Hardware Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 510 hardware manufacturers in the US primarily produce metal hardware, including hinges, handles, brackets, keys, and locks. Firms typically develop and engineer products and systems designed for specific applications, such as aircraft, appliances, motor vehicles, or construction. Large firms produce related products like tools and electronic security products. Other related products include nuts, bolts, screws, rivets, washers, nails, and spikes.
Private Label Competition
The commodity status of many hardware products like hinges and basic locks creates ripe opportunities for private-label goods and low-priced imports as differences in quality are marginal.
Variable Material Costs
The cost of raw materials for hardware products, which include steel, zinc, and brass, can vary and affect margins and cash flow.
Industry size & Structure
The average hardware manufacturer employs about 59 workers and generates about $19.2 million annually.
- The US hardware manufacturing industry consists of about 510 companies that employ about 30,000 workers and generate between $9 billion and $10 billion annually.
- The industry is highly concentrated; the top 50 companies account for about 80% of industry revenue.
- Large firms, which include Allegion, TriMark Corp, and The Hillman Group, may offer a portfolio of related products.
Industry Forecast
Hardware Manufacturers Industry Growth
Recent Developments
Feb 23, 2025 - Wages Rising Amid Falling Sales
- Producer prices for hardware manufacturers stayed flat in December compared to a year ago after dipping by 0.9% in the previous December-versus-December annual comparison, according to the latest US Bureau of Labor Statistics data. Following a steep runup that began in 2021 and peaked in February 2023, industry producer prices have essentially plateaued. Employment by the industry declined 4.4% year over year in December, while average wages at fabricated metal products manufacturers rose 4.4% YoY in January to a new high of $26.80 per hour, BLS data show. Sales for fabricated metal products companies sank 19.7% in the third quarter of 2024 compared to a year ago and were down 2.7% from Q2, per data from the Census Bureau.
- 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.
- US manufacturers have a lot to lose should a trade war erupt between the US and its top trading partners. President Donald Trump has vowed to impose a 25% tax on all imported goods from Mexico and Canada, along with an additional 10% tax on imports from China, as one of his first orders on taking office. Tariffs on Mexico and China would have widespread ramifications for US manufacturers, making it more expensive to produce goods that use foreign components . However, protectionist tariffs could benefit domestic producers such as hardware manufacturers that compete with foreign manufacturers of the same products. Still, economists and other tariff skeptics say if the threatened tariffs take effect, US consumers and businesses would end up footing the bill. The US is a net importer of hardware, primarily from China and Mexico.
- Analysts and building-products executives are forecasting a rebound in home renovations in 2025, The Wall Street Journal reported in October citing a new outlook from the Joint Center for Housing Studies (JCHS) at Harvard University. The JCHS’s Leading Indicator of Remodeling Activity (LIRA) forecasts repair and renovation spending will return to growth next summer and that spending should reach an annual rate of $477 billion by next October. That would approach the record annual rate of $487 billion reached a year ago, before high interest rates dampened activity. Falling interest rates and sharply rising property values will make it less expensive for US homeowners to tap home equity loans to pay for big projects, including new kitchens and bathroom remodels, driving demand for tools and home hardware. Lower rates should also boost new home construction and sales of existing homes, further driving demand for hardware.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.