Industry News
AHMA Home Improvement Industry Confidence Index Slides in September, But Expectations at All-time High
10/07/2009
SCHAUMBURG, IL -- The American Hardware Manufacturers Association's AHMA Home Improvement Industry Confidence Index's Current Situation Index fell in September to 45.8 from 91.7 in August, while the Future Expectations Index moved just as dramatically in the opposite direction rising to an all-time high of 191.4 from 170.7 in August.
In comparing current sales levels to year-ago levels, 11 percent of respondents said sales were higher in September versus year-ago levels, compared with 22 percent in August. For September, 17 percent reported sales were even, and 72 percent said sales were below year-ago levels, up from 68 percent in August.
Looking forward six months, 44 percent of September respondents said they expect sales to be above current levels, up from 31 percent in August. In September, 39 percent of respondents said they expect sales to be even in six months and 17 percent expect sales to be below current levels.
Looking forward one year, 67 percent of respondents project sales will be higher, down from 68 percent who felt that way in August. Thirty percent of September respondents project sales will be even one year from now and just four 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 fact that our members' month-over-month sales continue to disappoint mirrors the most recent report from the Department of Commerce on retail sales which shows hardware / home improvement product sales down 12 percent from last year on a year-to-date basis." "On the plus side, this month's survey also points to strong optimism for improvement looking forward six to twelve months, indicating that the long downward slide in sales may be positioned for a reversal," Farrell added.
"Hot Topic" Questions
The September Confidence Index survey asked two supplemental questions of AHMA members:
"What percent of the products sold by your company are manufactured in the United States?" and "Much has been written in the consumer press about the 'greening' of America. How important is it to you that your company's products be perceived by the end-user as environmentally-friendly?"
To the first question, on the percentage of products manufactured in the U.S, nine percent responded "None," 20 percent responded "Less than 50%," 50% percent responded "More than 50%," and 20% responded "100%."
On the environmental question, 28 percent responded "Little importance," 57 percent responded "Important," and 15 percent responded "Very important."