Demand in the fastener and fixings sector has continued to follow the general trends across merchants, with continuing soft demand driven by the sluggish levels of construction and RM&I activity. Supplies continue to be stable both in terms of availability and pricing.

The government’s much vaunted commitment to build 1.5m new homes by 2029 continues to make headline news, but the reality on the ground is yet to see a step change in the rate of new build construction.

The fastener and fixings sector supply chain is heavily driven by Far East sourcing and, as a result, can be slow to respond to sudden and dramatic upturns in demand. However, the sector generally carries many months of stock and it is anticipated that the expected upturn can be accommodated by suppliers. A return to Far East shipping using the Suez Canal rather than the Cape of Good Hope route would further improve resilience in the event of a surge in demand.

The US tariff situation continues to change almost daily. At the time of writing, the impacts of US tariffs on Chinese products have yet to result in any noticeable knock-on effects on the UK supply chain. The situation continues to be closely monitored.

Government consultation is continuing on the planned Carbon Border Adjustment Measure (CBAM) for the UK. Legislation is now being prepared and the planned introduction date of  January 2027 now seems fairly certain.

This measure, while positive from an environmental perspective, will result in higher costs for fasteners and fixings imported from the Far East. How large the impact will be is uncertain, and will only become clear once the legislation is published, but double-digit increases seem likely.