Hardware & Fastener Manufacturing
Description
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).
Driven by increased production of automobiles, machinery, and other durable goods, global demand for industrial fasteners is forecast to reach about $170 billion, with a compound annual growth rate (CAGR) of about 5% per year from 2024 to 2034, according to Precedence Research.
The US hardware and fastener manufacturing industry includes about 5,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $38 billion.
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 hardware and fastener manufacturing include doorlocks and locksets which account for about 55% and precision turned products for about 40% of industry revenue. Other products include miscellaneous hardware, other transportation equipment, furniture hardware, and casters and wheels. Other products also include internally threaded metal fasteners.
Most fastener and hardware companies make components used by other industries including the manufacture of automobiles, aerospace products, appliances, furniture, and cabinetry. Some products such as locks, deadbolts, key blanks, and certain types of fasteners (nuts, bolts, washers, screws, and nails) are for use in the construction industry and are also sold by hardware and home center retailers for the do-it-yourself market.
Basic raw materials are ferrous and nonferrous metals, such as carbon, alloy and stainless steels, aluminum, titanium, brass, copper, zinc, nickel, and various alloys. Raw materials are bought in semi-finished form (slabs, billets, and blooms) or finished form (plates, coils, sheets, wire, bars), either directly from primary metal processors or, more often, from large metals distributors (metals service centers).
Fasteners are typically manufactured from purchased metal alloy wire or bar stock of varying diameters. Stock is then cut to size, formed with machine tools, heat treated, and thread rolled to customer specifications. Hardware products are usually made using machinery to stamp, forge, roll, extrude, or cast purchased metal stock into finished or semi-finished shapes. Products then undergo various finishing processes to ensure dimensional accuracy and surface finish. Manufacturing operations are highly automated to reduce costs.
Driven by increased production of automobiles, machinery, and other durable goods, global demand for industrial fasteners is forecast to reach about $170 billion, with a compound annual growth rate (CAGR) of about 5% per year from 2024 to 2034, according to Precedence Research.
The US hardware and fastener manufacturing industry includes about 5,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $38 billion.
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 hardware and fastener manufacturing include doorlocks and locksets which account for about 55% and precision turned products for about 40% of industry revenue. Other products include miscellaneous hardware, other transportation equipment, furniture hardware, and casters and wheels. Other products also include internally threaded metal fasteners.
Most fastener and hardware companies make components used by other industries including the manufacture of automobiles, aerospace products, appliances, furniture, and cabinetry. Some products such as locks, deadbolts, key blanks, and certain types of fasteners (nuts, bolts, washers, screws, and nails) are for use in the construction industry and are also sold by hardware and home center retailers for the do-it-yourself market.
Basic raw materials are ferrous and nonferrous metals, such as carbon, alloy and stainless steels, aluminum, titanium, brass, copper, zinc, nickel, and various alloys. Raw materials are bought in semi-finished form (slabs, billets, and blooms) or finished form (plates, coils, sheets, wire, bars), either directly from primary metal processors or, more often, from large metals distributors (metals service centers).
Fasteners are typically manufactured from purchased metal alloy wire or bar stock of varying diameters. Stock is then cut to size, formed with machine tools, heat treated, and thread rolled to customer specifications. Hardware products are usually made using machinery to stamp, forge, roll, extrude, or cast purchased metal stock into finished or semi-finished shapes. Products then undergo various finishing processes to ensure dimensional accuracy and surface finish. Manufacturing operations are highly automated to reduce costs.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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