How the Economy Is Affecting the Building Fasteners Industry

A stalled North American economy and gloomy conditions around the world have had an affect on every industry. The building fasteners industry is no exception, but you may be surprised to hear how those trends leave their mark in an industry that supports many others. Residential Construction Housing starts have been down during the first […]

A stalled North American economy and gloomy conditions around the world have had an affect on every industry. The building fasteners industry is no exception, but you may be surprised to hear how those trends leave their mark in an industry that supports many others.

Residential Construction

Housing starts have been down during the first quarter of 2011. As the cost of real estate continues to stay at low levels, new properties are not being bought and new homes are not being built.

There have been more multi-unit residential buildings erected in the opening period of 2011, although that number is still well below the data seen before the recession hit.

Both of these scenarios have a direct affect on the fastener industry. Residential construction is fairly major part of business for many manufacturers and distributors. When fewer homes are being built – of any size – you can expect revenues for fastener firms to shrink. But with multi-unit construction on the rise, the demand for fasteners will also increase.

Industrial Production Levels

Building fasteners are also used in various industrial settings. Recent data shows that industrial production has remained steady over the course of 2011, which means the machinery and robotics will require routine maintenance. Worn or faulty fasteners will need to be replaced, providing a steady source of sales for the distributors and manufacturers.

Expansion and facility repairs cannot be done without building fasteners. Contractors and retailers need to keep up their stock of well used products. And fastener distributors need to provide competitive prices and reasonable delivery times.
The boom seen in 2007 and 2008 is no longer an industry reality. But as the economy moves forward, including steady industrial production and an increase in multi-unit construction, the demand for fasteners continues to be strong.

Research and development propel the industry forward, with advancements in design and platings creating more durable and reliable products. As projects in the construction and industrial sectors make use of these buildings fasteners and discover the advantages the demand will increase, propelling the fastener industry into the future.