The Fastener Distributor Index (FDI) in March asked respondents to weigh in with their feelings about operating conditions as the COVID-19 hysteria began to hit North America. With stronger than average survey participation, 62% of respondents said there would be either a minor or major shift of manufacturing back to the U.S. as a result of issues arising from what has become known as “the pandemic“.
Respondents also clearly feel that there will be a shift away from China, as 79% indicate they expect either a major or minor move away from using China as a source.
But the seemingly dramatic results could be offset by a broader feeling of indifference, as nearly half of respondents say that long term economic trends will not be impacted by the current virus situation.
Harry Moser, founder of the Reshoring Initiative, commenting about the trend in reshoring in general said, “For fastener distributors, if the assembly of a car or a refrigerator or something else that requires fasteners shifts back to the U.S., then there’s a bigger market for distributors whether they’re selling domestic or imported fasteners.”
Moser appears on episode 151 of the Fully Threaded Radio podcast during an extensive conversation on the subject. Also during the podcast, R.W. Baird analyst David Manthey joins Mike McNulty on the Fastener News Report, with in-depth coverage of the FDI survey report.
All privately held North American fastener distributors are welcome to participate in the FDI which opens its brief survey for input at the end of each month.