Industrial Fastener Demand in China to Increase Over 10% Annually Through 2013

Demand for industrial fasteners in China is projected to increase 10.7 percent annually to 74.2 billion yuan in 2013, driven by rapid growth in manufacturing production, especially industrial machinery and motor vehicles.  Increases in electrical and electronic product manufacturing will also provide growth opportunities, although these gains will be less pronounced than those achieved between 1998 and 2008.  A rise in demand for higher-grade industrial fasteners will also boost overall market value.  However, the use of new materials and manufacturing methods that reduce the number of fasteners required in the production of a variety of durable goods will restrain sales growth to some extent through 2013. These and other trends, including market share and product segmentation, are presented in Fasteners in China, a new study from the Beijing office of The Freedonia Group, Inc., a Cleveland-based industry research firm.

Standard fasteners -- externally threaded, internally threaded and nonthreaded -- account for 98 percent of Chinese industrial fastener demand.  Externally threaded fasteners are the dominant standard fastener type, accounting for three-fifths of standard fastener demand in China in 2008.  They have resisted inroads made by alternative joining methods such as adhesives or welding and will grow at a slightly above average rate.  Internally threaded types will increase at a slightly below average pace while nonthreaded types will post the slowest gains at 9.9 percent annually through 2013, affected by decelerating growth in construction activities.  Sales of aerospace-grade fasteners will outpace advances for standard fasteners, rising 13.4 percent per year through 2013.  Demand will be spurred by continued government investment in infrastructure, aerospace industries and national defense -- all important markets for aerospace-grade fasteners.

New demand for fasteners in the original equipment manufacturing (OEM) and construction markets will outpace that of maintenance/repair/operation (MRO) markets through 2013.  OEM will remain the largest market in China, accounting for over three-fourths of total fastener demand, with new sales stimulated by rapid growth in the industrial machinery, motor vehicle, and electrical and electronic product markets.  Demand for fasteners used in construction applications will be driven by government funding for large-scale infrastructure construction and rising use of higher-performance fastener products in nonbuilding construction.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.