Hardware Manufacturers NAICS 332510

Aug 23, 2025 - New Construction Becoming More Affordable

• The US housing market is shifting toward new construction, as the price premium over existing homes hit a record low of 7.8% in the second quarter as builders held pricing steady while existing home prices continued to rise, Hardware + Building Supply Dealer (HBSD) reported in August. According to the latest Realtor.com New Construction Quarterly Report, newly-built homes are more plentiful than in recent years and offer better value on a per-square-foot basis than existing homes, especially in the South where supply is rebounding fastest. The median list price for a newly-built home was $450,797 in Q2, essentially flat year over year, while the median existing home price rose 2.4% to $418,300. Nationally, new builds averaged $218.66 per square foot, compared to $226.56 for existing homes. New home construction drives demand for home and builders’ hardware.
• Tariffs are pushing up remodeling costs, causing some homeowners to reconsider making upgrades, CBS News reports. Tariff-inflated costs for materials can add up quickly, leading to a typical price increase of around $10,000 per home renovation project, according to the National Association of Home Builders. Most materials used to build US homes, including hardware, are imported, with China and Mexico being the largest suppliers. A trade deal negotiated with China in June sets 55% tariffs on Chinese imports – high but significantly lower than the 145% tariffs previously imposed by Trump. Meanwhile, imports from Mexico face a 25% tariff. Because US hardware manufacturers compete with less expensive imports, tariffs may level the playing field somewhat. However, higher prices for metals due to stiff tariffs are raising costs for hardware makers that source materials from overseas.

• Tariff and housing cost concerns are causing confidence among US home builders to decline, the National Association of Home Builders reports. Builder confidence in the market for newly built single-family homes measured 42 in February, down five points from January and the lowest level in five months, according to the NAHB/Wells Fargo Housing Market Index (HMI) released on February 18. “Uncertainty on the tariff front helped push builders’ expectations for future sales volume down to the lowest level since December 2023,” said said NAHB Chairman Carl Harris, adding “Incentive use may also be weakening as a sales strategy as elevated interest rates reduce the pool of eligible home buyers.” New home construction drives demand for home hardware from building materials distributors and hardware stores.
• Producer prices for hardware manufacturers are at record high levels, rising 6.4% in July compared to a year ago, after falling 0.9% in the previous July-versus-July annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices, which had been relatively flat in 2023 and 2024, began climbing this spring as US import tariffs roiled the metals markets. Employment by hardware, spring, and wire product manufacturers shrank 4% year over year in June, while average wages at fabricated metal products manufacturers rose 3.2% YoY in July to a new high of $27.26 per hour, BLS data show.