Global demand and value for industrial fasteners is expected to grow in the coming years as production in a variety of industries is predicted to pick up.
With the manufacturing of various goods and machines comes the need for parts that can support their structural integrity – be it something as small as a single car or as large as an entire building. The strength of an entire industrial project comes from the use of quality equipment in every aspect of its construction, from the major beams to the pieces that bring them together.
Markets set to grow
Among the various products that are used in these kinds of projects are industrial fasteners. These parts are essential in maintaining the structural integrity of a job because they help connect multiple components.
A recent report from Research Moz indicates that the global market for this variety of fastener is expected to grow from its value of $65.5 billion in 2011 to $94.65 billion in 2018. This expansion is expected to move at a compound annual growth rate of about 5.4 percent between 2012 and 2018.
Externally threaded industrial fasteners were the largest product segment of the industry, making up more than $25 billion of the market in 2011 and is expected to show the fastest growth over the coming years. The report also found that segments including electronic, electrical, fabricated metal products and aerospace equipment were the largest application area for these parts, making up about 30 percent of the demand within the industry during the same year.
Growing economy helps spur growth
One of the major reasons why the report expects the sectors to grow in coming months is because of economic activity improving throughout the world. One such industry that is expected to grow is the automotive industry.
As markets improve around the country, so do individuals' disposable incomes, which could be spent towards a new car. This trend can be seen in the United States, as Edmunds.com expects car sales to return to pre-recession levels. According to forecasts from the company, new car sales are expected to hit 16.4 million in 2014. These will be the highest numbers the country has seen since 2006.
With so many individual components inside a new car, the need to make sure that they are secured in place is high. These factors are not just limited to the automotive industry as many sectors are expected to pick up with the recovering economy.