Fasteners and Class C Component Supply

Falcon supplies fasteners and inventory management services to manufacturers in North and South Carolina, Kentucky, and the surrounding areas.

Charlotte Office

10715 John Price Road
Charlotte, NC 28273

Phone: 800.438.0332

Mobile: 704.588.4740

Mailing Address

P.O. Box 7429 | Charlotte, NC 28241-7429

Phone: 704.588.4740

Fax: 704.588.5753

Kentucky Office

11536 Commonwealth Drive
Louisville, KY 40299

Phone: 502.266.6292

Fax: 502.526.5567

  • rising costs

Are We Back to Material Cost Inflation?

One “benefit” from our worst recession in over 80 years was that commodity costs have been stable to down. It looks like that is about to change.

Many of the standard steel fasteners and large quantity specials are coming from Taiwan, China, and other Asian countries. Here is a quote from an industry publication (TR Fastenings) about the efforts of the Taiwanese government to reduce pollution:

“The Taiwanese government has radically tightened controls over the discharge of waste effluent into water courses following a series of incidences late in 2013. As a result of the clampdown electroplating plants have closed throughout Taiwan, with some fastener suppliers suggesting 80% of plants are currently unavailable to process fasteners. The inevitable short term result is substantial increases in lead times for plated fasteners – estimates vary between 30 and 60 days currently and plating costs increased by, reports say, typically 30%.”

Nickel is the key cost driver of 300 series stainless steel, commonly referred to as “18-8”. Nickel prices have reached a two year high this month. The cost since January has increased by over 30%.

It is hard to determine the cause of this rapid increase. Is it demand driven or trader speculation? The current unsettling situation in Eastern Europe does not help. Russia is home to the world’s largest nickel mining operation.

We need to plan for both cost and lead time increases as we move forward. If you are a customer, this is a good time to discuss your needs with your respective account manager.

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Reliable Stock™ Lean VMI Solutions by Falcon

Falcon’s Reliable Stock™ lean VMI program delivers 100% production uptime efficiency and reduces your lead times, while lowering your overall inventory investment in class C production components and fastening supplies.
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By | 2017-03-21T12:00:35+00:00 May 28th, 2014|Categories: Lean Learning|Tags: , |Comments Off on Are We Back to Material Cost Inflation?

About the Author:

Don joined Falcon in 1997 as an officer and minority partner. In 2008 Don purchased the company and became sole owner and President. Don has been involved in industrial fastener distribution for over 40 years and considers customer support his primary responsibility. He has been actively involved in numerous trade associations over his career including serving on the board of the NFDA, CBNSA and SEFA.