß, (ß - thread pitch angle)

Fig. 4. Junker test

Stress Analysis of Bolting Joints

It was already stated at the beginning that wedge locking washers are considered in professional circles to be one of the most reliable locking system for bolted joints. This is also proven by Fig. 4. But is it true in every case? The answer to this question requires a more detailed analysis. First, the known shortened quote from C.O. Bauer:

For each type of bolting stress, another locking “dress”!

This bolting axiom is based on the principle that during operation, screw joints are exposed to mainly two various mechanical effects (Fig. 5, 6 and 7). This serious fact cannot be disputed, but is fully respected. This also applies to the choice of the relevant locking of screw joints and their vibration testing methods.

Vibrations Testing

The different locking effect of WLW at different stresses is clearly documented in Fig. 8a with an associated Fig. 8b

These pictures show that wedge locking washers were the best at resisting transverse vibrations, moderately resistant to axial vibrations loading, and according to Hard Lock Technical Report, 2007, vol. 2, completely failed when NAS 3354 was applied.

The Junker vibrations test (Fig. 9) itself gradually gained such popularity that the DIN 65151 standard was assigned to it. This has earned it the credit of a generally valid standard for any type of stress. However, such a function belongs to it wrongly, because it does not respect the different stress conditions of bolted joints (s. Dominik, J.: Polemic About Junker Test Standard, Hardware & Fastener Components No. 62, May 2024). For that reason, there should be a revision of the standard in the sense that only transverse dynamic load applies.

Fig. 9. Junker vibrations test

Fig. 5. Dynamic stressing

Fig. 6 Axial dynamic loading Fig. 7 Transverse dynamic stressing

Fig. 8b. Various methods

Fig. 8a. Locking effect of WLW

It is obvious that the hook on the wagon ( Fig. 10 ) is subjected to tensile cyclic stress and an axial pulsator must be used to test the strength bolts that secure it (Fig. 11). The Junker test would not be objective.

Alternative Solutions

It must be objectively admitted that for the given type of stress, WLW is a good option. However, the locking effect is not the only criterion for its selection. Here are the next:

Price, Logistic (number of parts), Assembly difficulty, Repeatability, Number of interfaces, Ability to seal, Damage of contact surface

Therefore, it does not hurt to remember some other options for securing screw joints. The current market offers a wide choice of external locking elements. Among the many options, at least flange nuts with ribs (Fig. 12) should be mentioned (there are also similar head screws with an integrated ribbed flange). The benefits would be at hand: fewer interfaces, simpler logistics, easy assembly, safe for use in food machinery from a health point of view.

Conclusion

The article uncompromisingly confirmed the truth of C. O. Bauer that there is no universal type of bolting that would be equally effective for all types of stress. It should be added that there is also no universal method of testing the resistance of threaded bolting to vibration. For designers, this is a clear signal for the individual choice of method for securing bolted joints against spontaneous loosening. Of course, this only applies to cases that require external securing. The basic prerequisite for this is a thorough knowledge of the conditions (type of stress, aggressiveness of the environment, etc.) under which the future construction will operate.

Fig. 10. Hook on a wagon

Fig. 11. Strength bolt test

Fig. 12. Flange nut with ribs

Trump's Policy Impact on Taiwan's Fastener Industry in the U.S. Market (Part 2) Operating Strategies

Overview of Trump’s Reciprocal Tariff

To promote the “America First” agenda, U.S. President Donald Trump announced in February 2025 an updated Section 232 list for steel and aluminum, which, in addition to the original raw materials, newly includes 24 fastener products (HS codes 7316–7318). Subsequently, on April 3, Trump continued to announce a 10% “baseline tariff” on all products imported into the United States, and imposed even higher “reciprocal tariffs” on certain countries. Only some products are included on the exemption list for reciprocal tariffs, such as steel (including fasteners) and aluminum products already subject to the 25% Section 232 tariff, automobiles, products that meet USMCA (United States-Mexico-Canada Agreement) rules of origin, as well as copper, pharmaceuticals, semiconductors, wood products, certain critical minerals, energy and energy products. Later, on April 11, the U.S. further announced a 90-day postponement of reciprocal tariffs for more than 75 countries, during which a 10% reciprocal tariff would be temporarily levied. It is estimated that the U.S. intends to use this 90-day buffer period to negotiate with various countries to achieve the most favorable terms for American interests. As the negotiation scenarios and outcomes differ from country to country, this study bases its analysis on the reciprocal tariff scenario as of April 9.

Analyzing the Impact of U.S. Tariffs on Taiwan’s Fastener Exports and Tariff-covered Products

Analysis of Taiwan’s Global Fastener Export Share by Weight and Value

Table 1 compares Taiwan’s global fastener exports during Trump 1.0 and 2.0. The total global export value decreased from USD 4.64 billion in 2018 to USD 4.37 billion in 2024, a drop of about 5.8%. Export weight fell from 1.596 million tons to 1.25 million tons, a decrease of approximately 21.7%. The average global export price rose from USD 2.54/kg to USD 3.49/kg. Given the order shifts resulting from the U.S.-China trade war, Taiwan’s export share to the U.S. market increased significantly (from 38.4% to 53.0%), indicating a higher target focus in the U.S. market. Despite the decline in export weight, the unit price of exports to the U.S. rose by 20.3% (from USD 2.91/kg in 2018 to USD 3.50/kg in 2024), suggesting an upgrade in the product mix or a shift to higher value-added products for the U.S. market. In Europe, the market performance was mixed: markets such as Italy and Sweden saw slight growth, while markets like Germany and the UK experienced minor contractions.

Analysis of Taiwanese Fasteners Under Tariff Impact

Taiwan’s fastener industry is primarily domestic production based, but in recent years, in response to geopolitical shifts and customer demands, Taiwanese companies have actively established factories in Thailand and Vietnam to strengthen their global supply chain deployment. According to Table 2, which presents the 2024 breakdown of Taiwan’s fastener exports to the U.S. by product category and a tariff cost simulation, all of Taiwan’s fastener products listed fall under the scope of the additional 25% tariff imposed under Section 232 for steel and aluminum. Taiwan’s main export products to the U.S. are steel self-tapping screws (USD 964 million), steel screws and bolts (USD 662 million), and steel nuts (USD 496 million), which together account for 90% of total exports. In terms of tariff impact, the additional 25% tariff has increased the industry’s total costs by USD 579 million, with the greatest effect on three high-value products. This may weaken the price competitiveness of Taiwan’s lower-priced standard fasteners in the global market. If tariffs increase further or demand declines, Taiwan’s fastener export could be even more adversely affected.

Table 2. 2024 breakdown of Taiwan’s fastener exports to the U.S. by product category with tariff cost simulation

Analysis of Global Fastener Exports to the U.S. and Supply Chain Restructuring

Major U.S. Import Sources and Overall Competitiveness

Table 3 presents an analysis of the major U.S. fastener import sources and Taiwan’s potential competitors for 2024. In 2024, the U.S. imported a total of USD 7.055 billion worth of fasteners, with a total import weight of 1.754 million tons and an average import price of USD 4.02 per kilogram. The top 15 import sources accounted for 95.13% (USD 6.711 billion) of the total import value and 96.40% (1.691 million tons) of the total import weight, indicating that the market is highly concentrated among the main suppliers. Notably, Taiwan ranked as the top source of U.S. fastener imports, with an import value of USD 2.315 billion (32.8% share) and an import weight of 601,000 tons (34.3% share), highlighting Taiwan’s pivotal role in the U.S. market. However, starting in 2025, most countries face a 25% reciprocal tariff imposed by the U.S. After this tariff, Taiwan’s unit price rises by 25%, from USD 3.85/kg to USD 4.82/kg, but this is still lower than those of Japan, Canada, Germany, and South Korea. This shows that Taiwan’s fastener products are differentiated from China’s lowprice strategy and Europe’s ultra-high price strategy, enabling Taiwan to maintain solid competitiveness in the short term. In terms of product segmentation, in the mid-to-high-end market, products from Japan and South Korea partially overlap with Taiwan’s, but their

Table 1. Comparison of Taiwan’s global fastener exports during Trump 1.0 and 2.0

import weights are relatively low and pose limited threat. In the low-end fastener market, India and Vietnam employ low-price strategies, giving them competitiveness in labor-intensive or low value-added products, which could gradually erode Taiwan’s share in the low-end market over the long term.

Table 3. Major U.S. Fastener Import Sources and Taiwan’s Potential Competitors for 2024

Analysis of Order-Shifting After Supply Chain Restructuring

֎ Estimated China’s Share in the U.S. Market

Apart from the high tariffs imposed by the U.S. on Chinese fastener products, all of Taiwan’s other major competitors face a uniform 25% tariff baseline. As a result, Chinese fastener products will face a price disadvantage of over 35%. Most of China’s fastener exports to the U.S. are low-margin standard products, making it difficult to absorb these higher costs. This will erode China’s price competitiveness and lead to a continued decline in its market share, especially in the OEM fastener segment, where it could lose more than 80% of orders. U.S. buyers are expected to continue shifting orders to countries with lower tariffs or outside the “Chinese Supply Chain.” For estimating the volume of orders released by China, historical data in relation to the impact of the 25% Section 301 tariffs in 2018 show that China’s fastener exports to the U.S. declined at a compound annual growth rate of 3.3% in value and 3.5% in weight over six years. Based on this, the additional 25% Section 232 tariff in 2025 is expected to cause China’s fastener products to lose an additional 3% of market share

annually. Including the original annual decline of 3.3%, the total annual decline is projected at about 5.0%, equating to declining roughly USD 66 million in value and 28,300 tons in weight each year.

֎ Projected Shifts in U.S. Market Share

(1)High-end fasteners: The implementation of reciprocal tariffs by the U.S. is encouraging manufacturing reshoring and increased investment in high-tech sectors (such as semiconductors, AI, and defense). Demand for high-end fasteners from Germany, Japan, and Italy is expected to remain stable or grow slightly. Aside from a small number of special fasteners (for automotive and aerospace) that may continue to be sourced from China, most high-end fastener orders are expected to be redirected to Taiwan, with a smaller portion going to other competitors in the Americas (such as to Canada), where export unit prices are higher.

(2)Low-End Fasteners: In the short term, Taiwan will continue to benefit from order shifts in the low-end fastener segment. However, Taiwan’s after-tax unit price of USD 4.82/kg slightly dilutes this benefit. Over the long term, some low-end fastener orders are likely to be redirected to Mexico, which can supply the U.S. market more efficiently through expanded local production and fill up the gap in the U.S. demand for steel fasteners. Mexican factories enjoy tarifffree access to the U.S. under the USMCA, so Mexico’s market share is

expected to grow. Nevertheless, in the short term, the current Asia-centric supply structure is unlikely to be fundamentally disrupted.

֎ Changes in Non-U.S. Market Share

(1) High-end fasteners: It is estimated that most of the highend fasteners originally exported from China to the U.S. will be redirected to Taiwan, with a smaller portion redirected to other competitors in the Americas (such as non-U.S. countries with higher export unit prices like Japan, Germany, and South Korea). However, given the high transportation costs, the value and weight redirected to European and American competitors is expected to be even lower.

(2) Mid- and low-end standard fasteners: After China faces an additional 70% tariff, its product unit price rises to USD 3.97/ kg. Compared to other potential competitors with cost advantages after tariffs— namely, India (USD3.42/kg), Vietnam (USD3.38/ kg), and Thailand (USD4.58/kg)—China still retains some advantage. India and Vietnam are projected to be promising alternative sources. However, considering the production capacity, quality, cost, and shipping lead times, U.S. customers may need time to adapt to sourcing from India and Vietnam. In the short term, urgent orders for low-end fasteners are still expected to shift to Taiwan. In the long term, China is likely to increasingly use third-country processing and re-export trade outside the U.S. market, re-declaring the country of origin to reduce tariff impact. The probability of shifting orders to the U.S. via the Middle East or Africa is low due to high shipping costs.

Current Status and Demand in the U.S.

Fastener Industry

֎ The U.S. fastener industry and supply chain: The U.S. is the world’s largest importer of fasteners, with imports reaching about USD 7.055 billion in 2024, making it the largest end-user market globally. Major demand sectors include automotive, construction, aerospace, defense, and machinery manufacturing. With manufacturing reshoring and the implementation of infrastructure bills, fastener demand continues to grow steadily. The supply chain remains heavily reliant on imports (mainly from Asia: Taiwan, China, Japan), with a strong emphasis on delivery times, quality, compliance with technical specifications, and environmental standards.

֎ U.S. Fastener Demand by Industry Sector

(1) Automotive: Taking the largest share, especially for chassis, body, and motor structure fasteners in both internal combustion and electric vehicles.

(2) Construction and Civil Engineering: Large-scale use of steel and concrete-specific fasteners in residential, commercial, and infrastructure projects.

(3) Aerospace: Steady growth in demand for high-strength, heat-resistant metal fasteners (e.g., titanium alloys).

(4) Defense, Energy, and Machinery: U.S. defense industry operations and energy transition policies drive increased demand.

֎ Industry Drivers

(1) Infrastructure Investment: The 2021 Infrastructure Investment and Jobs Act (IIJA) is set to inject USD 1.2 trillion, boosting demand for heavy-duty fasteners in construction, bridges, and railways.

(2) Automotive Electrification: The future development of U.S. electric vehicles requires fasteners that are lightweight, corrosion-resistant, and lowmagnetic, driving demand for aluminum, stainless steel, and composite fasteners.

(3) Domestic Manufacturing and Supply Chain Restructuring: Reshoring and “Buy American” policies are reviving domestic factories, expanding demand for mid- and high-end fasteners, especially in aerospace, EVs, and precision machinery, which drive demand for composites and specialty fasteners.

(4) Environmental Trends: The introduction of ESG into supply chain management means buyers are more stringent about suppliers’ carbon transparency and sustainability policies.

(5) Rapid Delivery and Flexible Supply: Competitive advantage depends on diversified layouts, local warehousing, and just-in-time delivery services.

Conclusion

Under the new U.S. tariff measures, large Taiwanese fastener companies are expected to experience relatively minor impacts. This is especially true for suppliers of high-end fasteners, who possess strong bargaining power with international distributors and therefore face less pressure from

increased tariff costs, making their profitability less of a concern. Major standard fastener enterprises, which control about 60% of U.S. distribution channels, can pass on higher costs to consumers, maintaining market dominance and pricing flexibility. In contrast, small and medium-sized fastener firms face greater challenges. Medium and small fastener manufacturers that export to the U.S. through non-Taiwanese channels have limited ability to pass on costs, resulting in squeezed profit margins. However, with Chinese fasteners subject to much higher tariffs, there remain opportunities for Taiwanese companies to capture redirected orders. There are several strategies to respond to the U.S. tariff situation: First, strengthen the positioning of products in the mid- to high-end segment, focusing on technology-intensive, high valueadded products to compete with Japan and South Korea, while avoiding direct competition with low-cost suppliers from China, India, and Vietnam. Second, closely monitor changes in tariff policies. As the U.S. imposes high tariffs on Chinese products and reshapes the global fastener market, companies should pay attention to trade policy developments and work with the government to secure the most favorable tariff arrangements. Third, enhance cost competitiveness. In the face of low-price competition from India and Vietnam, companies should improve production efficiency or shift toward higher-value products to reduce reliance on the low-end market. Fourth, integrate domestic screw manufacturers to establish distribution centers, making it easier for global buyers to source products and allowing for flexible inventory adjustments. Fifth, expand into new market segments. As non-U.S. markets become the main battleground in the future, companies should continue to transform and reduce dependence on the U.S. market. Targeting countries such as Canada and Germany, which have high unit prices but low import volumes, by developing high-value products will be a key response strategy.

Copyright owned by Fastener World / Article by Dr. Arthur Hsu Source: ITC

Positioning Taiwan as the Best Strategic Partner for U.S.

Reindustrialization

On March 19, 2025, the Kaohsiung Office of Taiwan’s Bureau of Foreign Trade hosted a seminar that attracted over a hundred participants from diverse industries and age groups. The event focused on the impact of Trump’s latest policies on Taiwan and China. Ms. Lu Hui-Chu, Director of the Kaohsiung Office of the Bureau, stated in her opening remarks that while Taiwan benefited during Trump’s first term, it now faces challenges from U.S. tariffs alongside other nations under Trump’s second term. To support Taiwanese firms in overseas deployment, she said the Ministry of Economic Affairs has prioritized markets such as the U.S., Germany, the Philippines, and Japan, with efforts including establishing industrial parks to build full supply chains, setting up trade service centers in the U.S., and forming service group in the U.S., Canada and Southeast Asia to assist Taiwanese firms looking to invest but pressured by the impact of tariffs.

The keynote speaker, Vice President Mr. Wang Jiann-Chyuan of the ChungHua Institution for Economic Research (Taiwan), was invited to addressed four topics: the impact of Trump’s latest policies on Taiwanese industries and corporate running; geopolitical shifts and China’s economic decline; global and Taiwanese economic outlooks; strategies for coping and investment. The following outlines his talk, breaking down into four aspects.

◆ U.S. Economy Outlook: Short-term Gain but Long-term Pain

Trump’s tariffs will drive up consumer prices and the dollar exchange rate has begun to weaken. Debt levels are rising. High-income consumers earning USD 100,000 annually have started to cut back on luxury spending, favoring affordable and essential daily supplies instead. The U.S. economic growth rate is projected to drop from 2.72% last year to 1.91% this year. These phenomena have led to increasing concerns about an impending recession of the U.S. economy.

▲ Mr. Wang Jiann-Chyuan

◆ Relatively Less Impact on Taiwan’s Fasteners & Hand Tools, While China Shock 2.0 Poses a Bigger Challenge

Taiwan's overseas investment focus has shifted from China to the U.S., with the proportion of export to the U.S. doubling from 13% to 25% over the five years from Trump’s first to second term. Last year, Taiwan recorded a trade surplus of USD 73.9 billion with the United States, making it the sixth-largest contributor to the U.S. trade deficit. This trade imbalance provided Trump with sufficient justification to impose tariffs targeting specific Taiwanese industries.

Taiwan is the fifth-largest exporter of steel to the United States. The 25% tariffs imposed by Trump on steel and aluminum industries has a more significant impact on Taiwan's conventional industries, including steel and aluminum, compared to its technology sector, which is protected under the Information Technology Agreement (ITA). However, Wang Jiann-Chyuan assessed that the impact of tariffs on Taiwan’s fastener and hand tool industries is relatively lower because U.S. manufacturers find it less cost-effective to produce these items domestically and will continue to import from Taiwan.

Although Taiwan's fastener and hand tool industries are relatively less impacted by the tariffs, they will face intense competition from China. This situation mirrors the "China Shock 1.0" experienced back in 2002 when Taiwan and China both joined the WTO. At that time, China's advantages in labor costs and low taxes caused the U.S. to lose over 2 million jobs in industries like textiles, apparel, and toys. Fast-forwarding

to 2025, with weak domestic demand and a collapsing real estate market, China is focusing heavily on exports, leading to overproduction in nearly all sectors. This has resulted in aggressive dumping of Chinese products like steel, cement, EVs, and solar panels into global markets—a phenomenon referred to as "China Shock 2.0." Taiwanese and Chinese suppliers will be competing fiercely in third-country markets and this will reflect in industries like fasteners and hand tools. Wang JiannChyuan pointed out that retaining irreplaceable competitiveness is key to surviving this wave of supply chain restructuring, stating metaphorically, "You will know who's swimming naked only when the tide goes out."

Economically, Taiwan maintained an average inflation rate of just 1% over the past 30 years. However, due to rising energy costs that the Taiwanese government can no longer afford, the country’s inflation is now edging closer to 1.5%-2%. Meanwhile, Taiwan's economic growth rate is projected to drop from 4.28% last year to 2.65% this year.

◆ There is at Least a Decade Long of Economic Decline Waiting for China

Compared to Japan with a per capita income of USD 50,000 during its asset price bubble, China's current per capita income stands at only USD 13,000. Additionally, local government debt in China amounts to USD 12 trillion—60% of its GDP which is valued at USD 20 trillion. China's economic growth rate is expected to decline from 4.97% last year to 4.21% this year. Nobel laureate Paul Krugman remarked that while China's economic downturn may not mirror Japan’s 30-year decline, "it could be even worse." Wang Jiann-Chyuan quoted the general consensus of industry players, suggesting that although China might be able to avoid going down as much as Japan, it will likely face a recession lasting at least 10-15 years.

◆ Taiwan Must Diversify Beyond Semiconductors — Propelling Re-transformation of Conventional Industries

Wang Jiann-Chyuan warned that with both the U.S. economy slowing down and China's economy faltering, Taiwanese businesses must brace for impact as conventional industries face multiple high-risk challenges. He is illustrating a "Conventional Industry Retransformation" tactic for Taiwan. The strategy is conceptualized as such that despite efforts by Trump to bring manufacturing back to the U.S., there remains a lack of sufficient component suppliers and distribution networks within the U.S. Taiwan has the world’s most complete fastener and automotive component supply chain which makes it literally indispensable for U.S. reindustrialization efforts. He advocated for Taiwan to position itself as the United States’ best partner in reindustrialization by creating Taiwan’s value for the U.S., thereby gaining leverage in trade negotiations with Trump.

To that end, he emphasized that Taiwan’s conventional industries must embrace digitization and cross-sector collaboration. On one hand, fastener companies must accelerate their digital transformation; on the other hand, they need to collaborate with other industry players to form and integrate into a supply chain. In February, a press report stated that, in addition to catering to the automotive market, Spec Products Corp is tapping into the semiconductor equipment sector, supplying anti-loosening screws to major wafer foundry clients — the end clients for semiconductor equipment companies. These screws meet high specifications and have good prices. Although the current sales scale is small, growth has been rapid. This exemplifies collaboration between the fastener industry and other sectors. Through such partnerships, the fastener industry can become part of the massive semiconductor supply chain. By meeting the high standards of the semiconductor industry, Taiwanese fastener companies can up their technical capabilities. Beyond their first transformation (digitalization), they can achieve a second upgrade by venturing into cross-sector collaborations and adopting a team-based strategy.

Therefore, Taiwan cannot rely solely on semiconductors for its future growth. By leveraging the world’s most complete fastener supply chain and fostering collaborations between the fastener industry and high-end sectors like the high-tech industry, Taiwan can elevate product value-add and build an industry cluster that position it as the best partner in U.S. reindustrialization efforts—a strategic move highly beneficial under the "America First" agenda.