An overview on the future of fasteners

On September 14, "Fasteners Meetaly - Challenge the Future", the first worldwide convention hosted in Italy by UPIVEB, the Union of Italian Screws and Bolts Manufacturers, took place in Milan. A short walk from the Universal Exhibition EXPO 2015, prestigious international speakers took turns on stage to talk about the current trends that can have an impact on the fasteners market.
Below is a summary of the interventions.

The opening speech was given by the host, UPIVEB's president Sergio Pirovano, who recalled how the fasteners industry in Italy occupies 7500 employees and 230 companies, for an annual global turnover of around 2,300 million euro. A reality that can be considered small in size, and is certainly less noticeable than the consumer goods industry, but with a very strategic role; in Europe, Italy is among the top industrial powers in the field, with a strong export propensity.

UPIVEB is a member of EIFI, the European Industrial Fasteners Institute. Vice president Enio Fontana analyzed in his speech the fastener industry as a whole, citing some interesting data and forecasts. In 2013, the global demand for fasteners totaled 72.6 billion dollars, geographically subdivided as follows: 30 billion USD for APAC (Asia-Pacific), 16.5 billion USD in NAFTA (North America Free Trade Agreement), 3.3 billion in LATAM (Latin America) and 22.8 billion USD in EMEA (Europe, Middle East and Africa). This figure is growing in all regions, and will be growing for the next decade: on average the rate of increase will be around 6.3%. Of course growth will differ in the various regions: it will be higher for the Asian areas and smaller in the American zone. In 2023, the global demand for fasteners is expected to reach 140 billion USD.
79% of the global demand for fasteners comes from the OEM field, particularly motor vehicles, machinery, electrical equipment; 14% of the fasteners reach the so-called MRO sector, maintenance and repairs. The remainder goes to constructions. Looking to the future, by 2023 there will be a slight increase in demand from the construction industry, rising from 7% to 7.7%. An increase in the penetration of plastic fasteners will also be noteworthy.
The automotive sector, which has always been one of the biggest market outlets for fasteners, still gives reasons for confidence: the global production of cars in 2023 will grow from 84,74 (2013) up to 107.2 million units.
In short, the future for fasteners is bright; the world market will continue to grow, albeit at a slightly lower rate than in the past. Suffice it to say that the per capita consumption of fasteners has risen by 63% in the last decade.

During the third speech of the day, Peter Weiss, Head of Emea Supply Chain Management for FCA Group, addressed the issue of future challenges for the automotive industry and its supply chain: the increasingly pressing constraints imposed by the environmental protection rules, the ability to cope with rapid economic changes and catastrophic events may threaten the transportation capacities and infrastructures.

Various contributions of speakers of the highest level coming from different fields followed.
In short:
Andrew Brumley, chief engineer of Ford, spoke of "engine downsizing", a topic that touches manufacturers of automotive fasteners very closely. "The electric motor is under development, but we still have to overcome many difficulties, such as a sufficient duration of batteries and a widespread distribution of points of supply for energy." A hypothetical success of the electric motor in the car sector may mean a big loss for the fasteners industry...
Megatrends in the banking sector were examined by the President of Banca Mediolanum, Cav. Ennio Doris, who has analyzed the reasons why it is useful, even inevitable, to look optimistically to the future and see the crises as business opportunities. "If we look at the global GDP trend we see it growing steadily over time, sometimes more (4.5-5%) sometimes less (3-3%). The bad years are very rare."
Bernhard Gehlert, deputy chairman of the Bosch Group, talked about connectivity and convergence of various technological devices, with special reference to mobility, stressing the importance of electronics not only in our daily lives but especially in what will be the future production philosophy, which is always evolving.
“Industry 4.0” was the title of the intervention by Andrea Marinoni, partner of Roland Berger Strategy Consultants. This term defines the fourth industrial revolution, that will reach its full development only around 2030, by including in the production system the so-called “Internet of things”, the possibility to put objects in a network, giving them “intelligence” thanks to chips and sensors.
Michele Rossi, Market Product Marketing Manager at CNH Industrial, group including brands like New Holland and Iveco, pointed out how agriculture too is living a huge and fast development, also from a technological point of view.
Professor Majowiecki, teacher of Structural Architecture, discoursed on the use of steel fasteners in buildings, especially on big roofings, with particular reference to EXPO's main road, the Decumanus. The growing trend of using “free form” structures, more and more creative and less rigid, allows the realization of projects in which fastening elements are of utmost importance.

First-class representatives of the fasteners sector from all over the world have been involved in an afternoon round table, concerning the future of this field:

Paolo Pozzi - EIFI Automotive Group President
Egidio Stefano Brugola - Brugola OEB SpA, President
Ramon Ceravalls - EIFI, President of the “General Fasteners” Group - ASEFI, Spanish Association of Metal Fastener Manufacturers Vice President
Ming-Jou Chen - TIFI, Taiwan Industrial Fastener Institute, Former President
Dan Di Sebastian - Fontana Gruppo AGT, Vice President North-America Operations
Anders Karlsson - EIFI, European Industrial Fasteners Institute, President
Fernando A. Gomes Martins - SINPA, Brazilian Fastener Institute, Vice President

They discussed in-depth the situation of the Chinese market, pointing out that the current state of crisis should diminish over time. China should return to a growth path, although at lower values. The debate showed that product innovation is and will be the keystone: the market will require always lighter and more resistant fasteners. Karlsson, President of the EIFI, stated that the fastener production machines will experience a much smaller change. The speakers agreed that raw materials prices will remain low due to high demand for at least the next 10 years. The GLOCAL challenge, that is thinking on a global scale while operating locally, is also part of the challenges to face in the upcoming years.

All in all, “Fasteners Meetaly” closes its doors with a positive balance, giving important food for thought, and a clear overview on upcoming trends and challenges.
The participation of the public (more than 500 participants from different countries) has been remarkable, and the sponsors were of great importance: among the main ones, there were Carlo Salvi (see news) and Sacma (see news). Expometals.net also gave its media support to the event, as the Italian Economic Development Ministry.

For an in-depth insight of the worldwide fasteners market, you ca refer to Freedonia's research titled “World Industrial Fasteners”, at this link.

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