The Russian fasteners and tooling market remains attractive to foreign players due to a number of vacant segments.

According to expert estimates, the Russian fasteners and tooling market is currently showing a stable growth rate of about 5% per year. Given the plans announced by the President of the Russian Federation for new construction and modernisation of the existing infrastructure, the demand for fasteners and accessories will show higher growth rates in the coming years. At the same time, there are still segments of the market where customer demand is not fully satisfied.

Existing market outlook

At the end of 2023, almost 359,000 tonnes of fasteners and accessories of various types were produced in Russia, according to a study by TK Solutions. Compared to 2022, this indicator increased by 24%. The most demanded types of fasteners are nails, self-tapping screws, dowels, bolts, screws, and anchors. Over the last 3-5 years, there has been a downward trend in demand for nails: consumers prefer self-tapping screws.

As of 2022, the majority of Russian fastener and tooling manufacturers are focused on large batches of products, not only from assembly companies (automotive, machine-building, and shipbuilding industries) and construction companies but also from retailers. And they can be understood - in a dynamically changing external environment, such orders ensure stable utilisation of production capacities and, accordingly, preservation of jobs. Against the backdrop of the intensification of individual housing construction, the demand for small batches of fasteners and tooling will grow in the coming years, which opens a window of opportunity for new market players.

The share of domestic products in the fasteners market has slightly increased relative to 2022 and, according to expert estimates, is about 35-40%. The fact is that despite the presence of Russia's powerful metallurgical industry and its leading position in metal production, it is more economically feasible to produce certain products (for example, complex hardware) abroad. Despite logistics and customs costs, this will be more profitable than modernising Russian production facilities. Consecutively, the share of Russian-made tooling is about 70-75%.

As early as 2022-2023, a number of Russian fastener and tooling manufacturers are facing the need to repair and upgrade their equipment. More than 65% of the global machine tool fleet suitable for the production of these items is manufactured in Taiwan, which joined the anti-Russian sanctions. This significantly complicates maintenance and modernisation of existing machine tools. Some companies were forced to switch to equipment manufactured in countries that did not support the sanctions pressure, while others worked out the issues of supplying equipment and spare parts via third countries.

Sector Forecasts

The construction sector will be the driving force behind the development of the fasteners and tooling market in the coming years. In 2023, an absolute record was set for housing commissioning in Russia, which exceeded 110 million square metres. However, builders have ambitious goals - to commission at least 120 million square metres of housing annually by 2030. Undoubtedly, such a large-scale task will require a significant volume of fasteners and tooling, among other important products. The demand for individual housing is also growing; for the second year in a row, its output exceeds the output of apartment housing. Moreover, the authorities place a special emphasis on individual housing as part of the development of rural areas. Among the consumers of fasteners and accessories will be property developers and those who build houses independently (by economic method).

However, it is not only housing construction that will have a positive impact on the fasteners and tooling market. The government has also identified new infrastructure construction (extension of the M12 motorway to Tyumen, development of high-speed railways), modernisation of airports, construction and repair of healthcare facilities among the strategic development vectors. The construction of these facilities will require significant volumes of fasteners.

Other sectors of the economy should not be discounted: mechanical engineering, automotive, shipbuilding, and furniture industry. According to the results of 2023, industrial production began to recover, showing a growth of 3.5% relative to 2022. In all these sectors, quality fasteners are essential, opening new opportunities for foreign players.

Why exhibit at Fastenex 2024

Currently, the Russian market for tooling and fasteners is extremely interesting for new suppliers. Industry and construction require significant volumes of these products, while domestic manufacturers are not fully prepared to meet the demand. Therefore, companies that want to gain a foothold in the Russian market have a unique opportunity to enter and establish themselves in free segments.

Fastenex is the only international B2B exhibition of fasteners and industrial supply in Russia, and will help you to do stablish connections with influential buyers. It brings together manufacturers, suppliers, and consumers of these products. In 2023, it was visited by 4,100+ unique visitors representing various sectors of the economy — from construction to manufacturing and retail. Construction fasteners (64%) and industrial fasteners and hardware (58%) attracted the most interest.

It should be noted that 67% of visitors hold managerial positions in their companies, and 93% of specialists directly influence purchasing decisions. This significantly simplifies the negotiation process—agreements with new partners can be reached directly on the exhibition floor, bypassing lengthy communications and approvals.

Trends And Perspectives Of The Russian Market For Fasteners And Industrial Supply