AUTUMN 2019
FAST COMMENT
3
www.fastening-solutions.co.uk
There are a lot of political, economic and industry factors influencing
markets right now but, if you ignore the noise and drill down into the
numbers, it’s not as doom-and-gloom as it may at first appear.
There finally looks to be a tiny light at the end of the Brexit tunnel, stock
levels are reportedly returning to normal after some companies and distributors chose
to stockpile. However, things are subject to change, as we’ve become all too familiar
with in the past three years. In fact, there are warnings of a recession in 2020 based
on the ongoing uncertainty around Brexit and the US/China trade war.
In any case, the numbers look more solid. According to MarketsandMarkets, the
global adhesive and sealant market is expected to grow from $59 billion in 2019
to $74 billion by 2024. That’s a compound annual growth rate (CAGR) of 4.6%
and is due to demand from several industries, as well as untapped and unexplored
opportunities opening up in emerging economies such as China, India and Brazil.
Key to growth for companies, MarketsandMarkets says, is new product launches/
developments, mergers/acquisitions, investment and expansion, and R&D.
The automotive and transportation segment is predicted to show the highest
CAGR due to increased demand for lightweight, efficient and eco-friendly cars.
Earlier this year, Grand View Research reported that the global industrial fasteners
market was estimated at $83 billion in 2018 and is expected to expand to around
$110 by 2025 at a CAGR of 4.1%. This is also driven by the automotive industry
which is adopting lightweight plastic variant fasteners over metal ones.
Shifting manufacturing trends towards producing innovative products, such as
specialty, miniature, and hybrid fasteners to tap the altering consumer demand are
also projected to help growth. Furthermore, and like the adhesive market, companies
engaged in mergers and acquisitions to increase their production capacities, product
variation, and geographical reach, will strengthen their position.
So, the message from the big research companies is: Speculate to accumulate,
especially if you service the automotive industry. However, from my experience talking
with some of you at FAST Live in September, there is naturally still some uncertainty
until the ‘B-word’ is resolved. Whether this happens on the 31 October or not, UK
businesses need decisions to be made so they can take advantage of what seems to
be a growing global marketplace with new opportunities.
AUTUMN 2019
VOLUME 23 NUMBER 4
MA BUSINESS
Hawley Mill, Hawley Road, Dartford, Kent DA2 7TJ
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Editor Tom Austin-Morgan
T: 01322 221144
E: tom.austin-morgan@markallengroup.com
Sales director Jez Walters
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E: jez.walters@markallengroup.com
Sales Executive Ray Green
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E: ray.green@markallengroup.com
Designer Heather Woodley
E: heather.woodley@markallengroup.com
Production Sejal Patel
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E: sejal.patel@markallengroup.com
Circulation manager Chris Jones
E: circulation@markallengroup.com
Publisher Luke Webster
E: luke.webster@markallengroup.com
ISSN 2056-9033
FAST (Fastening, Adhesives, Assembly & Joining
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Tom Austin-Morgan, Editor
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