254 American News

American News

John Wolz, Editor of FIN (globalfastenernews.com)

Mike McNulty, VP & Editor of Fastener Technology International

(www.fastenertech.com) compiled by Fastener World Inc.

Global Fastener Demand Growing at 3%

First-Half FINdex Growth Slows

The FIN Fastener Stock Index lost steam in the first half of 2017, increasing only 2.9% during the six-month period after gaining 9.1% in the opening quarter of the year. That compares to an 8.4% increase by an index of related industrial stocks during the first six months of the year. Fastener stocks gaining 10% or more in value during the first half included Arconic (up 20%); Dorman Products (up 12%); Bisco Industries (up 22.4%); ITW (up 17%); KLX (up 10.8%); and Stanley Black & Decker (up 22.7%).

The FINdex stall occurred primarily during the second quarter of 2017, when fastener stocks lost a collective 5.6% of value, compared to a 3% gain by an index of related industrial stocks. Fastener companies losing 10% or more in stock value during Q2 included Arconic (down 15.7%); Fastenal (down 16.6%); Grainger (down 22.7%); MSC Industrial (down 16.3%); and Tree Island Steel (down 12.7%). Fastener companies gaining stock value during Q2 included Bisco Industries (up 10%); ITW (up 8.1%); KLX (up 11.8%); Park Ohio (up 6%); Simpson Mfg. (up 1.4%);

Stanley Black & Decker (up 5.9%); and TriMas (up 0.5%). The FINdex rose only 9.1% in the opening quarter of 2017. Arconic was the biggest winner in stock value during Q1. Overall stock results for Arconic, which includes Alcoa’s former $1.8 billion Fastening Systems and Rings business, jumped 42% during the period.

Other companies gaining 10% or more in share value during 2016 included Dorman Products (up 12.4%); EACO (up 11.2%); MSC Industrial (up 11.2%); and Stanley Black and Decker (up 15.8%). But the opening quarter took its toll on some publicly traded companies with fastener holdings. Fastener companies losing 5% or more in share value during Q1 included Lawson Products (down 5.7%); Park Ohio (down 15.6%); TriMas (down 11.7%); and Wesco Aircraft (down 23.7%).

In 2016, the FINdex posted impressive gains, rising 20% during the year, compared to an 11.1% increase by an index of related industrial stocks.

Chicago Rivet & Machine Co. was the biggest winner in stock value during 2016, with shares climbing 78.4%.

Global industrial fastener demand will grow 3% in 2017, a Freedonia Group researcher told the Fastener Industry Summit. Ken Long, Freedonia’s manager of capital goods research, revealed Asia is the “star” in multiple categories in increases in fastener demand and production, while the U.S. and Europe rank below global numbers. Long, speaking at the first Summit sponsored by 13 fastener organizations, said trends include OEMs wanting the weight of fasteners to go down and “hybrid” fastener sales rise. “Plastic fasteners will show the fastest growth as OEMs seek to cut production costs and weight, while improving strength,” Long said. He cited PACCAR’s use of structural adhesives in truck cabs and Boeing’s one-piece carbon fiber fuselage as examples. Daimler Trucks are reducing shipping costs with 3D printing of parts.

The latest Freedonia research shows use of plastic fasteners has grown 14%.

The U.S. and China dominate the fastener sales market, with the U.S. accounting for 19% of sales, followed by China at 16%; Japan at 9%; and Germany at 8%. Long’s presentation was based on fastener market conditions from two recent Freedonia studies, Global Industrial Fastener Market and U.S. Industrial Fastener Market. The fastest market gains will be posted in China, India and other developing parts of Asia, fueled by increases in durable goods production. U.S. fastener demand, which declined in 2016, is projected to climb 2.3% in 2017. Long said the top concerns for the fastener industry are (1) The general economic climate; (2) Political uncertainty; and (3) Energy and material costs.

256 American News

Novaria Group Acquires Space-Lok

Novaria Group acquired aerospace fastener manufacturer Space-Lok, Inc. Terms of the deal were not disclosed.Los Angeles-based Space-Lok becomes a part of Novaria Fastening Systems, which includes Sky Aerospace Products and John Hassall Inc.

Established in 1962, Space-Lok designs and manufactures internally and externally threaded fasteners and component mechanisms for all sectors of the aerospace industry. Space-Lok’s manufacturing facility capabilities include CNC machining, hot and cold forging, thread rolling, gun-drilling, grinding, EDM machining, tapping and tool making. “We

EFC International Expands Global Presence

EFC International announced implementation of their globalization strategy with the opening of offices and warehouses in China, South Korea, and Germany. “EFC’s physical presence in these countries enhances our relations, providing local support and value by offering a simpler, more cost-efficient way to manage the supply chain,” stated Guenter Retkowski, VP of international sales. EFC called its recent international growth “robust.” “EFC’s focus on key attributes of Expert People, Engineering, Quality, Connections, Logistics and Local Support, Global Presence will be the driving force for the future,” added CEO Matt Dudenhoeffer. Founded in 1983, St. Louis, MO-based EFC distributes engineered metal, plast ic, cold-formed, spr ing steel stampings, electrical and assembled component parts to the OEM and distribution markets.

are proud to add Space-Lok to our award-winning team of fastener companies at Novaria,” said Monty Gillespie, president of Novaria Fastening Systems. “Space-Lok will continue to be managed in the same successful manner it has always, bringing capabilities that allow for quick and customized solutions for customers.”

Space-Lok former owner Jeff Wade called the deal “a strategic move for both Space-Lok and Novaria that will greatly boost growth opportunities.” Led by founders Bryan Perkins and Earl Larkin, Fort Worth, TX-based Novaria Group provides fasteners and other products to the aerospace and defense industries. Business units include ESNA, Space-Lok, John Hassall, Weatherford Aerospace, V&M Aerospace, Ferco Tech, and L&E Engineering.

Wrentham Tool Names Ross as EU Sales Rep Wrentham Tool Group named Gerold Ross

as new international sales rep for Europe, president Tim Cash announced. Ross holds and engineering degree. His 44-year career includes Fastcon Engineering Service, Acument Global Technologies, Textron Fastening Systems and Huck International. Founded in 1948, Wrentham is a recess header tool manufacturer providing tooling and gage technology.

257American NewsPanelists: Rules Can ‘Trickle Down’ to You

Michael Woznicki of Spirol Distribution explained that it isn’t just where your customers are, “it is where your customers are selling into” that can affect your company. In one sense, it isn’t REACH, RoHS or DEHP requirements, Erich Molloy of Soule Blake & Weschler said because vendors may have to comply even if you don’t. “Our vendors will do the same thing,” Molloy said. Rob Girdley of Würth Industry North America advised “educating your own sales people so they don’t over promise.”

In a session on Fastener Quality & Compliance at the joint meeting of the National Fastener Distributors Association and New England Fastener Distributors Association, Girdley emphasized that “you have to take time to review” the requirements and your product. And it has to be communicated up front. The key is good communication.” Panel moderator Michael Lentini of Spirol Distribution said all levels of the industry must be prepared for “full material disclosure.”

Beyond materials, customers are looking to find out what chemicals are involved, Woznicki said.

One key today is software. More and more of the materials and chemicals information is available on computers, Girdley noted. For example, IMBS –International Material Data Base, is used to track chemicals. Woznicki noted there are “only certain countries you can purchase from.” “If you can’t trace and measure it, don’t inventory it,” Woznicki advised. “When in doubt, throw it out.” And it isn’t just European restrictions the fastener industry needs to be aware of. For example, California’s Proposition 65 restricts lead. Lentini added that “brass has lead in it.” Woznicki pointed out that if you don’t have the necessary certification paperwork, “every test can cost you $375.” Ultimately, “all you can do is your own due diligence with suppliers.” U.S. manufacturers are “not as well educated” as Europeans, Girdley finds.

You want necessary information on the P.O., Girdley advised. “It is the only solid way to comply.”

Molloy emphasized seeing the ISO compliance certificate. Beyond fasteners, WEEE – waste electronic equipment such as computers, televisions, refrigerators, cell phones, batteries and circuit boards – brings in service contractors and how they deal with WEEE can be crucial even though the products may never leave the U.S., Lentini said. Lawrence Heim of Elm Sustainability Partners LLC said “the more you know about your product the more you can push back.” There are serious issues, Molloy said. For example, DHP can seep into a person’s hand and cause cancer. “As a supplier you have to ask the right questions. You have to establish a safe supply chain.”

New GM at Nucor Fastener

Nucor, Saint Joe, IN, USA, has promoted Chris Locke to General Manager at Nucor Fastener – Indiana. Locke began his Nucor career in 2008 as Manager of Maintenance and Engineering with Nucor Steel – Decatur. He also worked as Manager of Melting and Casting. Locke also worked at Arcelor Mittal, North Star BHP and US Steel.

258 American News

Bulten AB, Gothenburg, Sweden, has through its joint venture, Ram-Bul LLC in the USA, signed a contract to supply fasteners to a major vehicle manufacturer. The annual order value is US$5.5 million, with a delivery value of US$5 million to Bulten and US$0.5 million to Ramco Specialties Inc. The technical competences within Bulten, along with many years of experience of successfully supplying complex and critical fasteners to the automotive industry, were the main contributors in winning this prestigious contract. Deliveries will start at the end of 2018, and will gradually increase up to full capacity in 2020.

Bulten Signs USA Automotive Fastener Contract via its Ram-Bul JV with Ramco

Heim: Customers to Require Conflict Minerals Compliance

“This may be the last time you have to hear about this,” consultant Lawrence Heim said of U.S. conflict minerals regulation. But even if legislation changes U.S. policy, customers – especially Europeans – will still require U.S. suppliers to meet compliance. Speaking at the National Fastener Distributors Association and New England Fastener Distributors Association joint meeting in Boston, auditor Heim explained that the Trump administration is seeking regulatory roll-backs. The House of Representatives is in the “sausage making” stage of repealing Section 1502 of the Dodd-Frank Act.

Heim, of Elm Sustainability Partners LLC, has spoken to the NFDA on conflict minerals in the past.

Acting SEC chair Michael Piwowar has announced he is not going to enforce action 1502 and the SEC is considering amending existing rules. Instead of a government regulation, it will be more a part of private contracts, Heim explained. Thus individual companies may still need to follow the rules if they do business with Europe. The EU’s conflict minerals directive “impacts importers and smelters / refiners of 3TG into the EU,” Heim explained. Supplier audits in the tin, tungsten and gold conflict minerals area will increase. European companies “are terminating supplier relationships,” over conflict minerals issues, Heim noted. “There is still a lot of sausage making to be done,” Heim said of congressional legislation.

The conflict minerals situation first affects the electronics industry.

What is a fastener supplier’s role in conflict minerals repor ting? Heim said suppliers need to respond to information requests. Customers requesting information will have “increased expectations for validity, certainty and completeness.” Suppliers can “expect additional reviews or audits by customers,” Heim said. That can range from phone interviews to questionnaires to full audits. “Company-level declarations will be less accepted” and customers will want information back to the parts level, Heim said. Such information will include verification of smelter / refiner names, human rights abuses, human slavery and child labor issues. “For now, continue as in previous years,” he advised. Be aware the issues can affect your customers or customers’ customers. Thus far “nobody has a real solution” to the conflict minerals problems, Heim acknowledged.

259American News

General Fasteners Turns 65

In 1952, Jerome Grossman and Simon Diamond started a small business in their garage, named General Fasteners Company (GFC), Livonia, MI, USA, founded on values to serve customers through hard work and dedication to ensure they receive the right parts, in the right quantity, at the right time, every time. Now, 65 years and hundreds of customers later, GFC still holds these values to be true and is positioned for growth. The corporate image has been re-branded with a new website highlighting the many offerings the company provides to its customers in the industrial, medical, automotive, heavy truck and military markets.

MW Industries Acquires Tri-Star Industries

USITC to Review Steel Nails from United Arab Emirates

The U.S. International Trade Commission (USITC) has voted to expedite its five-year review concerning the antidumping duty order on certain steel nails from the United Arab Emirates. As a result, the Commission will determine whether or not revocation of the order would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. The USITC requests that interested parties file with the Commission responses that discuss the likely effects of revoking the order under review and provide other pertinent information. If the responses to the USITC’s notice of institution are adequate, or if other circumstances warrant a full review, the Commission will then conduct a full review.

MW Industries, Chicago, IL, USA, which is a leading provider of highly engineered springs, specialty fasteners, machined parts and other precision components, has recently announced the acquisition of Tri-Star Industries, Berlin, CT, USA. Tri-Star Industries manufactures a full line of standard and custom designed threaded inserts as well as a line of compression limiters in brass, steel, aluminum and stainless steel for plastic applications. Tri-Star Industries also manufactures high-volume screw machine products as well as CNC Swiss precision turned components. Additionally, the company has machining capabilities to produce metal parts and components with complex designs, tight tolerances, unique features and high-quality surface finishes. MW has completed a number of acquisitions to strengthen its product offerings and customer base and is currently evaluating a strong pipeline of possible transactions.