Insight

Here PRISMEFIX – Association des Distributeurs Français Spécialistes en Éléments D’Assemblage – gives a brief summary on the latest developments within the French market, as well as how it ensures its members are kept up to date with the latest developments both from a domestic and international perspective.  

The French market has experienced a ‘triple-face’ aspect for the last two years. For industry, the market is quite dynamic with good perspectives. For the residential building market, contrary to the industrial building market, which is following the industry market, there is a real important slowdown – due particularly to interest rates impacting the start of new construction at around 30% in the last two years. For the DIY market, after two very good years during the Covid-19 period, things have gone back to a similar point as
before the pandemic, if not a little lower, due to rising cost of living for families.

These factors have meant that our members have reported a satisfactory last two years, depending on the markets they are focused on. Of course, during this period there have also been some big issues impacting the fastener sector itself. Firstly, there is the influence of the Carbon Border Adjustment Mechanism (CBAM) regulation, which is creating huge levels of administrative jobs and costs for all companies. This is having an even bigger impact on SME businesses who have less people to take on this type of administrative responsibility. There are also uncertainties regarding the data coming from overseas manufacturers, as well as what the future cost of CBAM duties will be. This could have a major impact on where a lot of sourcing of products will be in the future. 

Another topic that has slightly gone into the background, but is still having a big impact on the European market, is the anti-dumping duties on certain products from China. Similar to when the previous anti-dumping regulation was introduced, sources of product have moved from China to other countries, especially to Taiwan, which again has an impact on costs. As an association we are also very aware and vigilant about the risk of circumvention and give alerts for our members.

These types of topics do create costs for distributors, but they also create opportunities, as they will favour distribution rather than direct manufacturers. However, the question is the capability and capacity of SME companies to handle all these challenges. This could lead to the concentration of businesses; more specialisation within companies; as well as manufacturers adding distribution arms or distributors even adding manufacturing capabilities.

To help our members with all these types of events and challenges we look to provide as much data and information as possible. Firstly, we have two meetings a year in which we meet for a full day to discuss what is happening within the fastener and fixing sector. To add to this, we have a newsletter that is published every two months that includes PRISMEFIX news, EFDA news, European community news, a worldwide selection of news, as well as technical issues, normative news, currency evolution, plus raw material and international freight index graphs. The purpose is to give our members up to date news regarding their business and share experiences on non-sensitive subjects. In case of urgent events, or important information, we can immediately inform members via email and then arrange video meetings to discuss if required. 

Going forward, as an association our main target is to expand our number of members. This should enable us to increase our representativity and thus our ability to weigh in on state or industry decision making. Of course, this will also enlarge and improve the quality of our exchanges.

As for the French market, the current political situation in France – with the results of the European elections – has the potential to become uncertain, especially for investments, which could impact the market.