SPRING 2017

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THE DISTRIBUTOR’S LINK
GLOBALFASTENERNEWS.COM END OF 2016 FIN SURVEY: PROFITS OUTPERFORM SALES from page 58
Company pay increases in 2016 averaged 2.6% and
pay hike projections during 2017 average 2.3%.
•POLITICAL CONFIDENCE: End of 2016 FIN
Survey participants expressed more confidence in the
incoming White House on business issues than incoming
Congress.
Almost half expressed “High” confidence in the
incoming White House as 2017 begins. Another 36%
rated their confidence as“Moderate” and 14% “Low.”
In contrast, half of participants rated their confidence
in the incoming Congress as “Moderate” vs. 35% “High”
and 15% “Low.”
The last two times there was a change in presidents,
the 2017 incoming White House rates 3.5, compared
with 2.3 for 2009 and 3.5 for 2001.
After the 2000 presidential election, the industry’s
confidence in the incoming White House was at 3.5 – a
jump from 2.6 at the end of 1999. However, the number
mostly sank during the subsequent eight years, ending
at 2.3 with a recession starting at the end of 2007.
After the 2008 election, the incoming White
House rated 2.3 – the same rating as the outgoing
administration.
The End of 2008 FIN Survey was mostly conducted
before President-elect Barack Obama visited Cardinal
Fastener en route to his inauguration.
• No DISTRIBUTORS reported difficulty obtaining
fasteners during 2016. Distributors reported gross
margins ranging from 27% to 48% in 2016.
• More than 76.5% of MANUFACTURERS reported
raw material inventory was unchanged at the End of
2016. The remaining manufacturers reported a moderate
decrease in raw material inventory.
Manufacturers forecast operating at an average of
68% of capacity in 2017.
Steel prices rose 4% to 10% in the last six months.
•PERSONNEL continues to dominate the “biggest
problem” list, but more emphasized finding new staff
that problems with existing people: “Hiring” or “finding
good, qualified personnel.”
OTHER “BIGGEST PROBLEMS” INCLUDED: A
variety of new sales comments from “Lack of orders” to
“generating new business,” manufacturing economy slow
and economic uncertainty. Rather than rising prices, one
participant pointed to “decreasing raw material prices
resulting in price pressure.”
Sampling of End of 2016 FIN Survey
Comments:
“We are seeing more emphasis on ‘price’ vs. total cost at
the OEMs.”
“It is very difficult to get audiences with new customers.”
“We see more demand for domestic production.”
“Unsure of what 2017 will bring.”
“Various industries are not optimistic that current
production levels will be sustained.”
“Software.”
“Large customers going overseas.”
“More competition from adhesives.”
“Seeing slight increases in steel prices, moderate increases
in stainless, higher increases in bronze and copper. About
3% to 7% increase in adhesives + chemicals.”
The End of 2016 FIN Survey was conducted during
December 2016. The FIN Survey is informal and not
designed to be a scientific survey. Surveys are sent out to
FIN subscribers and is available for GlobalFastenerNews.
com readers to participate in. Responses are anonymous.
Participants ranged from companies with 5
employees to 1,800 employees; and $875,000 in
fastener sales for 2016 to $660 million.
GLOBALFASTENERNEWS.COM