Hardware Manufacturers NAICS 332510

Dec 23, 2025 - Home Improvement Spending Slows

• Home Depot’s third quarter results revealed ongoing weakness in home‑improvement spending, with the retailer reporting lower profit and cutting its full‑year outlook as the downturn in DIY and big‑ticket projects persists, The Wall Street Journal reports. For home hardware manufacturers, the spending slowdown presages a challenging demand environment heading into 2026. Slower consumer spending, a soft housing market, and fewer weather‑driven repair projects are reducing sell‑through of tools, fasteners, fixtures, building materials, and related hardware categories. Manufacturers supplying these products should expect lower order volumes, tighter inventory management from retailers, and more cautious replenishment cycles. At the same time, Home Depot’s modest overall sales growth suggests that Pro‑focused categories may hold steadier, benefiting suppliers tied to professional contractors rather than DIY consumers. Looking ahead, home hardware manufacturers can anticipate muted demand, margin pressure, and a shift toward value‑oriented and Pro‑driven product lines until housing activity improves.
• 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 6.2% in September compared to a year ago, after dipping 0.8% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices, which had been relatively flat in recent years, began climbing this spring as US import tariffs roiled the metals markets. Employment by hardware, spring, and wire product manufacturers shrank 3.1% year over year in August, while average wages at fabricated metal products manufacturers rose 4.1% YoY in September to a new high of $27.59 per hour, BLS data show.