What Are The Major Factors Which Are Driving Fasteners Industry

The versatility of fasteners has led to their usage across multiple fields, whether for construction, automobiles, aerospace, electrical, medical or defense. Changes in the material of the fasteners further widens the scope of their application. The Asia Pacific region is predicted as the fastest growing sector for the fasteners industry, followed by North America.

Fasteners are items of hardware designed to join two objects in a non-permanent manner such that the joint can be dismantled without damaging the individual components. They provide an alternative to complicated engineering designs or permanent joining techniques such as welding.

The global market for industrial fasteners was recorded as USD 84.9 billion in 2016 and is projected to reach USD 116.5 billion by 2022. Regardless of which country or its economic and developmental status, demand for fasteners can be witnessed throughout.

Factors driving the fasteners industry include:

Urbanization

Developing countries such as India, China, Thailand, Indonesia, and Brazil are growing at a rapid rate, urbanizing their rural areas and matching global standards. Apart from the rural areas, the cities are growing with more expensive electronics and automotive industry growth.  

Construction of new homes and offices, machines used to build roads and highways, vehicles for transportation and even electric appliances and furnishings within the home all depend on fasteners. Industrial machines, manufacturing units, and farms also use fasteners.

Globalization

While the developing world has a straightforward need for fasteners, developed countries are not far behind. Though the developed countries would not have as much construction needs, maintenance and repair needs would still require fasteners. Countries in the regions of North America and the European Union have recorded a comparatively higher demand for aerospace fasteners.

Quality Control

High levels of quality control are maintained in the manufacturing of fasteners, since the fasteners are further used in essential service. The requirements for high-quality, low-weight and specialized fasteners at economical rates encourages healthy competition in the industry.

Corrosion resistant fasteners are safer for medical purposes, while low-weight fasteners increase efficiency for the automotive industry. New innovations in the field of fasteners target expanding the market by using different materials.

Government Needs

Fasteners are used in multiple government fields of high importance. The government’s department of defense makes use of fasteners in military equipment across all 3 branches: Army, Navy and Air Force. Surveillance equipment, vehicles, and arms require fasteners of the highest quality. Apart from the department of defense, fasteners play a role in scientific and technical research and development, and medical care.

Innovation

The applications of fasteners already cross several industries; however, in the future, even more, applications are likely to come up. The growth in popularity of 3D-printers will also lead to an increase in the use of fasteners, including in home-settings apart from industrial usages. Due to the easy use of fasteners such as nails, screws, and bolts, even people without any formal industrial training can utilize fasteners.  

Considering the wide applications of fasteners across industries, the market and scope is expected to

What is the Future of the Property Market?

The property market has remained subdued even with the slight uptick in the annual house price growth during November. The prices increased by 1.9% compared to a year ago which is up from the 5-year low of 1.6% seen in October. These figures have been provided by the building society.

The chief economist of Nationwide, Robert Gardner, has stated that how the broader economic conditions evolve will have a large impact. In the short-term, the household budget squeeze and the uncertainty of the economic outlook will continue to lower the demand for property. The fact that borrowing costs are still low and the unemployment rate is at a 40-year low will not have much impact at this point.

If in the months ahead, the economic uncertainty were to lift and rising employment remained, there could be a pick-up in activity within the next year. The household income squeeze is already starting to moderate. Policymakers have also indicated that interest rates are expected to rise at a moderate pace if the economy performs as it should.

Changes in Housing Supply

The housing supply picture has also improved over the years. After the financial crisis, there was a fall of almost 60%. In recent years, there has been a great increase in construction, especially for serviced offices in Woking.

In the year 2017/18, new build construction in England reached 195,300 which is 3% below the levels of 10 years ago. The picture improves more when the number of larger houses which have been converted into apartments is taken into account. There is more improvement when the change in use of properties are considered which are former offices which have been turned into residential buildings.

When using this broader measure, the net addition to the housing stock is now only 0.6% below the levels of 2007. The change in uses of buildings have provided a major boost to the housing supply in recent years.

A major factor is this is the change to government policy in 2014 which now grants automatic permitted development rights for converting offices into residential property. It is important to note that the rate of change in use has slowed in the last year. However, it still accounts for approximately 30,000 dwellings, which is around 70% higher than the level 10 years before. There are some areas such as Bristol and Nottingham where change of use has accounted for half of the homes added to supply stock in the last 3 years.

Where is Supply Increasing?

In the last 10 years, there has been an increase of 1.9 million in total housing stock in England. This is an increase of 8.5% when compared to the relative stock of 2007. The strongest growth has been in the South West and the East of England.

These areas have also seen relatively strong growth in house price over the same period. This suggests that the supply is a response to the house price signals.

Regions such as the North West …