Innovation > Not just something for the R&D department

As has been noted, acquisitions characterise turbulent times, like the ones we are experiencing. They took a while to get going, but 2021 has seen an abundance of buy-outs in different corners of the industry.

September saw Element Solutions Inc, owner of MacDermid Enthone Industrial Solutions, acquire surface finishing chemicals provider Coventya. The same month saw Bufab spend $26 million on US fastener and C-Class component distributor Components Solutions Group, Inc (CSG). The month prior saw some of the world’s largest steelmakers – China’s Ansteel and Ben Gang Group Corp, begin a merger… the list goes on.

Aside from acquisitions, these unsettled times have also opened up new opportunities.

For example, the DIY market has not been particularly well known for being a mature e-commerce market. However the well documented rise of DIY has attracted the attention of some big players. The UK’s Very – a £2.1 Billion online retailer – is now planning to ramp up its DIY business. It probably won’t be the last.

Talking of new opportunities, reshoring – at least on a relatively modest scale – has been a mini-trend. In the US, Nucor announced a new $100 million melt shop at one of the Company’s existing bar mills in the Western United States. With the capacity to produce 600,000 tons annually, the melt shop will meet anticipated demand for local steel from the US market.

Turbulence has also revealed where there are gaps in the market. Shipping providers have set up new routes to try and meet some of the extra demand and get goods to certain markets quicker. We’ve also seen routes open up between Ireland and Europe, where once they would have sent goods via the UK.

Despite the consistent characteristic of the fastener and tool trade, there have been significant shake ups in those areas identified above and elsewhere too.

This isn’t an extended pitch to you to sign up for our email newsletter to stay up to date with all the news (honest guv), but this period is being characterised by fast moving opportunities and changes. The challenges for businesses include keeping up with the pace of change, innovating quickly enough to fill new gaps in the market… and knowing when to sit tight.