Hardware industry risks are financial

By Valerie Caldwell Manager, Marketing Planning Schlage Lock Co. San Francisco, Ca.

EXT year combines the traditional crisis elements of risk and opportunity. The door hardware industry in particular will be walking this narrow dividing line for most of the year.

Story at a Glance

Volalile interest rates will dampen confidence. record number of bankruptcies more two step distribution hardware retailing up Soh-$o/o . . . more builder buying from retailers possible.

The key to success will be identifying exactly what the risks are and where the opportunities lie.

The risks facing the industrY in 1983 are primarily financial. While the cost of credit remains high, inventories will continue at low levels. The volatility of interest rates will dampen any renewal of confidence. With bankruptcies forecast to be at a record high in 1983, everyone should approach his business with an air of caution.

Ignoring changes in consumer needs is a risk. Quality is increasing in importance. People are staying longer in their homes and as they invest in d-i-y and remodeling projects they want things to last. They will pay more for quality, but only to the exrent that they feel they are getting good value. In 1983 watch carefully as the market pushes further awaY from the traditional "good-betterbest" buying attitude and settles at the "good" and "best" ends.