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

P.R. # AHMA09-09

FOR IMMEDIATE RELEASE

AHMA Home Improvement Industry Confidence Index^SM Results Show Both Current Situation and Future Expectations Improving

Survey Also Finds Manufacturers Mostly Opposed to Government Intervention in Private Sector and in Favor of “Buy American” Provision in Stimulus Bill

Schaumburg, Illinois, June 3, 2009 — The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index shows improving sales in May, with the Current Situation Index rising 20.9 points from April’s Index of 33.3 to 54.2 (October 2008 = 100) and the Future Expectations Index up to an all-time high of 186.2 from 148.3 in April.

In comparing current sales levels to year-ago levels, 13 percent of respondents said sales were higher in May versus year-ago levels, compared with eight percent in April. For May, nine percent reported sales were even, and 78 percent said sales were below year-ago levels.

Looking forward six months, 36 percent of May respondents said they expect sales to be above current levels, up from 28 percent in April. In May, 44 percent of respondents said they expect sales to be even in six months and 19 percent expect sales to be below current levels.

Looking forward one year, 72 percent of respondents project sales will be higher, up from 58 percent who felt that way in April. Twenty-one percent of May respondents project sales will be even one year from now and eight percent project sales will be below current levels.

Timothy S. Farrell, President and Chief Executive Officer of the American Hardware Manufacturers Association (AHMA), said: “It is encouraging that our members’ projections for sales looking forward six months and one year both improved in May and that the current level of sales also improved in May from April. The fact remains, however, that our industry is still operating under very challenging economic conditions with 78 percent of hardware/home improvement industry manufacturers reporting current sales are below year-ago levels.”

“Hot Topic” Questions

The May Confidence Index survey asked two supplemental questions of AHMA members: “The Obama administration has shown a willingness to use government intervention as a solution to the economic problems of private sector corporations. Do you agree with this approach?” and “The American Recovery and Reinvestment Act encourages recipients of federal funds to buy American. How will this affect your business?”

To the first question, on government intervention, 15 percent responded “agree,” 20 percent responded “not sure,” and 65 percent responded “disagree.”

On the “buy American” policy, 38 percent responded “positively,” 53 percent responded “no affect/not sure,” and nine percent responded “negatively.”

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/May2009Results

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.

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