Written by Mark Dorrington, Product Director, H&C & Forgefix (part of Galleon Fixings), as part of our special 'taking stock of the 2020s' project...
Over the past five years, the UK fastenings and fixings sector has passed through a period of profound disruption and adaptation. As a long-established wholesaler and distributor H&C has observed first-hand how structural shifts – notably Brexit and the wider realignment of trade flows – have reshaped supply chains, cost bases and customer behaviour across the merchant and construction markets.
The Brexit shock: supply-chain strain and cost inflation
Since the UK left the EU and the new trading regime under the EU–UK Trade and Cooperation Agreement (TCA) took effect in January 2021, many UK businesses – including those in fasteners, screws and fixings – have had to navigate a more complex import/export landscape.
For suppliers of building hardware and fasteners, the consequences were immediate. The broader construction materials market saw sharp price increases: iron, steel and other inputs rose markedly, pushing up overall project costs. Supply chain disruption, from customs checks to border delays, increased paperwork and changed rules of origin, created delays and uncertainty, especially where components or products came from or through EU suppliers.
At H&C, our response was to double down on stocking strategy: increasing buffer levels, diversifying sourcing away from single suppliers, and ensuring we could still supply our merchant trade customers even when shipments were delayed or EU routes became more unpredictable. In many ways, the period reinforced the value of well-stocked wholesalers who can absorb shocks and smooth demand spikes – a point echoed by other wholesalers in the sector.
Evolving market dynamics and adaptation
Labour shortages and increased administrative burden post Brexit have also affected the broader construction industry – which in turn influences demand for fixings and fasteners. Contractors and merchants became more cautious: project timelines stretched, budgets were re-evaluated, and many moved to prioritise local sourcing or suppliers who could guarantee reliable delivery, traceability and compliance.
For H&C, this shift played to our strengths. Our inhouse brand (MATE), batch traceability, and emphasis on supply chain resilience and quality helped build trust among customers seeking stability in uncertain times.
At the same time, demand patterns changed. The volatility in traditional construction sparked interest in more predictable refurbishment, maintenance, and retrofit work – which often involves small volume, varied fasteners rather than batch steel orders, reinforcing the value of a distributor with broad inventory and fast turnaround capabilities.
Enter CBAM: what the new carbon-adjustment levy means for 2027 and beyond
Looking ahead, one of the most significant developments for the fastenings and fixings sector is the planned introduction of a UK Carbon Border Adjustment Mechanism (CBAM), scheduled to take effect 1 January 2027.
CBAM is designed to ensure that imported carbon-intensive goods such as steel (used in many nails, screws, anchors, etc.) face a comparable carbon price to domestically produced materials. For businesses importing raw materials or components – or importers of finished fixings – this introduces a new cost dimension: the embodied carbon emissions in the goods will carry a financial liability.
For H&C and similar distributors, this will likely increase the cost base on imported steel-based fasteners. Product pricing may rise, especially for commodity items or fasteners sourced overseas from high emission steel manufacturers. It also raises demand for transparency: customers will increasingly ask for documentation of embedded emissions, origin, certifications, and possibly prefer low-carbon or UK-produced steel fasteners.
The next five years: resilience, opportunity and realignment
Given these pressures and the broader trajectory of the UK and global fastener market, which we do expect to continue to grow, H&C’s projection for the next five years is cautiously optimistic – so long as we and the wider supply chain adapt wisely.
We expect:
• Increased sourcing from lower-carbon or domestically produced steel: as CBAM raises the cost of imports, UK based producers or lower-carbon mills (where carbon pricing is internalised) will gain a competitive advantage. At H&C, our long history, stocking strategy, batch traceability and flexible supply model position us well to thrive in this new environment. As part of our wider Galleon Fixings group, we are already strengthening relationships with lower-carbon steel mills, reviewing sourcing policy, and preparing to offer customers the transparency and reassurance they will demand in a CBAM-aware market.
• Greater demand for certified, traceable fasteners: batch traceability and compliance documentation will become more important; this will benefit distributors like H&C that already offer these as standard.
• Growth in retrofit, maintenance and upgrade markets: given the economic context and rising material costs, more building owners may favour maintenance or refurbishment rather than new builds – a segment often served by fasteners, fixings, and specialised small order products.
• Diversification of raw materials and fastener technologies: pressure on carbon-intensive steel may accelerate demand for fasteners using alternative materials (e.g. aluminium, alloys), or hybrid/specialist fasteners, especially where weight, corrosion resistance or environmental credentials matter.
• Supply-chain resilience as a competitive differentiator: businesses that can guarantee delivery, buffer stocks, and compliance will be more attractive to merchants and contractors navigating volatile materials markets.
At H&C, our long history, stocking strategy, batch traceability and flexible supply model position us well to thrive in this new environment. As part of our wider Galleon Fixings group, we are already strengthening relationships with lower carbon steel mills, reviewing sourcing policy, and preparing to offer customers the transparency and reassurance they will demand in a CBAM-aware market.
While Brexit and CBAM have introduced challenges such as cost inflation, regulatory complexity, shifting sourcing dynamics, they have also accelerated structural change. For those who adapt with foresight, there is an opportunity to build a more resilient, sustainable, and competitive fastenings and fixings supply business.
