AMERICAN NEWS


By JohnWolz editor@GlobalFastenerNews.com


Devers at STAFDA: Economic uncertainty is the problem


Uncertainty about the economic recovery and the U.S. housing industry leads the concerns of Specialty Tools & Fasteners Distributors Association members, Robert Devers said in the annual president’s State of the Industry address in November.


T


he “Great Recession” which started in 2007, officially ended in June 2009 based on improvement in gross domestic product rising slightly for the second quarter in a row, ending the 18-month recession. But Devers,


executive vice president of Jacksonville, FL-based A-Jax Company said “continued economic weakness has raised questions about the recovery’s sustainability.” “The recovery is not being pulled along by housing, and other


components of growth are still stagnant as consumers worry about credit and jobs,” he observed. The gulf oil spill, Europe pulling back from expansionary


efforts and the drop in the Credit Managers Index, has left management uncertain. Third quarter 2010 GDP figures rose 2%, but economists find a full year at a 5% rate is needed to lower unemployment, Devers pointed out. “Residential construction also continues to report job losses,


albeit not as many as last year,” Devers said. Construction unemployment stands at 17% – down from 24% a year ago. Since the recession began at the end of 2007 half the U.S. job losses have been in construction, he noted. “In the past, housing has helped the economy rebound from recessions, but with limited demand in the current housing market, another industry needs to emerge as the saviour and right now, it doesn’t seem like any are able to step up.” September housing statistics improved and starts are up


4% over 2009, however permits dropped 10.9% in the past year. According to real estate data provider Core Logic, there are 11


million U.S. homes with upside down mortgages and millions more in foreclosure. “That’s a huge inventory of distressed homes that must be absorbed into our economy before a sustainable housing market can begin,” Devers explained. Construction of single-family homes is down 74% from the


January 2006 peak. Multi-family housing is at its lowest level since 1994. Corporations are reportedly holding US$1.8 trillion in cash


“because they are not comfortable hiring freely and making major investments,” Devers said. States have been slower than expected in distributing US$787 billion in stimulus money. All this leads to uncertainty for STAFDA distributors. “Most


STAFDA distributors would agree that business can show signs of improvement one month and turn stone cold the next,” Devers finds. “A big area of uncertainty for distributors is the unforeseen impact of mergers” in power and hand tool companies and in the safety channel. “We are also concerned what ramifications import tariffs will have on threaded rod, nails and diamond blades. Sourcing decisions, long term supplier relationships, and pricing structures have all been affected this past year,” Devers added. Also there is uncertainty over taxes and bank lending. A-Jax, founded 37 years ago by David Baker and Mary


Anne Baker as a nut and bolt distributorship, has evolved to a stocking distributor of many STAFDA lines for MRO, OEM, commercial, construction, military, utility, power generation and transportation markets.


“Wrong screws” caused panel fall


An investigation aided by the Occupational Safety and Health Administration determined that a heavy exterior wall panel that fell from a Massachusetts courthouse under construction “failed because a contractor used the wrong type of screws”, the Salem News reports.


A


worker was seriously injured on the ground when the 250Kg limestone panel fell four stories in July 2010. After months of investigation, the state Division of Capital Asset Management determined that the zinc-coated screws used by the contractor on the US$106 million state courthouse project “were not the type specified in the design of the fastener system.” “Use of the wrong screws was the ‘direct cause’ of the limestone panel falling,” the Salem News reports. OSHA utilized


national forensic engineering firm Simpson Gumpertz & Heger to conduct the investigation. SGH determined that the contractor should have used polymer-coated screws instead of zinc-coated self-drilling fasteners, which reportedly failed due to hydrogen embrittlement. Cracks were also found in other fasteners when the 154 limestone panels were removed following the accident. SGH also found that “the adhesive anchor from the stone that fell was installed in an improperly cleaned hole,” though the anchor was determined to have failed after the stone panel struck the ground.


26 Fastener + Fixing Magazine • Issue 67 January 2011


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