Tooth and nail: Industry operators will struggle to grow as import penetration rises

The Hardware Manufacturing industry's revenue has responded to positive downstream demand conditions over the past five years, specifically from the residential and nonresidential construction markets, aircraft engine and parts, and automobile engine and parts manufacturing. Low-cost imports continue to pose a potential threat and erode industry revenue. Increasing import penetration reinforces a focus on price-based competition and puts downward pressure on profit margins. As a result, the industry is experiencing a long-term, gradual exit of operators as imports occupy an increasing share of domestic demand. Over the past five years, the industry has experienced no change in the number of establishments and enterprises and has remained quite stable over the short term...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Low-cost imports continue to pose a potential threat, eroding industry revenue growth
  • Imports typically increase price competition, putting downward pressure on profit margins
  • The domestic industry will ultimately lose out to foreign-made parts
  • Industry Report - Industry Investment Chapter

    The Hardware Manufacturing industry is categorized by a medium level of capital intensity, with expenditures focusing largely on machinery and equipment rather than property, structures or vehicles. Operators that produce on a large-scale are more capital intensive, while small-to-medium operators have lower capital expenditures and greater labor intensity. IBISWorld estimates that for every $1.00 spent on labor, an estimated $0.13 is allocated for capital in 2017. This signals a slight increase from the 2012 level of $0.12 because the industry has expanded its capital expenditure over the past five years. The purchase of computers, data and processing equipment has mainly increased because large integrated producers are seeking to better manage large inventories and orders...purchase to read more.

    Additional Insights for the Hardware Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hardware Manufacturing Industry are

  • Economies of scale
  • Establishment of brand names
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Import penetration into the manufacturing sector and Value of residential construction in the Hardware Manufacturing industry impact industry performance..

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    What's in this report

    What is the Hardware Manufacturing Industry?

    This industry manufactures various forms of metal hardware, including metal hinges, metal handles, keys and locks, excluding time locks and coin-operated locks.

    Industry Products
  • Furniture hardware
  • Motor vehicle hardware
  • Builder's hardware
  • Other hardware
  • Industry Activities
  • Metal furniture hardware and caster
  • Metal appliance hardware
  • Automobile hardware
  • Builder's metal hardware
  • Industrial caster
  • Aircraft hardware
  • Metal hinge
  • Blank key
  • Lock (except coin-operated and time locks)
  • Construction hardware
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Import penetration into the manufacturing sector
  • Value of residential construction
  • Value of private nonresidential construction
  • Trade-weighted index
  • Demand from aircraft, engine and parts manufacturing
  • Demand from automobile engine and parts manufacturing

  • Current Performance
  • Downstream volatility
  • Stable profit margins
  • Industry structure
  • Increasing trade deficit
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand and revenue
  • Margins and size
  • Imports and exports
  • Table: Hardware Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hardware Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Home Builders
  • Car & Automobile Manufacturing
  • Aircraft, Engine & Parts Manufacturing
  • Cabinet & Vanity Manufacturing
  • Miscellaneous Product Manufacturing
  • Hardware Stores
  • Security Alarm Services
  • Commercial Building Construction
  • Municipal Building Construction

  • Key Selling Industries
  • Copper Rolling, Drawing & Extruding
  • Ferrous Metal Foundry Products
  • Iron & Steel Manufacturing
  • Metal Pipe & Tube Manufacturing
  • Metal Plating & Treating
  • Screw, Nut & Bolt Manufacturing
  • Wire & Spring Manufacturing

  • Products & Services
  • Builder's hardware
  • Motor vehicle hardware
  • Other hardware
  • Furniture hardware
  • Chart: Hardware Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Automobiles
  • Construction
  • Other

  • Major Markets
  • Exports
  • Other manufacturers and Other Markets
  • Wholesalers
  • Automobile and parts manufacturers
  • Hardware and home improvement stores
  • Furniture manufacturers
  • Contractors
  • Chart: Major Market Segmentation for the Hardware Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Hardware Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hardware Manufacturing Industry

  • Industry Globalization
    Spectrum Brands, Allegion PLC,
  • Table: Spectrum Brands - financial performance
  • Table: Allegion PLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hardware Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hardware Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Housing Starts (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • A manufacturing process by which a liquid material is usually poured into a mold that contains a hollow cavity of the desired shape.
  • Electronic Data Interchange
  • The transmission of electronic documents between businesses from one computer system to another.
  • Normal Trade Relations
  • The trade status of a country that is characterized by low tariffs and limited restrictions. It was formerly known as the Most Favored Nation (MFN) duty rate.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Hardware Manufacturing is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hardware Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hardware Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hardware Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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