Slowing Economy to Cause Home Improvement & Repair Product Sales to Grow (1)
New Research Projects Growth As People Remain In Their Homes Longer
National Hardware Show Organized To Enable Exhibitors to Profit from This Growth
(NORWALK, Conn. USA Oct. 24, 2008) - - - -While a slowing economy is making headlines, the National Hardware Show® is being organized to enable its exhibitors to take advantage of the opportunity that this economy presents. New research issued in Aug. 2008 by the Home Improvement Research Institute (HIRI; Global Insights Report) projects a +1.6% growth in home improvement products in 2009 after declining in 2007 and 2008. The research concludes that the market for home repair and home improvement products is expected to grow in 2009 as homeowners remain in their homes longer. This predicted growth will be driven by homeowners’ behavior to “do it themselves” versus paying for a company to perform these services in a challenging economy.
In other encouraging news, new housing inventory was at its lowest point in Sept. 2008. This fact coupled with an increase in new housing starts in 2009 to fill the void also portends demand for new products. In fact, HIRI is projecting that housing starts will increase +5% in 2009.
All of these facts clearly indicate the U.S. hardware market will be strong in 2009. As a result, the National Hardware Show is taking steps to leverage the opportunities for exhibitors by better organizing its show floor and reaching key buyers who are focusing on growing retail sales to homeowners who are staying in their homes longer.
The 2009 National Hardware Show is also taking advantage of new research detailing the fact that a slowing economy means consumers will alter their behavior by taking less vacations; staying home on weekends and eating out less often. As people spend more time in their houses instead of traveling, they will make improvements to augment their enjoyment such as adding outdoor living components, purchasing unique amenities to enhance their lifestyle and increase the use of cleaning and homewares products to address their homes’ maintenance and upkeep needs.
In order to support the increased demand for home improvement products, the 2009 National Hardware Show will offer several marketing platforms on which buyers can preview products. These include:
“Stay-Cation”: Recessionary economy prevents families from taking vacations, but rather, opting for enjoyment and pleasure close to home while doing chores, repairs and easy maintenance projects. Staying at home creates increased demand for products.
“Saving Money, By Saving Energy”: Demand for products that will help homeowners reduce energy use ultimately saves money.
“Why Pay, When You Can Do It Yourself”: Pinching dollars means doing a lot more of the home improvement projects that used to be relegated to a contractor. Since many homeowners often don’t have the tools to compete a project, a trip to the home improvement store is necessary. This drives demand.
“Green and Eco-Friendly Products”: With global pressure to reuse or recycle, homeowners are seeking products that support the environment.
These new areas will fuel new growth projected over the next several years meaning that the $428 billion US home improvement marketplace is open for business and ready to offer increased opportunities for Chinese manufacturers despite news of the slowing economy.
“The US home improvement market’s increase over the next several years is an indication of the business potential for China,” said Ed Several, Group Vice President and Show Manager for the 2009 National Hardware Show. “We are quite confident that the US market will increase demand for new, private label and competitively priced products, especially in a slowing economy, where housing starts are down and homeowners are staying in their homes longer. On the National Hardware Show floor, we have created a comprehensive plan for Chinese suppliers to increase sales; build new relationships with domestic US buyers and their operations and R&D colleagues and make the process a lot more efficient and effective.”