Economic distress in the wake of the COVID-19 shutdown suggests deteriorating trade relations between China and the U.S. according to the newest Fastener Distributor Index (FDI) survey, completed April 3, 2020.
The survey of North American privately held distributors of industrial fasteners also revealed that respondents feel the turmoil would result in only minor shifting away from China as a key supply source. In line with that view, few respondents believe the pandemic will result in increased domestic manufacturing.
“This is not what we were expecting to hear,” says FDI manager Eric Dudas. “Most of the talk we’ve been hearing is people saying they expect to see an increase in re-shoring as a result of all this.”
But the results of the March survey show that distributors are expecting a near return to the status quo in many ways once the current catastrophe is past. Details of the latest FDI will be presented during episode 151 of Fully Threaded Radio as R.W. Baird analyst David Manthey joins newsman Mike McNulty on the Fastener News Report.
Also appearing on the upcoming FTR episode is Harry Moser of the Reshoring Initiative, a long time champion of American manufacturing, who will present his take on the 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. Request an invitation: www.fdisurvey.com.