So the stock market is tanking and I am seeing a lot of very good orders coming in to start 2016. Do we in the fastener market see trends before the rest of the market or are these just left over orders that were not placed in 2015? People buying parts for future production? What are any of you seeing out there? If I did not have a 401K and watch the market news, I might have fooled myself into thinking 2016 was starting off with a boom. I know oil & gas is going to be hurting for a good long time (see previous post for more of that) and China is throwing a wrench into everything. But are some other markets doing well enough to drag us along? What are you seeing out there as the new year begins?
Seems like the week started in the right direction. Several nice orders came in. We’ll take it. If we continue on this trend it could be the start of a decent year.
Dave, (and others),
Just got the note below from Eric Dudas regarding the FDI results for December. Interesting. Just as the other reports are suggesting, the fastener market might not feel as depressed as the stock market seems to. Just more to ponder.
Hello,
Please find attached the results of the latest Fastener Distributor Index monthly survey. Despite many reports of tough going, the FDI improved in December, coming in at a seasonally adjusted reading of 50.8, an increase over November’s reading of 46.7. Listen to a full analysis of the FDI and respondent comments on Fully Threaded Radio 101, http://www.fullythreaded.com, with Mike McNulty, coming 1/21/16.
Thank you again for your ongoing support of the FDI. Contact me any time with questions or comments.
Regards,
Eric Dudas
The FCH Team
Still OK on the west coast. For how long, I don’t know. Tech seems to be keeping us alive. Tesla and SpaceX are bringing new opportunities (Thanks Elon). I keep telling my customers to check out Kickstarter and indiegogo for prospects. I think the future is in small disruptive companies, like those being created on the preceding sites. One of the ways that established companies will try to stay relevant in spite of these disruptions is through M&A’s.
The financial news tells me the overall economy is good. However, people are spending money on experiences (eating out, vacations, etc.) rather than “stuff”, so manufacturing will continue to slow down for now.
I think things will pick up when houses become more attainable. I also think people are spending money on cars because they have money to spend, but buying a new (bigger) home is still not something people are doing. Once they do, people again will need to fill them with “stuff”.
UK markets have been flat for 8 months and the continued dumping of Chinese steel is not helping as prices continue to fall. The softening of the £ against the Euro should improve exports. Caparo a world fastener player has gone out of business and Barton have been acquired by Optimas to ensure they do not go the same way.