Mexico - Nails, Tacks, Staples, Screws And Bolts - Market Analysis, Forecast, Size, Trends and Insights
Nail, Screw And Bolt Market in Mexico: The Growth To Soften Against Uncertainty In The Automotive Industry
IndexBox has just published a new report "Mexico - Nails, Tacks, Staples, Screws And Bolts - Market Analysis, Forecast, Size, Trends and Insights". Here is a summary of the report's key findings.
The market value for nails, tacks, staples, screws and bolts in Mexico stood at $X in 2017, remaining relatively stable in the previous year. This figure reflects the total revenue of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). From 2007 to 2017, the market illustrated a mixed trend pattern: after a notable decline seen in the market value in 2009, it grew over the next three years, reaching its highest level of $X in 2012. The next year it turned downward, experiencing negative dynamics through to 2017, except for slight fluctuation in 2015.
In physical terms, nails, tacks, staples, screws and bolts consumption in Mexico totaled X tonnes in 2017 (IndexBox estimate), which was X tonnes (X%) lower than the year before and X tonnes (X%) less than the highest level of consumption, achieved in 2011.
The Automotive Industry – Key Fastener Consuming Industry In Mexico – Face Challenging Times
Nails, tacks, staples, screws and bolts constitute basic items used as an integral component part in many end-products across almost all industry sectors. Key consumer industries include commercial mechanical engineering, vehicle manufacturing, the aviation sector, as well as residential, industrial and infrastructure-based construction.
Manufacturing in Mexico is experiencing a measured growth, driven by improving conditions in the domestic economy and an upswing in consumer spending and industrial manufacturing in the U.S., which remains a key export market for cars and automotive products, machinery and intermediate assemblies from Mexico. All those sectors require fasteners to be used, therefore, the demand from the U.S. makes significant contribution into Mexican fastener consumption.
The automotive industry, which comprises a significant share of Mexican industrial exports, remains a key market for bolts and fasteners in the country. Thanks to the NAFTA agreement, Mexico enjoys profitable conditions for exporting cars to the U.S. and Canada. This, along with the availability of rather low-cost and skilled workforce, attracted major car manufacturers in the U.S., as well as European manufacturers aimed at the North American market, to place production facilities in Mexico.
However, the growth of the Mexican automotive industry has slowed down over the last couple of years, due to a slowdown of the growth of new car sales in the U.S. Despite the U.S. car markets are to benefit from increased demand for car trips due to low gasoline prices, strong employment and income growth, car sales are likely to slowdown prom current peak in the next two to three years. The problem is that the consumers have already bought new cars for replacement, which limits the growth in demand and increases the competition in the lower price segment by flooding the secondary market with a large number of used cars. The global car market has also softened its growth amid uncertainty caused by a slump in oil prices and incomes in many commodity-exporting countries.
The Market Is Projected To Expand Modestly Over The Next Decade
In the medium term, the growth of the American car market is set to resume, as the U.S. economy continues to grow robustly, propelling consumer spending. However, for the Mexican car industry, there is still some kind of uncertainty from a possible renegotiation of the NAFTA agreement, which could potentially worsen trade conditions for the car exports. Furthermore, president Trump’s administration puts its efforts to stimulate car producers to return their manufacturing home. This will definitely hamper any further expansion of facilities of American car manufacturers in Mexico, which will make an adverse effect on the Mexican car industry.
As for the other industries, and especially the demand that comes from the domestic industries, the potential for the growth of the fastener market remains very limited. According to the World Bank’s forecast, the growth of the Mexican economy will be very moderate, fluctuating at a level of approx. X% per year in the immediate term. This, in turn, will make only modest growth in terms of domestic industries feasible. On the other hand, an expected reversion to positive investment growth is also projected to support the economy in the medium term, while the growth of private consumption is expected to languish at a lower rate than in recent years. This will also affect the Mexican construction industry, which is also set to grow rather slowly, pressured by uncertainty and measured economy growth.
Given all the above-mentioned assumptions, only moderate growth of the fastener market is expected in Mexico. Driven by increasing demand for nail and bolt in Mexico, the market is expected to continue an upward consumption trend over the next eight-year period. According to the IndexBox forecast, market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +X% for the eight-year period from 2017 to 2025, which is projected to bring the market volume to X tonnes by the end of 2025. This forecast is based on a general assumption of trade conditions and access to the American market will not worsen in the immediate term; therefore, Mexican exports will not suffer heavily from political changes. This remains a major issue for Mexican industries and the fastener market in particular.
Do you want to know more about global nail and bolt market? Get the latest trends and insight from our report. It includes a wide range of statistics on:
- nail and bolt market share
- nail and bolt prices
- nail and bolt industry
- nail and bolt sales
- nail and bolt import
- nail and bolt export
- nail and bolt market forecast
- nail and bolt price forecast
- key nail and bolt producers
All data provided in this article covers the following products:
HS X - Nails, tacks, drawing pins, corrugated nails, staples (not those of heading no. X) and the like, of iron or steel, with heads of other material or not, but excluding articles with heads of copper
HS X - Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel
HS X - Copper, nails, tacks, drawing pins, staples (not those of heading no. X) and the like, of copper or iron or steel with heads of copper; screws bolts, nuts, screws hooks, rivets, cotters, washers
HS X - Aluminium; nails, tacks, staples (other than those of heading no. X), screws, bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers and similar articles
Source: IndexBox AI Platform
This report provides an in-depth analysis of the nail and bolt market in Mexico. Within it, you will discover the latest data on market trends and opportunities by country, consumption, production and price developments, as well as the global trade (imports and exports). The forecast exhibits the market prospects through 2025.
Making Data-Driven Decisions to Grow Your Business
A Quick Overview of Market Performance
Understanding the Current State of The Market and Its Prospects
Finding New Products to Diversify Your Business
Choosing the Best Countries to Establish Your Sustainable Supply Chain
Choosing the Best Countries to Boost Your Exports
The Latest Trends and Insights into The Industry
The Largest Import Supplying Countries
The Largest Destinations for Exports
The Largest Producers on The Market and Their Profiles
We can help you conduct market research and write a report using the most reliable data