Power-Driven Handtool Manufacturing
Description
Companies in this industry manufacture power-driven hand tools (battery, corded, and pneumatic). Top companies include Emerson Electric, Snap-On, and Stanley Black & Decker (all based in the US), as well as Hilti (Liechtenstein), HIKOKI and Makita (both in Japan), Positec (China), Robert Bosch (Germany), and Techtronic Industries (Hong Kong).
The global market for power tools is forecast to increase 4.4% per year through 2032, reaching a value of over $40 billion, according to Fortune Business Insights. Global demand for power tools is expected to be driven by developing markets, especially China and India, as construction spending increases. Improving levels of construction spending in the US should also help spur demand for power tools.
The US power-driven hand tool manufacturing industry includes about 130 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $3 billion.
COMPETITIVE LANDSCAPE
Demand is driven by consumer spending and construction activity. The profitability of individual companies depends on effective marketing, efficient production, and product innovation. Large companies have economies of scale in purchasing and production. Small firms can compete by making specialty products. The US power tool manufacturing industry is highly concentrated: the top 50 companies account for more than 95% of industry revenue.
Imports of power tools, mainly from China, Mexico, Taiwan, and Canada, account for about 70% of the US market. Power tool exports represent about 40% of US production. Canada and Mexico account for about half of all US exports.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products of power-driven handtool manufacturers include power-driven and internal combustion engine driven handtools that account for about 30%, followed by parts, attachments, and accessories at more than 20%. Other products include pneumatic percussion handtools, electric power-driven handtools, and battery-powered electric-powered handtools.
Production of hand-held power tools typically involves processes such as injection molding, extrusion, stamping, plasma cutting, die casting, painting or powder coating, and assembly. Companies often purchase components and subassemblies, including batteries, electric motors, and electronic components from suppliers. Companies closely monitor retail demand and manage production and inventory accordingly using just-in-time or similar lean inventory and production methods. Companies may use contract manufacturers for production of some products. Manufacturers of hand-held power tools may offer products for the consumer/DIY market, as well as heavier-duty products for use in the construction trades.
Raw materials include steel, aluminum, and resins and plastics, which are subject to fluctuations in commodity prices. Manufacturers may also be affected by commodity prices for copper, steel, aluminum and plastic resins used by suppliers to make various purchased components. In some cases, companies may rely on only one or a few suppliers for certain components.
The global market for power tools is forecast to increase 4.4% per year through 2032, reaching a value of over $40 billion, according to Fortune Business Insights. Global demand for power tools is expected to be driven by developing markets, especially China and India, as construction spending increases. Improving levels of construction spending in the US should also help spur demand for power tools.
The US power-driven hand tool manufacturing industry includes about 130 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $3 billion.
COMPETITIVE LANDSCAPE
Demand is driven by consumer spending and construction activity. The profitability of individual companies depends on effective marketing, efficient production, and product innovation. Large companies have economies of scale in purchasing and production. Small firms can compete by making specialty products. The US power tool manufacturing industry is highly concentrated: the top 50 companies account for more than 95% of industry revenue.
Imports of power tools, mainly from China, Mexico, Taiwan, and Canada, account for about 70% of the US market. Power tool exports represent about 40% of US production. Canada and Mexico account for about half of all US exports.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products of power-driven handtool manufacturers include power-driven and internal combustion engine driven handtools that account for about 30%, followed by parts, attachments, and accessories at more than 20%. Other products include pneumatic percussion handtools, electric power-driven handtools, and battery-powered electric-powered handtools.
Production of hand-held power tools typically involves processes such as injection molding, extrusion, stamping, plasma cutting, die casting, painting or powder coating, and assembly. Companies often purchase components and subassemblies, including batteries, electric motors, and electronic components from suppliers. Companies closely monitor retail demand and manage production and inventory accordingly using just-in-time or similar lean inventory and production methods. Companies may use contract manufacturers for production of some products. Manufacturers of hand-held power tools may offer products for the consumer/DIY market, as well as heavier-duty products for use in the construction trades.
Raw materials include steel, aluminum, and resins and plastics, which are subject to fluctuations in commodity prices. Manufacturers may also be affected by commodity prices for copper, steel, aluminum and plastic resins used by suppliers to make various purchased components. In some cases, companies may rely on only one or a few suppliers for certain components.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Pricing
Currency Rates
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