Global trends in the fastener and tooling market
Read more about the trends that will drive the global fasteners and tooling market in 2024
The past year has not been an easy one for the global fasteners and accessories market. In this article, we look at whether the negative trend will continue into 2024 and what factors will influence the dynamics of the global fasteners and accessories market.
Main Global and Russian Trends
Let's start with statistics on the major segments of the global fasteners and tooling market. According to Arizton, the global market for industrial fasteners reached $89.4 billion and could reach about $125 billion by 2029, with an annual growth rate of 5.7%. Market Research Future estimates the global construction fasteners market at $28.5 billion and is expected to reach $40.4 billion by 2032, growing at a CAGR of 3.6%. According to Verified Market Reports, the global furniture hardware market was estimated at $31.8 billion in 2023 and will increase to $44.2 billion by 2030 at a compound annual growth rate of 4.2%.
Experts at fastenerandfixing.com believe that 2023 was a challenging year for the global fasteners and tools market. Undoubtedly, this trend was caused by the geopolitical factor, which forced a number of large consumers to look for new suppliers of products. Accelerating inflation also played a significant role in this trend, leading to an increase in companies' costs. In addition, companies' expenses increased due to the rise in the cost of utilities and tax increases. An important aspect is the problem of personnel: on the one hand, the shortage of employees, which led to an increase in salaries in the industry, and on the other hand, the mass retirement of employees, which could not be replaced by an influx of young specialists. Not to be overlooked is the environmental factor, including the tightening of regulatory requirements for air emissions, which led to the need to retrofit production facilities and, consequently, increased costs. These challenges are likely to persist through 2024.
Of particular note is the rising cost of raw materials, which affects all segments of the global fastener and tooling market. In today's environment, metal price volatility poses a serious challenge to manufacturers, significantly complicating planning and forecasting. Metal price volatility is particularly critical for manufacturers operating in the European, American and Chinese markets, which are characterized by significant volumes and are highly dependent on the raw material price environment.
Let's move to the opportunities emerging in 2024. Demand is expected to gradually recover from the pandemic, driven in part by an increase in industrial production (especially machinery and aircraft), furniture production and the pace of new construction. It is worth noting that customer demand has broadened: in addition to China, demand for tools and fasteners has grown in India, Europe and the US.
China, Japan, South Korea, and India are expected to remain the leading producers and consumers of fasteners and related products. This is due to both an established manufacturing base and continued high demand for a variety of fasteners. Latin America also shows moderate growth rates, with Brazil as the driving force.
One of the ways to optimize costs will be to digitize work processes. This applies to planning, inventory management and logistics. In addition, the online sales channel is gaining market share, which will also require a shift to digital. By introducing digital "assistants", manufacturers and suppliers will be able to reduce costs.
The growth rate of the Russian fasteners and tools market is generally comparable to the global market - about 5% per year. As in the global market, the main drivers are industrial enterprises and construction companies. At the same time, the Russian market has its own features - despite the developed metallurgical industry, the share of domestic fasteners has historically been relatively small. This is explained by purely economic factors: the same complex hardware is much cheaper to produce abroad, and even taking into account logistics and customs procedures, it will be more affordable than Russian. At the same time, Russian tools account for about three quarters of the market.
Why Participate in Fastenex
Sooner or later a fastener and tooling manufacturer will be faced with the need to find new customers and new opportunities. Participation in the industry event - Fastenex International Fasteners and Industrial Supply Exhibition - will help to solve this important task.
In 2023, the exhibition was visited by more than 4,100 professionals representing both construction companies and retail. It is worth noting that 93% of visitors influence their purchasing decisions, 89% of guests came to the exhibition to look for goods and services for business. Four segments related to fasteners were included in the top 10 most demanded by visitors: construction fasteners (64% of visitors were interested in them), industrial fasteners and hardware (58%), fasteners for electrical wiring (38%) and fasteners for furniture (35%).
