Insight

A review and preview of the global fastener market

Named after the Roman god who is often depicted as having two faces – due to its ability to look to the future and to the past – the Janus Perspective is a unique feature that includes a wide cross section of global fastener business leaders, who have all contributed their retrospective of 2021 and thoughts on prospects and challenges for 2022.

Jorge Cámara, export manager

As I am sure is the case for the majority of companies, 2021 figures for Chavesbao showed a very positive recovery from 2020’s global contraction. The relevant turnover increases experienced in 2021 is a trend every company involved in the fastener sector will have seen. However, hiding in those brilliant numbers is an intense suffering.

This suffering involves the management of unprecedented tough conditions that we are currently experiencing and living in the supply chain – such as the replacement of goods both for our purchasing and sales teams, which is a key issue, as well as service reliability, which has been seriously impacted from origin to destination.

At least the next two quarters of 2022 are forecasted to be framed in that context – under high pressure and instability due to different disruptions and bottlenecks currently affecting and risking supply chains. With significant probability they will remain for the following months.

There are a number of challenges we all must face. Covid-19 is still unsolved and damaging (new variants of the virus, infection spreading, unequal percentages of the population vaccinated in Europe and worldwide). There is also accelerated consumption and an unbalanced situation between demand and offer – there are relevant shortages in capacities and delivery delays at manufacturing sites. There is also friction in raw material costs, as well as currencies playing their role. Freight tensions and a great global traffic jam are leading to increased costs, lack of capacities and delays in global sea freights – with a growing shortfall status in the European freight forwarders capacities. To add to all this, there are difficulties in recruitment of qualified skilled employees; energy costs are undermining private and company economies; meanwhile regulatory and industrial adaptations are needed. It is easy to see why the updated reviews are for a drop in macroeconomic forecasts for 2022.

There is also the anti-dumping factor to add to this perfect storm formula, with the European Commission seemingly set to apply huge anti-dumping duties, as its final measures position, for Chinese carbon steel bolts and washers This will be bad for China and bad for Europe. Unfortunately, the European regulators seem to be leading us all, again, to unsafe and unclear waters.

These duties endanger the competitiveness, profitability and sustainability of the European industry when playing on the worldwide gameboard. For European wholesalers and importers that hold European fasteners distribution, those big question marks come back again – similar to a few years ago. We do not have the persuading touch that the great Henry Fonda showed in the film ‘12 angry man’, to put things under reasonable questions to the jury. In our case, really being understood and having chances to change political positions/views in Brussels and at national authorities (they do hear, but how do they listen?) is a challenge when starting always under presumption of guilt. It was Julius Caesar who said: “Alea iacta est” (the die is cast).

Uncertainty is our companion. Current stoic times evidence how reality exceeds fiction. A changing and destabilising external situation that continually shows us that the biggest challenges we will face will be those we cannot foresee. As Marcus Aurelius, another wise roman Emperor, said: “You have power over your mind – not outside events. Realise this, and you will find strength.”

So, talking of things that are in our hands, inside my company. In the middle of 2021 we began shifting warehouses, meaning 2021 was a transition period to 2022 when our new premises will be consolidated. Honestly it has been very challenging lining up this transformation with current demand speed; we feel grateful to customers for being really understanding with any service inconvenience through this journey. However, once complete we will be able to give an even better and optimum service for a huge portfolio of demands and requirements.

Other day-to-day focuses include digitalisation, compliance, as well as our recycling and renewable policies. Values are always good masts and sails, and you especially need them to drive the ship when the ocean market shows its power.

Real inspiring leadership and commitment is needed to better face today and tomorrow, as well as minimise any potential risks. Our crew and customers deserve that we show them wisdom and hope, as well as a better picture of ourselves – everyday. These are not empty words, for me the daily effort; working to build a humble houselight – a warm flame to guide; bringing in our teamwork, training, good communication, perseverance, resilience, quick adaptation, continuous improvement goals, generosity and sense of humour; all fasten together to make an extraordinary steel. It is a privilege to hoist that flag at Chavesbao.

I take this opportunity to thank all our partners who daily cooperate and rely on our team and CHB fasteners. We do appreciate your confidence. Take care and I wish you all the best!