As the economy continues to improve, the use of industrial machinery expands, which is creating a greater demand for industrial fasteners.
Industrial machinery continues to become a necessary element of the recovering U.S. economy. These machines do everything from making sure that assembly lines are running properly to packaging and assembling goods.
One of major success stories of the recovering economy has been manufacturing, which uses a lot of industrial machinery. This means that this equipment will be in high demand in the coming months. In order to make sure these tools are performing their best, companies will need to have a steady supply of industrial fasteners. With new niche markets growing, like green energy and energy efficient retrofitting, more obscure pieces will likely enter the fray as well.
Industrial machinery market growing
According to a new report from IHS Technology, the recovering automotive industry, along with other manufacturing sectors, is driving growth within the industrial machinery market. The report found that the demand for machines in the agriculture, packaging, materials handling and machine tools is expected to increase revenues from $1.5 trillion in 2013 to $1.6 trillion in 2014. This will mark a growth rate of 6.3 percent, which is more than double the growth rate of 2.9 percent in 2013.
"The improving economic outlook is a key factor in the strong growth of machinery in the coming years," said Senior Analyst for Industrial Automation at IHS, Andrew Robertson. "The growing populations and the expanding middle classes in developing countries are generating more disposable income. This translates into increased demand across a vast number of sectors."
This growth is expected to continue through the next four years, with revenues touching $2 trillion by 2018. One of the biggest drivers of growth has been the demand for cars around the world. Along with the machines used in their manufacturing, automotive fasteners will play a key role in sustaining this market expansion over the coming months.
Industrial fasteners in higher demand
This increase in machine purchases can be understood, more broadly, as an increase in industrial activity. With these heightened operations comes a need for fasteners used both in the assembly of manufacturing products and in the installation and maintenance of machines.
As a result, another report from TechNavio recently concluded that the global industrial fastener market is expected to grow across sectors including automotive, industrial machinery, maintenance repair construction and other areas. In fact, the market for these pieces of hardware will increase at a compound annual growth rate of 6.12 percent between 2013 and 2018.
"One of the major trends emerging in the Global Industrial Fastener market is the development of industry-specific industrial fasteners. The intense competition between industrial fastener vendors has resulted in the development of fasteners with more features and capabilities to provide enhanced performance," said an analyst from the TechNavio team.
"In addition, with the increase in technological developments, several vendors are developing industry-specific fasteners for increased efficiency. For instance, vendors are developing alloy fasteners and wrenchable nuts with increased strength and corrosion and temperature-resistance properties for the Aerospace and Defense sector," the analyst added.
The importance of suppliers
One of the things to keep in mind from the TechNavio report is the trend that fasteners are becoming more industry-specific. This means that some of the more obscure pieces will become increasingly necessary in industrial settings in the coming months.
As a result, the role of fastener supplier will be more important in the coming years. By working with companies that can fill even the most obscure orders, contractors can ensure that they have all the pieces they need to complete a successful job and maintain economic growth.