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.

Mark Thijssen Msc, manager sales and marketing

The disruptive developments on the world stage have been felt by us all since 2020. Whereas 2020 showed itself to be particularly erratic in the demand pattern, 2021 was marked by a strong recovery. This has been accompanied by new challenges, but also sheds a bright light on opportunities for the carbon footprint, efficiency and robustness of our collective value chain.

The world of Thielco is that of corrosion protection. As a family-owned business with 180 employees, we offer a diverse spectrum of modern surface treatments for fasteners used worldwide in the wind, automotive, agricultural, railway and general construction industries. By definition, this means that we operate at the end of the production chain and are the last step before delivery to the end customer.

From our place and role, we recognise that our customers have come under higher delivery and cost pressures in 2020 and 2021, due to the limited availability of raw materials, logistics and labour. While we estimate that the situation may relax slightly in 2022, 2020/2021 has created a new reality that will not change to the situation of yesteryear. It is in the midst of the current turmoil – where robustness and stability, reliability, and cooperation, are more important than ever – where the Thielco DNA comes to full bloom. We hold the conviction that chain partners have a responsibility to look out for each other in complex times. If we collectively learn from the challenge, we will be more resilient in the strategic term.

Thielco’s strategy has always been to have the conversation about challenges and then develop solutions. Each new investment then brings a lower carbon footprint, improved efficiency and new opportunities, for example more possibilities in terms of product dimensions.

Especially now, with the recent developments, we notice the appreciation for this modus operandi among tier customers and the OEMs, both direct and indirect. Where previously the conversations were limited to a pleasant supplier customer relationship, we are now experiencing an increased partnership in the chain. The joint insights emerging from this have led to Thielco opening no less than three new production facilities in 2020 and 2021, which strengthens our partner network as a whole.

Strengthened by these positive experiences, we call on the market to actively seek out this communication. Focus on the mid to long-term and choose mutual development with fewer and stronger partners over a fragmented procurement policy.

In daily business, the trend towards more transparency and cooperation is clearly visible in several areas. A shining example of this is the ever growing maturity of modern quality standards, such as IATF 16949 for the automotive industry and APQP4Wind for the wind industry. This type of certification gives a clear signal about the capabilities of chain partners, without the essence being lost in a maelstrom of information. In addition, it facilitates the standardisation of packages of requirements and counteracts fragmentation of regulations. In this sense, it is fully in-line with the current zeitgeist and will help the value chain to set-up its processes effectively. It simply provides guidance for investment choices throughout the chain.

Logistics have become permanently more complex from an environmental and cost perspective. In addition, anti-dumping measures are expected to take effect in 2022, further disrupting European imports. In the short term, this is a challenge for those companies pursuing a global sourcing policy. At the same time, this makes the move back to a more geographically concentrated value chain more attainable than before.

At Thielco, it is our firm belief that European fastener manufacturers are well equipped to cope with increasing capacity requirements. We too, as a surface treatment specialist, work with a scalable capacity, which allows us to continuously anticipate a growing need.

The development towards a more regionally oriented production network will greatly reduce the number of transport movements. This means that we will reduce the environmental impact, be able to work more leanly, simplify communication and ultimately reduce the entire cost of production.

Centralisation is an important principle of our strategy. For this reason, Thielco has chosen to accommodate all processes, also in the future, at our main location in the village of Reuver. This location is in the south-east of the Netherlands, right on the German and Belgian borders, and therefore in the heart of our European network. Very recently, a large acreage adjacent parcel was obtained, securing generous expansion space for decades to come.

From this main office in Reuver, Thielco will retain a calm but focussed eye on the market developments. We are optimistic, open for ideas and will continue to facilitate stronger cooperation. In fact, yet another new facility is already looming on the horizon.

Stay healthy, stay tuned and all the best to all players in our wonderful industry.