Hardware Manufacturers

The 498 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.

Aug 23, 2026 - Lowe's Lowers 2026 Guidance on Softer DIY Demand

• Lowe's cut its full-year outlook as weak housing conditions, consumer uncertainty, and softer discretionary DIY spending continue to pressure results, according to Retail Dive. The retailer now expects $92 billion in annual sales, flat comparable sales, and an 11.2% operating margin, all at the low end of previous guidance. Second-quarter sales rose 8.3% to nearly $26 billion, while comparable sales increased 0.2%, supported by Pro, home services, and online growth. Smaller projects increased 1.5% in the second quarter, but larger, big-ticket projects fell more than 2%, according to research firm GlobalData. Softer demand for larger home improvement projects could limit orders for tools, fasteners, fixtures, and other hardware products, weighing on hardware manufacturers. Lowe's is investing in its Pro business and DIY capabilities, and executives expect performance to improve when broader economic and housing conditions strengthen.
• US construction and engineering spending is expected to decline 1% in 2026 after remaining flat in 2025, according to FMI's third-quarter 2026 North American Engineering and Construction Outlook. Office construction is projected to grow 2%, with a 21% increase in data center spending offsetting continued weakness in traditional office construction. Amusement and recreation (+2%), transportation (+1%), and communication (+3%) also remain stable. Several building segments are expected to decline, including lodging (-9%), commercial (-5%), health care (-0.2%), education (-1%), and public safety (-4%). Manufacturing construction is forecast to fall 17% as semiconductor fabs and battery plants move beyond their most spending-intensive phases. Residential construction remains constrained by elevated mortgage rates and affordability pressures. Single-family spending is projected to drop 4%, while multifamily spending declines 1% as rents remain soft and concessions limit new development. Residential improvements are expected to rise by 5%, supported by home equity financing and inflation in renovation costs.
• The National Association of Home Builders (NAHB) reported that California, Texas, and Florida accounted for more than 20% of US remodeling spending in the first quarter of 2026. National remodeling spending totaled $274.7 billion at a seasonally adjusted annual rate, down for the third consecutive quarter. California led with an 8.0% share, followed by Texas at 7.3%, and Florida at 5.5%, with the three states totaling $57.8 billion. Michigan posted the largest increase in remodeling spending on a four-quarter moving average basis, followed by Virginia, North Carolina, and Alabama. Although the 10 states with the strongest gains each recorded year-over-year growth of at least 2.9%, the number of states with declining spending doubled from the previous quarter to 10. NAHB forecasts flat inflation-adjusted remodeling spending for 2026.
• Producer prices for hardware manufacturers rose 3.1% in July compared to a year ago, after rising 2.8% in the previous June-versus-June annual comparison, according to the latest US Bureau of Labor Statistics data. The high cost of materials, notably tariffed metals, and labor are driving price inflation for the industry, which reached another record high in July. Employment by hardware, spring, and wire product manufacturers grew 2.3% year over year in June, while average wages at fabricated metal products manufacturers rose 4.4% YoY in July to a new high of $28.53 per hour, BLS data show.

Industry size & Structure

The average hardware manufacturer employs about 61 workers and generates about $22.8 million annually.

• The US hardware manufacturing industry consists of about 498 companies that employ about 30,600 workers and generate about $11.4 billion annually.
• The industry is highly concentrated; the top 50 companies account for 82% of industry revenue.
• Large firms, which include Allegion, TriMark Corp, and The Hillman Group, may offer a portfolio of related products.