GOVERNMENTS/ASSOCIATIONS/FASTENER GROUPS 

. As the most specialized fastener related association in the region, could you please talk about related events/activities EFDA has successfully given and achievements EFDA has made in 2017? 

EFDA was successful to reduce the burden on EU fastener importers created by the EU licensing system. Since June 2016 EU importers of certain steel products, including fasteners, need a special license from their national authorities to bring the products into the EU – from any country worldwide. The data collected through this licensing system is supposed to serve EU manufacturers to reinforce a request for a new antidumping investigation with regard to imports of steel fasteners from China.

The licensing system created a huge administrative and financial burden for fastener importers. EFDA and its national member associations engaged in several activities with the European Commission and national authorities to support importers. Due to a series of interventions, including a meeting with the head of cabinet of EU Trade Commissioner Malmström, we were successful to mitigate the effects on our businesses: The threshold for a license requirement was raised from 2,500 kg net weight to 5,000 in June 2017.

I would further like to mention our new brochure ‘Securing the Future – European Fastener Distribution in the 21st Century’, which EFDA published at the beginning of the year. EFDA is deeply engaged in promoting the value of fastener distributors – especially its value to the European industry. The brochure highlights the absolutely essential role fasteners distributors fulfill whenever fasteners are needed. It shows that fastener distributors manage increasingly complex, global supply chains and serve European industry by professionalism and efficiency.

. (Following question 1) What positive benefit and influence have these events/activities or achievements generated over your association members and other associate industries? 

As some of our members report, the increase of the threshold for a license requirement reduces the administrative burden for importers considerably. This lobby activity shows very clearly how EU fastener distributors directly benefit from EFDA’s activities.

EFDA uses the new brochure to better explain the value of our business sector to decision makers at national and EU level. With the brochure we make it clear to people who are no fastener experts how important fastener distributors are for the trouble-free functioning of the European industry. This is especially important when it comes to legislation regarding the imports of fasteners into the EU, e.g. antidumping investigations. I am convinced European fastener importers will profit from this investment.  

. According to your observation, what is the major industrial development trend in the entire EU fastener market? To which industry sector are fasteners in the EU mainly delivered and the approximate proportion of delivery to each of these major industry sectors? 

We can see a strong trend to professionalization in the fastener distributors business. Modern warehouse and logistic systems require professionalism. High investments of many European fastener distributors in the automation of the logistic processes are a prerequisite to satisfy the growing requirement of industrial customers concerning flexibility, rapidity and process safety.

Digitalization requires professionalism. It will affect our business in many ways. Catchwords of digitalization are e.g. data management, machine-to-machine communication, and automated processes. All of this will change our workplace fundamentally. To handle digitalization is our biggest challenge in the near future.

Also, the internationalization of our business requires professionalism. Purchase and sale are becoming increasingly global. Many distributors already established an international network of branches or made worldwide company acquisitions to handle this trend.

The major industries delivered by fastener distributors in the EU are the aviation, construction and mechanical engineering industries.

. We observed that the distribution and logistics support systems in the global fastener industry have been focused more on the establishment of more intelligent automated warehousing and distribution systems and many European companies are taking the lead as well. What is your opinion toward such a development? Is this development trend a challenge or opportunity for fastener distributors who need to obtain fast/efficient executing capability and ensure high quality of fasteners at the same time? What is your opinion toward this?

The trend toward professionalization requires commitment to the systems, equipment and people that ensure seamless, effective support to customers wherever in the world they are located. This implies large investments, e.g. in intelligent automated warehousing and distribution systems. Companies which take up this challenge can be very successful. Others could face severe problems. In many cases only globally oriented and financially strong companies will be able to go this way and satisfy the growing demands of their customers. The challenges will be even bigger for many small and medium-sized companies. I assume that the trend towards concentration in the fastener industry will accelerate in the coming years.

. Many EFDA members have been collaborating with Asian suppliers for years. Do you have any new expectation toward the continuous future collaboration with theses suppliers? And, does EFDA have any plan to further reinforce and strengthen the collaboration and partnership with these suppliers from Asia?  

We expect the collaboration between EU fastener distributors and Asian supplies to further grow in the next years. For EU fastener distributors the Asian market will become more and more important as supplier of special parts and more complex products.

EFDA itself, however, has no influence on individual business developments of EU fastener importers. It is simply not EFDA’s task. What EFDA can, and will continue, to do is advocate for reliable political and economic conditions for EU fastener distributors to further develop their business – for example with regard to EU trade defense policy and especially antidumping duties. EFDA is supporting its members on this way.

. What is your opinion and analysis of EU’s fastener import/export volume and value calculated from 2016 through the most recent month of 2017? Do you think there may appear some significant improvements in the future fastener import/export volume and value of the entire EU?

After the removal of antidumping duties of iron and steel fasteners from the People’s Republic of China in February 2016, imports from China have increased. However, imports stagnated for the last quarter of 2016 and then developed in a very unstable manner during the first half of 2017. There has been an increase of imports from China since March; however the total amount of imports is still far away from what we had ten years ago. Imports from other Asian countries have continued to develop steadily during the same period.

. What is your expectation and prospect toward the fastener distribution market of the EU in 2018? Does EFDA have any plan to promote and create a better fastener distribution environment for 2018?

We expect continued growth in 2018 as the fastener market is developing well and EU fastener distributors show a high degree of flexibility and professionalism. EFDA’s job will be to advocate for fair and free trade in an open marketplace. We will continue to inform our members about any measures planned by EU manufactures or the European Commission to impose trade barriers such as antidumping duties, and we will do our best to make sure that decision-makers are aware of the interests of our industry.

. As the President of EFDA, could you please talk about how you would like to do in the upcoming new year to lead your association members to maintain their competitive edge in the global fastener market and voice for your members’ interests? 

As I mentioned before, EFDA does not interfere in the day-to-day business of the companies it represents. But we offer our national member associations and their member companies a platform to exchange views and opinions and get first-hand information from decision-makers in Europe. A central event for our business sector is the European Fastener Distributor Conference. The conference is held every three years and brings together fastener importers, wholesalers and distributors from all over Europe. It is a high-level event of the industry not to be missed. The next conference will be held from 13 to 15 June 2018 in Rotterdam in the Netherlands.