Fasteners Industry Analyses

PRODUCT DESCRIPTION 
Fasteners are objects which allow for two or more elements to be ‘joined together’. Their range of application can be categorised as follows: 

• Indirect connection, for which a nail or screw is used, 
• Detachable connection, with screw or bolt and nut, 
• Difficult detachable connection, which can only be loosened by damaging the construction; for example, with blind rivets. 

Fasteners are used in virtually every industry thinkable, varying from the automotive sector (the largest market segment for fasteners) to the sectors of machinery, furniture and construction. When ‘fasteners’ are referred to in this survey, this concerns all the codes in the Harmonised System (HS) in Chapter 7318. 

Material and Design
Fasteners can be made of many different materials, such as steel, stainless steel or iron, brass, copper, aluminium, alloys, exotic materials such as kuprodur and titanium. 
 

FASTENERS INDUSTRY IN THE WORLD

The global industrial fasteners market size was estimated at USD 95.24 billion in 2019 and is anticipated to foresee significant growth in light of its increasing usage in various end-use industries including automotive, machinery and electronics.
With the development of technology and the down trend of raw materials-steel, the global average price of industrial fasteners is in the decreasing trend, from 2359 USD/MT in 2013 to 2141 USD/MT in 2017. With the situation of global economy, prices will be in decreasing trend in the following five years.
Major Fasteners Manufacturing countries are China, Japan, Taiwan, Germany and USA.  APAC (Asia-Pacific Region) is the fasteners market posessing more than 40% of global fasteners sales market.
Major End Users:  Automotive  27% / Construction  26% / Aerospace 18%

Sourced: https://www.beroeinc.com/category-intelligence/fasteners-market/
 

WORLD		2013	2014	2015	2013	2014	2015
		MİLL$	MİLL$	MİLL$	1000TONS	1000TONS	1000TONS
USA	EXPORT	3.612	3.842	3.829
	IMPORT	4.504	4.876	4.985
EU	EXPORT	4.189	4.118	4.207	483	492	468
	IMPORT	4.376	4.947	5.519	1.315	1.558	1.525
JAPAN	EXPORT	2.711	2.738	2.745	349	349	332
	IMPORT	965	1.007	1.025	360	343	324
TAIWAN	EXPORT	3.679	4.048	3.881	1.371	1.501	1.470
	IMPORT	138	144	135	18	21	20
TURKEY	EXPORT	196	236	211	53	63	67
	IMPORT	461	470	482	73	76	74

 

Some Producers 
ITW, Precision Castparts, Alcoa, LISI, NIFCO, and Stanley Black & Decker occupy around 13.6 percent of market share at a global level.
Examples of Big Producers in the Countries are: (annual turnover /2017)

USA………:   Nucor     (20,2 Billion usd)
                      Grainger  (10,4 Billion usd)
                      Simpson  ( 979 Million usd)
                      Hillman    (838 Million usd)
                      (Alcoa, Fastenal, KLX, Trimas etc……..)
Europe……: Bossard     (786 Billion usd)
                      Lisi              (1,65 Billion eur)
                      Bulten          (2,85 Billion eur)
Germany:     Bierbach GmbH, Böllhoff, Max Mothes, Peco Peltzer. 
Italy……….: Agrati Group, Bossong, Sariv, Spinelli Inox, Viteria Euganea, Viteria F Fusani, Viteria 
France…….: Bonioni, ING Fixations, Volvis. 
UK…………..: Allbolts, Apex Stainless, Blakeacre, Cooper & Turner, TRfastenings.
The Netherlands: Bové, Bodegraven, Nedschroef.

FASTENERS INDUSTRY IN TURKEY

PRODUCTION FIGURES IN TURKEY

TURKEY		2013	2014	2015	2017	2018 EST.
TOTAL	1000$	249.521	269.940	284.809	1.118.997	1.032.091
	1000TONS	126	139	141	0	226
IMPORT	1000$	168.910	183.107	190.750	753.359	552.000
	1000TONS	73	76	74		91
EXPORT	1000$	80.538	86.757	93.985	365.638	480.000
	1000TONS	53	63	67		135
EXP/IMP	%	47,7%	47,4%	49,3%	48,5%	87,0%

With 87%  Export to Import ratio, It is clear that Turkish Fasteners Suppliers could close their business to the balance in 2018.

STATISTICS FOR FASTENERS  OF TURKEY
VOLUME OF THE MARKET…………….. 226.000 TONS/YEAR
EXPORT/IMPORT RATE………………….. 87% OF 
RAW MATERIAL SOURCING…………… 90% DOMESTIC PRODUCTION
COMPANY NUMBER……………………… 300
PERSONNEL NUMBER……………………. APPR. 20.000
EXPORT MARKETS………………………….. 177 COUNTRIES
 

Turkey’s Major Fasteners Sectors:
Automotive :

• Turkey ranks first in light commercial vehicle production in Europe.
• Turkey has risen to be the 7th largest automotive producer in Europe and 16th in the World with an annual production capacity for 2 million vehicles.
• In 2016 the Turkish Automotive Industry turned out 1.45 million vehicles, an 7% increase on the previous year, 1.1 million of these for export, with the EU its main market.
• Turkey is a production basefor more than 250 global suppliers in Automotive sector.
• Low level of car ownership in Turkey compared with Europe provides great opportunities for domestic market growth.
• Construction&Infrastructure:
  • -Turkey continues to develop mega projects such as tunnels, metro-subways…
  • - According to the Turkish Contractors Association, by the end of March 2016 Turkish contractors had undertaken 8755 projects in 107 countries with total business volume of USD 325 Billion.
  • -The Government has set targets for expanding the highways and rail networks, including 12.000 km of high speed lines.

Furniture:

• 35000 companies are involved in furniture making with a compound annual growth rate of 9% forecast up to 2020.
• Production capacity is worth more than US$10 billion, with export to more than 170 countries valued at US$2.4 billion
• Already ranked 15^th furniture exporter worldwide and aiming to be in the top 5 by 2023.

Machinery:

• Europe’s 6th largest Machinery manifacturer. 
• Turkey’s second largest Export industry US$ 13.4 billion in 2015.
• More than 9300 manufacturers, export to 200 countries.

Home Aplliances:

• Turkey is the leading European white goods manufacturer, production capacity 25 million units/year.
• Revenue is expected tor ise to US$619 million and then to Show a compound annual growth rate of 14% up to 2021

Information and Communication Technologies:

• By 2023 Turkey aims to increase the ICT sector’s size to US$160 billion, with annual market growth of around 15%.
• Plans include increasing the number of ICT companies to 5500 and exports to US$10 billion.
• ICT spending in Turkey is expected to grow faster than the world average.

In addition to these sectors, Defence which is positioning itself as important exporter at recent years and Aerospace industries are also growing.

MARKET ENTRY IN TURKEY

Import duties 
For most fasteners a 3.7% duty is levied on European imports (Turkey is within the EU tariff zone) from third countries.  Several countries benefit from a preferential 0% tariff. The TARIC database shows more details for Chapter 7318. Note that it is only possible to claim a preferential tariff treatment with a Certificate of Origin. Although the import tariff for most fasteners is 3.7%, there are a few exceptions. For a few products from specified countries there are anti-dumping tariffs in place. This, for example, applies to some fasteners imported from China, but also from other Asian countries such as Taiwan, Indonesia Malaysia and the Philippines. Anti-dumping tariffs vary greatly: they start at 22.9% and go up to 27.4% for self-tapping stainless steel screws from the Philippines and 74.1% for spaced thread screws from Malaysia, for example.
Basically there are two market entry strategies for fasteners producers. 

1. The first strategy is the production of mainstream, relatively low quality fasteners for low-end markets. Importers/distributors in Turkey sell these products passively to their customers.
2. The second strategy is the best choice for most fastener manufacturers from developing countries: smaller volumes and customised manufacturing, based on customer (importer/distributor) or end user requirements. This approach, although more demanding in terms of quality assurance of production and service, offers the best opportunities.

Through which channels can you find fasteners in Turkish market? Turkey is home to several interesting prospects for producers of fasteners from developing countries. In fact, there are two main options to enter the Turkish market: through importers/distributors and through manufacturers of fasteners. Of the two possibilities, importers/distributors are the best prospect group. As all potential partners are unique, with their own customers, market segments and products, the profile of potential partners is very important

OPPORTUNITY FOR ENTRY
Existing Suppliers are strong and more competitive at standart & big size items made by standart raw materials and standart production technology. Special inquiries which requires special material, size, molding , process and very tight tolerances cannot met by these Suppliers. These high level QC specific demands are met by overseas  sourcing at high costs. Profit margin is also high at these ranges. The number of Professional Manufacturers and Sourcing companies, teams, qualified workforce at these ranges are very few and  mostly branches of Multinational companies are active as solution provider.. At Inland Manufacturing side, The molding technics and experience of Manufacturing items at these specific field  is poor at specially smal size hot&cold forging as molding and production methods and equipments. There is also lack of technological test and QC equipments to certify supplied products. 

 

TURKEY		2017-Q1	2017-Q2	2017-Q3	2017-Q4	2018-Q1	2018-Q2
TOTAL	1000$	249.448	269.864	284.735	314.950	295.579	254.731
IMPORT	1000$	168.910	183.107	190.750	210.592	173.390	138.096
EXPORT	1000$	80.538	86.757	93.985	104.358	122.189	116.635
EXP/IMP	%	47,7%	47,4%	49,3%	49,6%	70,5%	84,5%

GLOBAL INVESTMENT OVERVIEW :

The investment Outlook in Major Manufacturing Countries as China, Taiwan, Japan,Germany and USA seems positive as sales growth is expected in 2019. APAC region is expected to growth as before. US-China trade wars effects the İnvestment climates for both markets but this war is not expected to impact negatively on investment opportunities in China and the region, but positively..
Industrialization activities in MENA regions is also projected to experience strong gains. Saudi Arabia newly launched investment plan to spend billions of dollars to revive foreign investment. Also competition is not harsh in this region as there is not too much players as İn Europe and USA..
Eastern Europe is also a good option to invest to produce and export to West Europe. Industrial Fasteners Markets is more Lucrative Segments for Investment Sales Growth is expected by the growth in Automotive, construction, aerospace and fast changing industries. Government expenditures on infrastructure is expected to growth as well.
Automotive fasteners is the largest single market for fasteners and expected to obtain about 30 % of total demand in next few years.  Electric, self driving and connected vehicles are global trends and potentailly make the largets impact on the global fasteners investment.

Semi-permanent Fastener market is expected to growth in coming years, too.
Although the Standart Fasteners will still represent the majority of total sales market,  the price competition is very fierce and the return on investment is not as lucrative as special fasteners such as aerospace-grade fasteners. Investment in New technology (Fasteners 4.0) will continue its growth. Robotics, IoT, automotion technology, Data Analytics, AR and many more expected to be implemented and used more than before.. Investments in this fields will create significant competitive advantages against other players in the market.
In Turkey, Investments are heavily on Standart fasteners ranges which has considerably big effects to lower import figures from China and getting more competitive by recent rising Exchange rates. Population Growth and industrialization efforts are also other important aspects to invest in Turkey.   In Medium term,  Special Purpose fastener ranges and Technologies should be invested to produce more value added fasteners ranges to gain more advantages in coming fierce competition.