Why This Matters to Distributors: Strong demand and tighter inventories could require distributors to adjust purchasing and replenishment plans. Slower supplier deliveries and rising prices also underscore the importance of monitoring product availability and distinguishing sales gains driven by volume from those driven by price.
Fastener distributors reported strong October sales and greater confidence in demand, even as supplier delays and rising costs continued, according to research by Baird and FCH Sourcing Network.
The seasonally adjusted Fastener Distributor Index fell to 63.3 from September’s 66.6. Researchers attributed the decline to seasonal adjustments. The unadjusted index rose to 64.2 from 63.0, its highest reading since March 2021. October marked the 18th consecutive month of expansion.
Sixty-three percent of respondents reported sales above seasonal expectations, up from 59%. The share expecting higher activity in six months increased to 63% from 44%; 30% expected similar conditions and 7% anticipated a decline.
Supply pressures persisted: 47% reported slower supplier deliveries, while 23% described their inventories as too low, up from 11%. Thirty-seven percent reported higher prices than the previous month, and 83% reported increases from a year earlier.
Respondents cited record bookings, new business and growth tied to construction and data centers. They also raised concerns about fuel, freight, and tariffs.
The monthly survey covers North American fastener distributors.
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