Fastener Distributor in Africa
South African metal fasteners distribution sector consists of local distributors and wholesalers of African manufactured fastener products as well as imported bolts and screws. Key fastener users include the mining, automotive, construction, rail, energy, agriculture and manufacturing industries.
Fastener distribution in Africa has centred around South Africa particularly Johannesburg, Capetown and Durban and consists of Small to Medium Enterprises that have organisational and managerial flexibility and an ability to operate in niche markets and have the continuity of family ownership.
Many fastener distributors have seen a decline in profits to maintain market share in the presence of fierce competition. However, several successful companies have been able to seize opportunities and increased sales and consolidated gains.
In many instances, fastener distributors have pursued a strategy focused on technology, organisational and managerial innovation. Offering both services and warehouse logistics to customers has the consequence of blurring the boundaries between production departments and distribution warehouses. The fastener distributor becomes part of the client’s supply chain and is integrated into the operational processes shifting competition in favour of innovation, customer proximity and brand strength. Fasteners and fixings that have frequently been sold through distributors, but as a result of challenging trading conditions, has resulted in some manufacturers now selling directly to end-users.
Cheap Fastener Imports
South Africa has experienced severe Industry Challenges and weak economic growth followed by cheap imports from Asia. The African fastener industry both distributors and manufacturers are facing harsh trading conditions. The prices of forming wire used in the production of steel fasteners have been highly volatile while constrained electricity supply and increasing electricity costs have affected both sectors.
Africa as a whole has Insufficient transportation infrastructure which has led to distribution disruptions and higher costs.