SUMMER 2026

22 THE DISTRIBUTOR’S

22 THE DISTRIBUTOR’S LINK Eric Dudas Fully Threaded Radio Eric Dudas is managing partner of FCH Sourcing Network and producer of the Fully Threaded Radio podcast and Fastener Distributor Index monthly survey report. Based in semi-rural northeast Ohio, he began his association with the fastener industry in 2006 and was inducted into the Fastener Industry Hall of Fame in 2023. www.fastenersclearinghouse.com/eric@fastenersclearinghouse.com. UNTHREADED: SELLING SCREWS IN THE DISTORTION ECONOMY The AI revolution may be speculative but the construction boom is real. The latest fastener supply chain crunch is being strongly influenced by the exploding data center construction boom. That’s creating headaches for suppliers struggling to keep pace with demand, though most thread merchants will gladly agree it beats a lack of orders. As I wrap up the latest Fastener Distributor Index (FDI) survey for another month, the overall tone remains surprisingly upbeat. Still, it’s impossible to ignore the growing list of concerns. Distributors continue to face shifting tariff policies, advancing inflation, and softness in key sectors, such as automotive. Rising energy costs are adding overhead pressure. Oh yeah - and there’s also a war going on, which continues to impact portions of the global supply chain in less predictable ways. And we can never be sure how the next utterance from “the administration” will impact business. Yet optimism remains remarkably strong. Why? One major reason is the enormous offsetting force of AI-driven data center expansion and its adjoining infrastructure build out. Economists describe market distortion like this as trends or events that alter operating conditions in unusual or unnatural ways. The fastener industry has experienced several instances recently. For example, some distributors overbought imported CONTRIBUTOR ARTICLE “STOP THE PURSUIT. WE’RE OVER BUDGET,” THE ANDROID COP FAMOUSLY ORDERED IN GEORGE LUCAS’ 1971 DYSTOPIAN FILM, “THX 1138”. MEANWHILE, FASTENER DISTRIBUTORS ARE STILL PURSUING PURCHASE ORDERS TIED TO THE AI CONSTRUCTION BOOM. inventory ahead of tariff deadlines, creating temporary gluts and abnormal pricing in certain product categories. Manufacturers responded to demand spikes with longer lead times that resembled outright shortages at times, bringing higher prices in many cases. One FDI respondent this month stated, “Suppliers are quoting much longer lead times, 20% higher prices.” The market is still working through the aftermath. CONTINUED ON PAGE 94