Printable Version

AMERICAN HARDWARE MANUFACTURERS ASSOCIATION
Terry Gallagher
Manager of Communications
801 North Plaza Drive
Schaumburg, Illinois 60173
847-592-3504
tgallagher@ahma.org

P.R. # AHMA09-11

FOR IMMEDIATE RELEASE

AHMA Home Improvement Industry Confidence Index^SM Down in June

Survey Also Finds Manufacturers Not Using Social Media for Marketing, Unsure About Prospects for New Housing Construction

Schaumburg, Illinois, July 1, 2009 — The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Indexes declined in June, with the Current Situation Index falling 12.5 points from May’s Index of 54.2 to 41.7 (October 2008 = 100) and the Future Expectations Index falling 24.1 points to 162.1 from an all-time high of 186.2 in May.

In comparing current sales levels to year-ago levels, 10 percent of respondents said sales were higher in June versus year-ago levels, compared with 13 percent in May. For June, 10 percent reported sales were even, and 80 percent said sales were below year-ago levels.

Looking forward six months, 31 percent of June respondents said they expect sales to be above current levels, down from 36 percent in May. In June, 41 percent of respondents said they expect sales to be even in six months and 29 percent expect sales to be below current levels.

Looking forward one year, 63 percent of respondents project sales will be higher, down from 72 percent who felt that way in May. Thirty-two percent of June respondents project sales will be even one year from now and just five percent project sales will be below current levels.

Timothy S. Farrell, President and Chief Executive Officer of the American Hardware Manufacturers Association (AHMA), said: “The economic recession that has been restricting growth in our country and our industry for well over a year now continues to challenge hardware/home improvement manufacturers as witnessed by the fact that 80 percent of our members report sales below year-ago levels. Before any significant recovery can take place, we need to see improvement in two key measures of economic health: employment levels and housing sales. And while housing has begun to show some signs of stabilization, unemployment levels continue to rise, forcing us to conclude that recovery will be elusive throughout the remainder of 2009.”

“Hot Topic” Questions

The June Confidence Index survey asked two supplemental questions of AHMA members: “Many companies have begun to use emerging social media such as LinkedIn and Twitter as part of their overall marketing/communications plan. Where does your company stand on these tools?” and “The most recent report from the Department of Commerce shows housing starts up 17% in May compared to April, but still 45% below year-ago levels. Do you think construction of new homes will continue to increase?”

To the first question, on the use of social media, 10 percent responded “using,” 35 percent responded “considering use,” and 55 percent responded “no plans to use.”

On the outlook for new home construction, 25 percent responded “yes” indicating they now expect to see an increase, 58 percent responded “not sure,” and 17 percent responded “no.”

About the AHMA Home Improvement Industry Confidence Index

The AHMA Home Improvement Industry Confidence Index is a monthly indicator of the economic health and “mood” of the industry based on a survey of AHMA members.

The data collected from the survey produces two Indexes indicating: 1) Current Situation and 2) Future Expectations. Both Indexes use survey data from October 2008 as the base reference point so that October 2008 = 100.

The AHMA Home Improvement Industry Confidence Index results are released on the first Wednesday of every month.

Results of the Index survey are viewable online here: http://www.ahma.org/ConfidenceIndex/June2009Results

About the American Hardware Manufacturers Association (AHMA)

AHMA is a globally focused trade association of manufacturers, or providers, of hardware, home improvement, lawn and garden, paint and decorating, building and construction and related products, as well as manufacturers’ representative’s agencies and trade publications.

AHMA offers many valuable member and industry programs, services and activities including the AHMA Hardlines Technology Forum, AHMA / USA International Pavilions, AHMA Advantage GPO, The Hard Fax: Home Improvement Industry News, The Hard Fax International: Home Improvement Industry News from Around the World, the AHMA Home Improvement Industry Confidence Index, Government Relations Programs, Member Benefit Vendor Programs, the AHMA Hardware Industry Relief Effort (HIRE) and the AHMA / Habitat for Humanity Partnership.

For more information about AHMA, please visit www.ahma.org.

###