Jan 18 2011
Riding past a history of nearly 200 years, the mature builders’ and cabinet hardware industry is characterized by intense competition, single digit sales growth and aging product life cycles.
Nevertheless, the industry is a typical example of a ‘traditional industry’, with most of the builders’ hardware categories such as locks still not significantly affected by the wave of technological developments.
The US builders’ and cabinet hardware market was one of the hardest hit by the recent economic meltdown, as stated by the new market research report on builders’ and cabinet hardware. The recession led to shelving of several construction projects, increased foreclosures as well as job losses, which in turn influenced related businesses such as cement, pickup trucks, and homebuilders. While office construction in the private sector faced difficult conditions, government-based office projects witnessed comparatively strong activity, backed by federal economic stimulus package. Non-residential buildings segment remained soft primarily due to tight lending conditions and weak employment. With the recession gradually dissipating, the construction sector is witnessing soft growth in certain sectors. New residential construction is picking pace, driven by tax credits and other federal governmental incentives.
The builder hardware sector is expected to witness modest growth due to a rise in demand for safety devices such as locks. Lock demand is expected to grow further due to an expected revival of the nation’s home building industry. In residential construction, repair and improvement segment, profits would mainly result due to an inclination toward enhancing personal home safety. A similar trend is expected in the nonresidential sector, where locks and associated safety products are expected to witness a slightly increased demand due to the tendency of improving security in different facilities such as hospitals, schools, and universities. The builder’s hardware market is also likely to receive a boost from multiple drawer furniture, compartments, and storage space, which in turn would stimulate demand for furniture locks, slides, pulls, and hinges, among others.
With increasing number of people shifting focus towards improving living and home conditions, the industry witnessing a surge in the home improvement and Do it Yourself segment (DIY) with. This is expected to enhance the demand for cabinet hardware, locking devices and other builders’ hardware. Significant gains are on cards for electronic locks, exit devices, door hinges, keys, drawer slides and window hardware.
Major players profiled in the report include Ashland Hardware Systems, Assa Abloy AB, CompX International Inc, DORMA GmbH & Co. KG, ERVOS Inc., Hickory Hardware, Ingersoll-Rand Company Limited, Kaba Holding AG, Lupus Capital Plc, Masco Corporation, Miwa Lock Co. Ltd., Rockwood Manufacturing Company, Security Door Controls, Stanley Black & Decker Inc., and Sugatsune America Inc.
The research report titled “Builders’ and Cabinet Hardware: A US Market Report” announced by Global Industry Analysts Inc., provides a strategic review of the industry, key market trends, recent product launches, strategic corporate initiatives, and profiles of key market participants. The report provides annual sales estimates and projections for the years 2007 through 2015, and 2000 to 2006. Key product segments analyzed include Builders' Hardware (Door Locking Devices, Door Hinges and Closers, Window Hardware, and Other Builders' Hardware), and Cabinet Hardware (Cabinet Locks, Cabinet Knobs Pulls and Catches, Cabinet Hinges, and Other Cabinet Hardware).
Source: http://www.strategyr.com/