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Western China will become a key area for the development of the fastener industry
2019-10-14 15:22
In recent years, the global demand for fasteners has seen an average annual increase of approximately 5.0%. In the coming years, the global fastener industry is expected to enter a period of steady development. In 2010, the demand for fasteners in the United States, Western Europe, and Asia reached US\$16.6 billion, US\$14 billion, and US\$19.2 billion, respectively. By thread type, the demand for fasteners is distributed as follows: external threads account for approximately 52% of total demand; internal threads account for approximately 19%; threadless products account for approximately 18%; special and combination pieces as per customer requirements account for approximately 7%; and aerospace and other special fasteners account for approximately 4%.
Currently, China's agricultural, water conservancy and energy, transportation, information, construction, and environmental protection industries are developing rapidly, creating a significant demand for mechanical equipment. With the improvement of industrialization and automation levels, these equipment require a large number of high-performance and high-reliability mechanical components. According to Luo Baihui, Secretary-General of the International Mold Association, during the upcoming 12th Five-Year Plan period, domestic demand for mechanical basic products such as seals and fasteners will increase significantly, maintaining a double-digit growth rate annually. Most products are expected to double during this period, with some even exceeding that.
The positioning of fastener products prioritizes high-end bolts and screws of grade 8.8 and above for the machine tool and automotive industries, supplemented by fasteners for engineering machinery, agricultural machinery, rail transit, petrochemical equipment, and environmental protection equipment industries. The mechanical components market provides the necessary fasteners and standard parts.
Luo Baihui, Secretary-General of the International Mold Association, stated that with the advancement of technology, the world is becoming increasingly interconnected, and countries are integrating rapidly. Within this global community, China's rapid economic rise has made it one of the most dynamic economic regions. China possesses relatively complete economic infrastructure, a mature industrial development, and lower labor costs, giving it a comparative advantage in becoming a global center for hardware manufacturing. The outward-oriented development of the hardware manufacturing industry is evident.
China is Japan's largest trading partner for fasteners. From January to November 2011, fasteners imported by Japan from China accounted for more than half of Japan's total fastener imports. Japan's exports of fasteners to China accounted for approximately one-quarter of its total fastener exports. The Great East Japan Earthquake of March 11, 2011, disrupted Japan's domestic parts supply chain, significantly impacting the Japanese fastener industry, with some companies even reducing production or halting operations. Faced with a sluggish domestic economy, a continuously appreciating yen, and insufficient power supply, more and more Japanese manufacturing companies are turning their attention to the vast potential of Western China.
According to annual surveys conducted by the Japan Bank for International Cooperation (JBIC) of 600 large Japanese manufacturing companies, China consistently ranks first in terms of the most attractive region for overseas investment, with a particular focus on Western China.
The "Catalog of Advantageous Industries for Foreign Investment in the Central and Western Regions" and the recently released "Notice on Tax Policy Issues Concerning the Deepening Implementation of the Western Development Strategy" demonstrate that national policies supporting the development of the western region, including Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, and Tibet, have been implemented, addressing many concerns for manufacturers interested in expanding into the western market.
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