Hardware Thoughts

The last couple of days, I have called a number of people in the industry to try and find out what people are thinking. Most are still struggling with the price of steel. Some took price increases earlier and now realize the increase wasn't big enough to cover the latest increases. Others have held off and are now faced with the need to increase. Acceptance may be more difficult in the Industrial and Automotive area as those segments have not been as strong as Hardware. (One friend reported that at least one GM supplier closed his doors when he could not get a price increase based on increased steel prices.) Another manufacturer reported difficulty getting steel outside his regular contract.

Rising oil prices are going to have an impact on our business. Not only can we expect higher freight costs, but we can expect increases in energy intensive products as well as expecting other forms of energy to cost more as demand is increasing across the board. As we look at rising energy costs, it is going to be extremely difficult to go back and get another increase anytime soon.

I have also been talking to folks about the Hardware Shows. There is no excitement about returning to Chicago in 2005. Some are considering Las Vegas, but more companies are looking at Functional Shows like the World of Concrete, the Builders Show, etc. My guess is that most of the activity will center on these functional shows until someone comes up with some kind of show that will draw the 20,000 hardware store owners.