Hardware & Fastener Manufacturing

Hardware & Fastener Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture hardware (including metal hinges, handles, keys, and locks), fasteners (including metal nuts, bolts, screws, and rivets), or precision turned components; and engage in precision turning services. Major companies include Illinois Tool Works, MNP Corporation, Precision Castparts, and Simpson Manufacturing (all based in the US), as well as Adolph Würth (Germany), Aoyama Seisakusho (Japan), Chun Yu Works (Taiwan), KPF (South Korea), and Ningbo Jiulong Fasteners Manufacture (China).

COMPETITIVE LANDSCAPE

Demand is driven by the needs of other industrial companies, and to a lesser extent by consumer spending. The profitability of individual companies depends on technical expertise and efficiency of operations. Large companies have economies of scale in purchasing raw materials. The specialized nature and use of many products allow smaller companies to compete effectively. The US hardware segment is concentrated: the top 50 companies account for 80% of segment revenue. The fastener segment is fragmented: the top 50 companies account for 30% of segment revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products of fastener manufacturing include precision turned products (about 70% of industry revenue), externally threaded metal fasteners (about 20%), and aircraft fasteners (about 10%). Other products also include internally threaded metal fasteners. Major hardware products include doorlocks and locksets (about 70%). Other products include miscellaneous hardware, other transportation equipment, furniture hardware, and casters and wheels.