Industry Focus >>Introduction
Nestled in the heart of Central
Europe, the Czech Republic stands asa testament to industrial vigour andeconomic dynamism. Its landscapeis a convergence of manufacturing
prowess, innovative construction, anda thriving industrial ecosystem thathas consistently drawn the attentionof economic observers. In this article,
we embark on a concise exploration,
spanning three transformative years
from 2021 to 2023, to unveil the trade
statistics of fastening tools in the Czech
Republic. This voyage will uncoverimport-export dynamics and illuminate
the cr itical industr ies that rely onthese unassuming yet indispensable
instruments.

2021-2023 年捷克緊固工具貿易統計
Fastening Tools Trade
Statistics of Czech Republic

Hardware & Fastener Components - no.61/2024

The Czech Republic, positioned
as a medium-sized, open economy,
derives a significant 72.7 percent
of its GDP from exports, primarily
propelled by the automotive andengineering sectors. Notably, asubstantial 26.3 percent of theseexports find their destination in theEuropean Union (EU), with Germany
serving as the foremost recipient.
Beyond the EU, the United States
ranks as Czech Republic's secondlargest non-EU export destination,
closely following the UnitedKingdom.
However, recent economic indicators
reveal a shifting landscape. Czech GDP
growth, which stood at 3.3 percent
in 2021, moderated to 2.4 percent
in 2022, as repor ted by the Czech
Statistical Office. This deceleration
can be attributed, in significant part, tosurging inflation rates. The inflationary
surge, primarily fuelled by substantial
increases in energy costs resulting fromthe Russia-Ukraine conflict, has beena significant contributor to the GDP
downturn. In 2022, the average inflation
rate soared to 15.1 percent, marking thehighest level since the Czech Republic's
establishment as an independent nationin 1993.
The Ministry of Finance projected achallenging economic scenario in 2023,
forecasting a 0.5 percent decline inCzech GDP. This decline is anticipatedto persist due to the ongoing impactsof elevated inflation rates, continuing
to shape the economic landscape of theCzech Republic.

092 惠達雜誌

Fastening Tools in Czech Republic
Fastening tools, often the unsung heroes in the world of industry, form the bedrock of modernconstruction, manufacturing, automotive, and do-it-yourself (DIY) sectors. These unassuming
tools encompass a wide spectrum of components, ranging from screws and bolts to nuts andrivets, as well as the specialized power and hand tools essential for their application. Let's take acloser look at how these tools have played pivotal roles in Czech Republic's key industries during
the period from 2021 to 2023.

• Construction - Building Dreams and Infrastructure
Czech Republic's construction industry faces challenges due to worsening economic
conditions. High energy costs and inflation resulting from the Ukraine conflict are expected toaffect construction.
The rising prices of materials and energy, along with disruptions in supply chains, areexpected to dampen construction growth in the coming quarters. There's also a shortage oflabour in the Czech Republic, making construction costs higher. Furthermore, uncertainty related
to the Russia-Ukraine conflict and expected monetary policy tightening are affecting investor
confidence, leading to reduced consumption and investment. This decline in demand is likely
to impact new orders for the construction industry. Given these challenges, the constructionindustry was projected to contract by 2.4% in 2023, down from the previous estimate of
3.5%. The market is projected to achieve an AAGR of more than 3% during 2024-2027
supported by developments in the area of transportation, housing and energy sectors.

Industry Focus >>Czech's manufacturing output is poised for substantial growth, projected to reach€203 billion by 2026, a notable increase from €178 billion recorded in 2021. Thissignifies a steady annual growth rate of 1.7%. Notably, Czech supply chains havebeen on an upward trajectory, growing at an average rate of 2.7% per year
since the turn of the century.
In terms of global rankings, as of 2021, the Czech Republic secured the 13th
position in manufacturing output. In comparison, Austria slightly outpaced theCzech Republic with a manufacturing output of €178 billion.
Meanwhile, Italy, France, and the UK secured the 2nd, 3rd, and4th positions, respectively.
Within this thriving manufacturing landscape, fastening tools
have played an indispensable role in upholding precision andefficiency across a diverse spectrum of manufacturing industries.

• Automotive - Driving Growth
Czech automotive market is witnessing a strong rebound indemand from the COVID downturn and post-COVID supply
chain bottlenecks. The market is expected to grow at a significant
CAGR between 2023 and 2030.
Increasing adoptions of electric vehicles and spiking demand
for advanced safety, connectivity, convenience, and driver assist
features are noted to shape the modern automotive industry inCzech Republic. Increasing battery efficiency and EV charging
infrastructure, and handling chip shortages are potential
challenges for auto manufacturers.
The global automotive industry was supposed to enjoy arestart in 2021. However, the pandemic, disrupted logistics chains,increased demand for consumer electronics, adverse weather andthe technological complexity of production have all contributed
to the onset of a global chip shortage. The shortage manifested
itself in full in the second half of 2021, slowing down and, in somecases, even halting car production in Czech Republic and othercountries.
De spite the se ex tensi ve challenge s, the C zech
automotive industry overcame them in 2022 and achieved
good results. After three years of declining production
volumes, it has also once again recorded an increase inproduction of +9.4%. From January to December in 2022, a total of 1,249,281
road vehicles were produced in Czech Republic.

• DIY Enthusiasts - Empowering Creativity
Going beyond their traditional industrial roles, fastening tools have found theirway into the hands of DIY enthusiasts and homeowners, igniting a remarkable
12% annual upsurge in DIY and home improvement projects. These versatile tools
have become the catalysts for individuals to breathe new life into their creativevisions, embarking on ventures that encompass everything from substantial homerenovations to the assembly of furniture and the resolution of minor repairs.
This surge in DIY activities aligns with broader market trends. In the DIY& Hardware Store market, revenues were projected to reach a significant
USD 5.02 billion in 2023. This market exhibits a robust growth trajectory,
with an anticipated annual increase of 4.31% (CAGR 2023-2028). On a global
scale, the lion's share of revenue is generated in China, where the market
was expected to reach a staggering USD 767.20 billion in 2023. Whenassessed relative to the total population figures, each person was expected
to contribute USD 466.90 in revenue in 2023.
This surge in DIY activities not only underscores the growing popularityof hands-on projects but also reflects the expanding role of fastening tools in
empowering individuals to tackle a diverse array of tasks, ushering their creativeideas from conception to reality.

Fastening Tools Trade Analysis(2021 – 2022)
Czech Republic's fastening tools trade landscapewitnessed significant shifts in 2021 and 2022,
affecting both imports and exports. In this analysis,
we delve into the key trends, their implications, andtheir relationship with the top trading partners.

Exports (2021 - 2022):

In 2021, Czech Republic's fastening tools
exports were valued at USD 335.79 million,
which decreased to USD 290.11 million in2022, reflecting a 13.6% decline. This reduction
suggests a changing global landscape for fastening
tools trade, possibly influenced by various factors
such as market demand and competition.

Imports (2021 - 2022):

Impor ts of fastening tool s into Czech
Republic decreased by approximately 17.7%
from USD 449.04 million in 2021 to USD 369.59
million in 2022 which could be inf luenced byshifting market dynamics, changes in demand, orother industry-specific factors.

Top 10 Fastening Tool Exporters toCzech Republic (2021 - 2022):•

Germany: Germany, the largest exporter,experienced a 22.21% decrease in exports
to Czech Republic in 2022. This decline
might be attributed to shifts in demand orcompetition from other suppliers.

•China and South Korea: China sawa 19.04% increase in exports to Czech
Republic, indicating a strengthening
market presence. Conversely, South Korea
faced a significant 66.43% drop in exports,possibly due to changing market dynamics.

•Italy and Austria: Italy maintained
stability in exports, while Austria increased
exports by 17.56%. These variations could
be influenced by market conditions andcompetition.

•Poland and France: Poland experienced
sl ig ht g r ow t h , wh i le F r a nc e saw aconsiderable decline in exports to Czech
R e p u bl ic. M a r k e t p r ef e r e n c e s a n dcompetitive factors may have contributed
to these trends.

•Jap an, the U. S., and Slov ak ia:
Japan's exports decreased significantly,
highlighting a potential shift in marketdynamics. The US saw export growth,which might indicate increased demandfor US fastening tools in Czech Republic.
Slovakia's decline in exports could be
attributed to various factors affecting trade
between the two countries.
惠達雜誌

Hardware & Fastener Components - no61/2024• Manufacturing - Precision and Excellence093

Industry Focus >>Figure 1. Top 10 Fastening Tool Exporters to Czech Republic (2021 - 2022)
Czech's Import Value (million USD)
250.00200.00150.00100.0050.00
0.00•Germany

China

Italy

Austria

PolandFrance

S. Korea

JapanUSA

Slovakia

Import value in 2021

205.19

46.73

22.49

12.06

11.60

18.40

33.53

27.94

6.87

9.93

Import value in 2022

159.69

55.62

22.35

14.17

11.80

11.58

11.31

10.60

8.61

8.17

Hungary, the Netherlands, Switzerland, and Belgium: Hungary's exports grew substantially, indicating competitiveness in theCzech market. The Netherlands, Switzerland, and Belgium experienced declines in exports to Czech Republic, which could be due tochanging trade patterns or economic conditions.

Top 10 Fastening Tool Importers from the Czech Republic (2021 - 2022):
Steady Importers:

Ger many, bei ng a neighbou r i ng cou nt r y a nd asignificant player in manufacturing, continued to be thelargest importer of Czech fastening tools. The modest 0.55%
increase in imports suggests a stable demand for these tools.
This consistency can be attributed to well-established traderelations and the quality of Czech fastening tools.
Italy maintained steady imports, with a 12.45% increase.
The stable relationship between the two countries indicatesa consistent demand for Czech fastening tools in the Italianmarket. Czech exporters should focus on maintaining theircompetitive edge in Italy.
France witnessed a notable 39.49% increase in imports
from Czech Republic, indicating an expanding market. This
growth can be attributed to the quality and competitivenessof Czech fastening tools. Czech exporters should continue
nurturing this market.

Hardware & Fastener Components - no.61/2024

Fluctuating Importers:Slovakia experienced a 9.67% decrease in imports fromCzech Republic. As neighbouring countries, their tradedynamics are closely linked. The decrease may be attributed
to shifts in demand or competition. Czech exporters should
maintain their strong presence in this key neighbouringmarket.

094 惠達雜誌

The Netherlands saw a 16.65% decline in imports from CzechRepublic. This decrease could be attributed to shifting trade patterns
within the European Union or changes in the Dutch market. Czech
exporters should monitor these changes to adapt their strategies
accordingly.

Declining Importers:

Poland witnessed a substantial 49.05% decrease in imports offastening tools from Czech Republic in 2022. This decline may be due
to evolving supply chain strategies or increased competition from othersuppliers. It's essential for Czech exporters to adapt to these changing
dynamics to maintain a strong presence in the Polish market.
Austria saw a 19.21% decrease in imports of Czech fastening tools.
Economic factors and market conditions likely influenced this decrease.
To regain momentum, Czech exporters may need to explore opportunities
to meet Austrian market demands.
Switzerland experienced a significant 43.70% decrease in imports
from Czech Republic. This decline might be due to changes in tradedynamics or preferences for other suppliers. Czech exporters should
explore strategies to regain their position in the Swiss market.
Belgium saw a 46.43% decrease in imports from Czech Republic.
Economic factors and market conditions likely played a role in this decline.
Czech exporters should focus on understanding and addressing the specificchallenges in the Belgian market.

Figure 2. Top 10 Fastening Tool Importers from Czech Republic (2021 - 2022)
Czech's Export Value (million USD)
180.00160.00140.00120.00100.00
80.00
60.00
40.00
20.00
0.00
Germany Slovakia

PolandAustria

HungaryItaly

Netherlands Switzerland

Export value in 2021

156.73

31.26

39.54

14.01

6.26

6.61

8.48

Export value in 2022

157.59

28.16

20.17

11.31

9.22

7.43

7.06

FranceBelgium

11.29

4.07

7.51

6.37

5.69

4.02

Industry Focus >>Hungary experienced a significant 47.43% increase in imports of fastening
tools from the Czech Republic. This surge suggests that Czech fastening tools are
gaining popularity in Hungary, possibly due to their quality and competitive pricing.
It's crucial for Czech exporters to continue catering to this growing demand.
In summary, these fluctuations in trade reflect the dynamic nature of thefastening tools industry. Factors such as market conditions, competition, andchanging trade dynamics play pivotal roles in shaping these trends. Monitoringthese developments can guide strategic decisions in the fastening tools sector.

Second Half of 2023 and Beyond(Forecast):
While the first half of 2023 showed fluctuationsin imports and consistent growth in exports, it's
essential to consider potential trends for the second
half of the year and beyond. Several factors may
come into play:•

Global Economic Conditions: T hefastening tools trade can be influenced
by the broader global economic situation.
Any significant changes in international
economic conditions, such as trade disputes
or fluctuations in demand, could impact
Czech Republic's trade in these tools.

•Continued Demand: The steady growthin exports during the first half of 2023
suggests sustained demand for Czechmade fastening tools. This trend maypersist, especially if the global construction
and manufacturing sectors continue tothrive.

•Trade Partnerships: Czech Republic's
trade relationships, especially with keypartners, will be crucial. Monitoring
developments in these partnerships willbe essential for understanding future tradedynamics.

•Market Adaptation: As global markets
evolve, Czech companies may need toadapt to changing customer preferences,
regulations, and technologies to remaincompetitive in the fastening tools industry.

Fastening Tools Trade Analysis in 2023
The fastening tools trade in the Czech Republic for the first half of 2023
showed notable trends, with potential implications for the second half and beyond.
Here, we delve into the analysis of this period and provide some forecasts.

First Half of 2023 (Jan-Jun):

During the initial half of 2023, Czech Republic's imports of fastening
tools recorded fluctuations. In January, imports amounted to approximately
35.07 million USD, reflecting a 13.1% increase from the December 2022 imports,
which were at 31.07 million USD. However, February witnessed a minor decline,with imports totalling about 34.25 million USD, indicating a 2.3% decrease
compared to January. March witnessed a notable increase, with imports surging
by approximately 20.0% to reach 41.15 million USD. April and May remained
relatively stable, hovering around 41.44 million USD and 34.59 million USD,
respectively. In June, there was a slight decline, with imports totalling about 39.65
million USD.
On the export front, Czech Republic displayed resilience and growth in
the realm of fastening tools during the first half of 2023. Exports to the world
witnessed an overall upward trajectory, starting at approximately 24.72 million
USD in January. This marked a 39.3% increase compared to December 2022. The
positive trend continued, with exports steadily climbing to approximately 29.18
million USD by June, reflecting a 64.3% growth over the six-month period.
These fluctuations and growth trends in both imports and exports underscorethe dynamic nature of the fastening tools industry in Czech Republic in the firsthalf of 2023.

Figure 3. Czech Republic's Fastening Tool Trade Analysis inH1 2023 Import and Export Value (Million USD)
50403020100JanFebMarAprMayJunImports

35.07134.24841.15241.43934.59339.649

Exports

24.72222.13633.17126.38325.3

29.187

Sources:•Czech Republic Construction Market Size, Trends and Forecasts by Sector Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional andResidential Market Analysis, 2022-2026•Czech Republic Automotive Market, Size, Share, Outlook, and Growth Opportunities
2022-2030•

2023 Investment Climate Statements: Czechia, U.S. Department of States•DIY & Hardware Store – Czechia, Statista, 2023•

ITC Trade Map, Trade statistics for international business developmentAs we look to the future, it's essential toacknowledge potential challenges in the global
economic landscape. Factors such as trade disputes,evolving customer preferences, and changing
market dynamics may influence the fastening tools
trade.
In conclusion, Czech Republic's jour ney
in the fastening tools trade from 2021 to 2023
reflected resilience, adaptation, and a commitment
to excellence. The insights gained from thisanalysis serve as a valuable compass for industry
stakeholders, emphasizing the importance ofcontinuous monitoring and adaptation in a rapidlyevolving trade environment. Czech Republic'sperformance in the fastening tools trade overthese three years highlights its potential forsustained growth and success in the years tocome.
As the global economic landscape evolves,
Czech Republic's competitive edge and strong tradeties position it well for continued success in thefastening tools industry. Continuous monitoringof these trends will be vital for strategic decisionmaking in the months and years ahead.

Copyright owned by Fastener World / Article by Shervin Shahidi Hamedani惠達雜誌Hardware & Fastener Components - no61/2024

Growing Importers:095