AMERICAN HARDWARE MANUFACTURERS ASSOCIATION
Terrence V. Gallagher
Manager of Communications
801 North Plaza Drive
Schaumburg, Illinois 60173
P.R. # AHMA13-03
FOR IMMEDIATE RELEASE
AHMA Confidence Index Falls in February
Manufacturers also reported plans for increasing international sales and a strong need for more affordable health care.
Schaumburg, Illinois, March 6, 2013 — The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index fell in February to 198.3 from 270.8 in January (February 2008 = 100), while the Future Expectations Index increased to 218.5 from 206.9.
In comparing current sales levels to year-ago levels, 48 percent of respondents said sales were higher in February versus year-ago levels, down from 62.5 percent in January. For February, 43 percent reported sales were even, and nine percent said sales were below year-ago levels.
Looking forward six months, 67 percent of February respondents said they expect sales to be above current levels, up from 60 percent in January. In February, 24 percent of respondents said they expect sales to be even in six months and nine percent expect sales to be below current levels.
Looking forward one year, 60 percent of respondents project sales will be higher, up from 60 percent who felt that way in January. Thirty percent of February respondents project sales will be even one year from now and 10 percent project sales will be below current levels.
Timothy S. Farrell, President and Chief Executive Officer of the American Hardware Manufacturers Association (AHMA), said: “Despite a very challenging macroeconomic environment and the lack of a clear future cost structure in terms of taxes, health care costs, etc., most of our members continue to produce positive sales results. With economists predicting very slow growth for 2013, our members are concentrating on maximizing profits by managing their businesses as efficiently as possible.”
“Hot Topic” Questions
The February Confidence Index survey asked two supplemental questions of AHMA members:
“Do your plans for 2013 include increasing international sales?” and “As a manufacturer, how important is it to your business that health care costs stop rising and become more affordable?”
To the first question, on international sales, 57 percent responded “Yes,” 24 percent responded “Not Sure,” and 19 percent responded “No.”
On the health care question, 100 percent responded “Very important,” zero percent responded “Somewhat important,” and zero percent responded “Not important.”
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 February 2008 as the base reference point so that February 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/CurrentResults
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 AHMA eAGLE, The Hard Fax: Home Improvement Industry News, The Hard Fax International: Home Improvement Industry News from Around the World, the Home Improvement Industry Confidence Index, the AHMA Home Improvement Industry Dashboard, AHMA Home Improvement Industry Stocks, the AHMA Home Improvement Industry Calendar, the AHMA Home Improvement Industry Network on LinkedIn, AHMA News on Twitter, 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.