The Manufacture and Wholesale of Metal Fasteners in South Africa 2022

Introduction

According to the International Trade Centre’s Trade Map, South Africa is the largest exporter of metal fasteners in Africa. South Africa exported metal fasteners to the value of R1.36bn in 2020, with exports to other African countries accounting for 92.5% of the total. Factors such as the impact of the pandemic, poor economic growth and high input costs continue to have a significant impact on the performance of the metal fasteners manufacturing and wholesale industry.

Opportunities

Exports to regions experiencing shortages due to global supply disruptions.

Increasing exports due to growth in African end user industries. Pledge by the local automotive manufacturing industry to increase its use of locally manufactured metal fasteners.

Outlook

Analysts forecast the global shortage of metal fasteners and strong demand for these products will continue in 2022. Global sales of metal fasteners are expected to have a compound annual growth rate of 4% to reach US$80.5bn by 2027, largely due to ongoing investment in infrastructure projects, and growing vehicle production. At least in 2022, the local metal fastener industry is expected to experience increased demand from the mining and automotive manufacturing industries in South Africa.

Credit intelligence provider Fitch Solutions expects the mining industry will experience growth in 2022 as global metals and minerals prices remain elevated as a result of supply disruptions and higher demand due to the recovery of the world economy. The National Association of Automobile Manufacturers of South Africa expects the local automotive manufacturing industry to grow in 2022. It said in January 2022: “With a GDP growth rate forecast of a moderate 1.8% in 2022, the new vehicle market is expected to continue its gradual recovery during the year, but at a slower pace and at this stage a year-on-year improvement of around 8% in aggregate new vehicle sales volumes is projected for 2022. ” The metal fasteners industry could grow exports to regions experiencing shortages due to global supply disruptions.

Report Coverage

This report focuses on the manufacture and wholesale of metal fasteners nails, rivets, tacks, pins, staples, washers and other non-threaded products, nuts, bolts, screws and other threaded products.

The report includes information on the size of the industry, trade statistics and influencing factors. There are profiles of 39 companies including listed industry players such as Bidvest, Hudaco Industries and Invicta, notable manufacturers including Avlock International, CBC Fasteners and SA Bolt Manufacturers and wholesalers such as Action Bolt, Hilti and Wurth.

Strengths

Distributor partnerships with international manufacturers to supply their products locally.

Government support. Input materials are available in South Africa. Various diverse end user industries.

Threats

Impact of COVID-19 on demand for products.

Inconsistent supply of electricity. Increasing costs of electricity, water and raw materials in particular, pose a threat to the industry’s profitability and sustainability. Poor economic growth affects demand for products.

Weaknesses

Energy-intensive production processes make producers vulnerable to high electricity costs and load-shedding. Machinery has to be imported. Most companies are small.