NORTH AMERICAN NEWS by John Wolz, editor GlobalFastenerNews.com GLOBALFASTENERNEWS.COM
Survey of the SURVEY OF THE FASTENER INDUSTRY 2011 YEAR END fastener industry 2011 Percentage of Fastener Firms Reporting Higher Sales & ProďŹ t, 1979-2011 SALES
79
80
81
82
83
84
85
86
87
88
89
90
PROFIT
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Percentage ofYear fastener firms reporting and profits 1979 -JUMPS 2011 2011 A Good for Fastener Industry higher sales ECONOMIC CONFIDENCE Increased sales and proďŹ ts were on the menu of fastener companies 2011 a good year in 2011 — and strong helpings of both were served, the End of 2011 FIN
More than one-third of End of 2011 FIN Survey participants Survey found. expressed "high" conďŹ dence in the Increased sales and profits were on the menu of fastener companies in 2011 Nearly eight in ten businesses — 78% — reported "moderate" to North American economy for - and strong helpings of both were served, the End of 2011 FIN Survey found. "strong" sales growth during the year, representing the second straight 2012. In addition, half expressed in ten - 78% - reported And fastener are overwhelmingly optimistic about year of early saleseight growth bybusinesses at least three out of four fastener companies. Ancompanies "moderate" conďŹ dence in the “moderateâ€? to “strongâ€? sales growth during the year, their prospects in 2012. The FIN Survey found nearly eight out even 50% of fastener ďŹ rms said sales grew at a "moderate"ofpace, while domestic economy. representing the second straight year of sales growth ten businesses forecast further sales growth in the coming 28% saw "strong" sales growth. Two years ago nosales FINincreases, Survey by at least three out of four fastener companies. An months. Just under 60% expect “moderateâ€? even 50% fastener firms grew atparticipating a “moderateâ€? pace, while 21% revenue growth. 1% estimated An ofadditional 12%said of sales companies in the survey saidanticipate “strongâ€? participants rated theirOnly conďŹ dence while saw “strongâ€? saleswhile growth. a salesin decline. Profits are expected to improve as well, with 82% sales28% stagnated in 2011, 5% reported a moderate decrease for 2010 as "very high." An additional 12% of companies participating in the survey of survey participants predicting profit gains in 2012, including annual revenues. This profit year rise onlyand 7%21% were said sales stagnated in 2011, while 5% reported a moderate 61% who foresee a “moderateâ€? who anticipate ProďŹ ts were up as well, with 73% of manufacturers, distributors, negative on the economy. decrease in annual revenues. a “strongâ€? increase in profit. importersInand Profits were up as well, with 73% of manufacturers, distributors, 2011platers the FIN Sales Index jumped to 4.3 from 3.8 the A 55% majority expressed importers and platers surveyed by FIN recording profit gains. surveyed previous year. At 4.2 the FIN Profit Index continued GLOBALFASTENERNEWS.COM SALES INDEX by FIN "moderate" conďŹ dence in its therebound 4.5! Just over 49% of companies saw “moderateâ€? profit increases, from 2009’s record low of 2.14. recording proďŹ t global 21% "low" while 24% achieved “strongâ€? profit growth. About two 4.3! in ten For the coming months theeconomy. sales indexAt forecasts growth to gains. 4.5 Justand over ratings of an theincrease international fastener businesses said profit was unchanged from the previous the49% profit index indicates to 4.2. of companies saw year, with an additional 2% showing “moderateâ€? bottom-line declines. marketplace bested 16% with "moderate" proďŹ t "high" conďŹ dence. increases, while 24% achieved "strong" NORTH AMERICAN ECONOMIC INDEX Just over one in two fastener companies participating the End of 2011 FIN Survey proďŹ t in growth. About 3.7! twotheir in tenworkforce fastener in 2010. added jobs in 2011, up from the 40% who increased 3.5! businesses said proďŹ t n a year of widespread sales and profit growth, an additional 24% of businesses did not add workers to their payrolls last year, waslearned unchanged from more with fewer employees. while 19% cut jobs, suggesting that fastener companies have to accomplish 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 While virtually no companies projected job cuts in 2012,the 50% said theyyear, had no plans to hire more workers, despite growing previous confidence in the North American "moderate" economy and bottom-line modest cost projections. with an additional 2% showing declines. And fastener companies are overwhelmingly optimistic about their prospects in 2012. The FIN Survey found nearly eight out of ten businesses — 79% — For a second straight year, fastener manufacturers operated at a higher percent of capacity during 2011. forecast further sales growth in the coming months. Just under 60% Inventory turnovers, finished goods on hand and raw material prices rose from the year before. expect "moderate" sales increases, while 21% anticipate "strong" revenue 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 Manufacturer capacity nearly 10 percentage points to a 73% average during 2011, approaching a level not growth. Onlyoperating 1% estimated a climbed sales decline.
N
Hiring up, but fewer predicted for 2012
I
Factories ramping up for busier 2012
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SALES & PROFITS on next the pageFIN Survey has charted capacity. seen since the late 1990s. The 2009 figure of 59.3% was the lowest incontinued the 17 years
The FIN Survey is informal and not designed to be a scientific survey. Respondents are anonymous. 24 Fastener + Fixing Magazine • Issue 74 March 2012
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