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By John Wolz
editor@FastenerNews.com
FIN Survey: North American fastener prices up in 2007 with more increases ahead
• More than 65% of survey respondents reported a rise in costs during
2007.
• The average pay raise dropped to 3.2% in 2007 from 4.6% the
previous year. The number of companies holding the line on
employee compensation nearly doubled from 2006.
Three-quarters of fastener companies raised prices an average of
• Nearly three-quarters of fastener companies increased their workforce
8.2% in 2007, according to the End of 2007 FIN Survey of the
or maintained current staffing levels in 2007.
Fastener Industry.
• Economic confidence is down. Executives expressed more confidence
• More price hikes are anticipated in the first half of 2008, as 92.3% of
in the global economy than in North America. Confidence in the
importers, 73.9% of distributors and 70% of manufacturers expect to
White House and the U.S. Congress on business issues continued to
raise prices in the next six months.
slide to record lows at the end of 2007.
• The percentage of fastener firms reporting sales increases in the 29th
• The FIN Company
annual FIN Survey dropped from 70% for 2006 to less than 50% for
Performance Index
2007. Profits were steady as the FIN Profit Index remained the same
held even at 6.8. The
as the year before.
Index asks survey
participants to rate
• The first month of 2008 brought increasing headlines about the U.S.
their current company
economy heading into a recession. Though the percentage of fastener
performance from 10
companies reporting actual sales increases declined from 2006 to 2007,
indicating record
the majority still had sales gains last year, observed Tony Casilio of AWP
growth and profits to
Research, who has been conducting the FIN Survey for 14 years.
0 for bankruptcy.
FIN survey indicators for 2008
Raw Material Prices – More than 75% of manufacturers expect raw capacity to a level not seen since the 1990s.
material costs to increase during 2008.
Of the End of 2007 FIN Survey participants, distributors totaled 40.7%,
Sales – Nearly 60% forecast 2008 sales will be higher than 2007, manufacturers 35.4% and importers 11.5% of participants. The 29th
down from the 69% prediction a year ago for 2007. Only 11.5% annual FIN Survey is the first conducted entirely online and drew
anticipate sales will drop. responses from 113 companies.
Profits – A 57.5% majority predict higher profits for 2008, while 23.9% Fasteners accounted for an average of 83% of the companies' sales.
expect profits to remain "about the same" and 10.6% are bracing for a The companies averaged 3.3 plants/warehouses and ranged from one
drop in profits. to more than 20 facilities. Eight participants reported annual sales
under US $1 million, and five reported sales in excess of US $200
Costs – A majority of survey participants are bracing for rising costs, million.
with more than 56% anticipating at least a "moderate" cost increase.
Only 26% think costs will remain stable. A total of 37.2% reported annual sales under US$5 million. A total of
4.45% had sales topping US$200 million.
Capital Investment – A 39.8% majority plans to maintain their current
rate of capital spending in 2008, while 30.1% anticipate increases. The End of 2007 FIN Survey questionnaire was available online from
late November 2007 to the beginning of January 2008.
Pay Raises – Just over 60% of respondents plan to boost pay an
average rate of 3.2%. Copies of the End of 2007 FIN Survey are available online or in print for
US$95. E-mail:
FIN@FastenerNews.com Tel: +1 503 335-0183 Fax +1
Operating Capacity – Manufacturers anticipate increasing operating 503 335-3451
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