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FIN Survey: Fourth Quarter 2008 orders plunge
Nearly 70% of North American fastener for 2009 with more than four in ten fastener increases rose to 45.1% in 2008, up from the
companies saw orders drop in the final companies planning cuts in the first six 43.3% reporting profit increases the prior year.
quarter of 2008, including 40% of fastener months of 2009. The number of fastener companies reporting
firms that reported a “significant” decline About five in ten manufacturers expect 2008 profit declines rose to 34.1%. About 48%
in orders, the 30th annual ‘FIN Survey’ raw material prices to drop, while 28% see of manufacturers and 46.2% of distributors
found. stable prices. About 41% of companies reported profit gains.
Seven in ten manufacturers saw Q4 anticipate cost declines. Nearly 35% of survey More than 40% of companies anticipate a
orders fall, while 18% said orders “exceeded participants expect costs to stabilize in 2009, continued decline in sales during 2009, with
expectations” and 12% reported little variation with 13.9% anticipating a “moderate” cost 25.7% predicting stable revenue and 28.5%
in order activity. Among distributors, 61.6% increase. foreseeing moderate to strong growth.
recorded a drop in orders during Q4, including Nearly 41% forecast declining sales in the Fastener executives lost confidence in both
38.5% who saw a “significant” drop in coming year, while 25.7% anticipate stable the global and North American economies.
demand. Just over 25% of distributors said sales and 28.5% expect their business to sales None of the ‘FIN Survey’ participants gave
orders were stable, while 11.5% reported a in 2009. About 50% of fastener companies either the North American or the global
rise in orders during the final quarter. participating in the ‘FIN Survey’ reported sales economies a “Very High” rating.
More than 42% of fastener companies growth during 2008, with 22.2% experiencing At the end of 2008, the global economic
participating in the ‘End of 2008 FIN Survey’ a “strong” increase in sales. Profits declined, confidence index dropped to 2.2, down
laid off workers in 2008. An additional 32% with the ‘FIN Profit Index’ dropping to 3.1. from 3.0 at the end of 2007 and 3.2 the
operated at current staffing levels, while one Over 16% of participants said sales held year before. The North American Economic
in four fastener companies added jobs during steady for the year, while 14% reported Confidence Index fell to 2.1 from 2.7 at the
the year. a “strong” decline in sales during 2008. end of 2007 and 3.1 at the end of 2006.
The number of companies planning to add Manufacturers led the way, with 58% of More than two-thirds rated their confidence
more workers in the coming year dropped respondents reporting moderate to strong in the North American economy at “Low”
to 13.9% for 2009, down from the 31% sales growth, compared to 43.6% of or “Very Low.” The 67.4% easily more than
forecasting job growth at the beginning of distributors. Manufacturers scored slightly double the 30.9% negative ratings one
2008. Just over 40% intend to operate with higher than distributors on the ‘FIN Sales year ago. A total of 63.2% held “Low” or
their current number of employees in 2009, Index’ - 3.3 to 3.2 as 58% of participating “Very Low” confidence levels in the global
while 38.9% of survey participants foresee job manufacturers reported sales increases, economy; 29.9% rated their confidence
cuts. compared with 43.6% of distributors. as “Moderate”; and only 2.8% responded
Price cuts are among the key indicators The percentage of firms reporting profit “High.”
First U.S. Presidential visit to fastener plant
The world got a glimpse of a fastener Obama visited Cardinal Fastener in the more iconic company than Cardinal Fastener.”
plant when Barack Obama visited Cardinal Bedford Heights suburb of Cleveland on Friday, “The need for us to act is now. It’s never
Fastener & Specialty Co. in Ohio enroute to January 16, 2009, to promote his incoming been more urgent,” Obama asserted, turning
his inauguration as U.S. president. administration’s economic revival plan in his attention to the U.S. economy, which shed
Several industry veterans believe it is the his first campaign-style appearance since 2.6 million jobs last year, including 500,000 in
first presidential fastener visit. Edith Cameron, his historic election. As production manager December. “The first job of my administration
who started in the fastener industry during Brandon “Smokey” Delafosse introduced is to create jobs and put people back to
Franklin Roosevelt’s second term as president, Obama to the crowd of workers, relatives, and work.”
told
FastenerNews.com she doesn’t remember reporters, and presented him with a stainless “We’re not looking to create just any kind
any other presidential visits to fastener facilities. steel bolt used in wind turbines. “This is a of jobs here,” Obama explained. “We’re
George Wasmer, who was chairman of Lake good-looking bolt,” Obama smiled, heaving looking to create good jobs that pay well and
Erie Screw Corp. in Cleveland for 18 years and is the fastener chest-high. The bolt was a 2 1/4 won’t be shipped overseas. Jobs that don’t
a third generation member of a fastener family, – 4.5 x 17 A 193 B7 Heavy Hex Bolt with 2H just put people to work in the short-term, but
recalls President John F. Kennedy’s motorcade Heavy Hex Nut. position our economy to be on the cutting
“driving by up on the freeway.” Wasmer also After reading the inscription - New Energy edge in the long-term. That starts with new,
recalled that President George H.W. Bush for America, Your Friends at Cardinal Fastener clean sources of energy.”
remarked to him that former first lady Barbara - company president John Grabner looked at Obama kept the focus on the tangible
Bush worked as a temporary receptionist for Obama gripping the sizeable fastener and benefits of public investments in clean energy
RB&W during World War II. quipped, “This will be the most valuable bolt technology. “Here at Cardinal Fastener that
Fasteners received momentary presidential in America.” could mean going from 50% capacity to 90%
attention when President George H.W. Bush In opening remarks, Obama praised capacity,” Obama forecasted.
signed the original U.S. Fastener Quality Act Grabner and his family for the company’s Prior to his remarks, Obama reportedly
into law in 1990. focus on clean energy markets. “(The donned protective goggles before stopping
President Bill Clinton subsequently signed Grabners) exemplify what’s at the core of the at several workstations on his tour of Cardinal
three amendments to the original act. American spirit,” Obama declared, noting that Fastener to watch demonstrations of the
STAFDA hosted former President Gerald Ford fasteners made by Cardinal help hold together manufacturing process for the large screws
in 1980 in San Diego and Ronald Reagan in both the Statue of Liberty and the Golden and bolts used to fasten together wind
1990 in Anaheim. Gate Bridge. “In some ways, I can’t think of a turbines.
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