Written by Gary Henderson, Chair of BIAFD, as part of our special 'taking stock of the 2020s' project...
Our focus at BIAFD is about the future for our members and what’s in store for the next five years.
Here are some of the key areas we’ll be focusing on;
CBAM and Regulation
The EU is firmly behind implementing its Carbon Border Adjustment Mechanism (CBAM) with costs being incurred from 1 January 2026, despite the costs being unknown and amendments unapproved just a few weeks from this deadline. With the UK following suit in 2027 it’s certainly an area that’s going to require even more attention from every business in the fastener supply chain, whether they import or export directly or not. We’re anticipating more general regulation, reporting and traceability requirements across fastener products in addition to this.
Geopolitics
Global business was relatively stable five years ago but a lot has happened in that time; notably the Covid pandemic, Russia\Ukraine conflict and the tariff wars. There are global tensions that we’re aware of that could significantly affect global fastener supply over the next few years. There’s also the potential for others that we aren’t expecting. The most successful businesses will be those that are able to react the quickest to any disruption.
Global business was relatively stable five years ago but a lot has happened in that time... The most successful businesses will be those that are able to react the quickest to any disruption.
UK politics
The decisions made my UK Government have a significant bearing on which industries will thrive and which won’t. These have a direct impact on the requirement for fasteners and where our members’ sales come from. Indications are Defence, Clean Energy and the Electricity Grid infrastructure are areas that will be strong over the next few years, while Oil & Gas is in decline. There is also a commitment to increase housebuilding from the current government. There’s also a possibility that we could see a new party come into power in the UK in the next five years and change priorities.
AI and Automation
AI is still a hot topic but it’s difficult to see it having a sudden disruptive impact for fastener distributors. Adopters will see oper ational improvements from automation and efficiency and may be able to offer improved service to their customers and gain an advantage in the market. Improved decision making could trans form procurement and stockholding. What are likely to change are the skills required to take advantage of new technologies.
Risk management
One thing is certain and that is disruption is the new normal and risk management should be high on the agenda for every business. We now have to consider risks we thought were pretty farfetched and be prepared to adapt. Covid is the prime example but the JLR cyberattack earlier this year is another. It’s not enough to think about your own business, you have to consider the entire supply chain… and beyond. Our role at BIAFD is to make sure our members are better informed to help them navigate the challenges that lie ahead. It looks like there could be plenty heading our way.
There are more views and opinions in Torque Magazine's 'taking stock of the 2020s' project online.
