CLEVELAND, June 28, 2016 /PRNewswire/ -- US demand for power tools will expand 4.0 percent per annum through 2020 to $7.2 billion. Ongoing strength in construction activity and housing starts will boost demand for power tools used in construction applications, and continued growth in manufacturing output will fuel demand for industrial power tools. Among consumers, those with less interest in do-it-yourself (DIY) activities will be more likely to outsource jobs to professionals, while many of those undertaking DIY activities will upgrade from more basic power tools to higher priced or more technologically advanced models. These and other trends are presented in Power Tools, a new study from The Freedonia Group, a Cleveland-based industry research firm.
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The professional market accounted for nearly two-thirds of all power tool sales in 2015, with consumer demand responsible for the remainder. The former will post faster gains through 2020, driven by continued strength in building construction. In addition, ongoing increases in automotive aftermarket service and repair spending, supported by the aging and growing stock of motor vehicles in the US, will help spur associated professional power tool sales.
Professionals generally use higher-value power tools than consumers due to the improved performance and longer lifespans they offer. According to analyst E. Reta Sober, "professionals tend to use tools on a daily basis, they replace tools, parts, and attachments more frequently, bolstering overall spending." Professionals account for the majority of demand for more expensive, powerful tools such as pneumatic. Consumers, on the other hand, are typically less frequent users of power tools and are more likely to purchase products based on price, which will limit increases in demand in dollar terms.
Power tool shipment gains will trail advances in domestic demand through 2020, reflecting intense competition from lower-cost imports, particularly among more basic items. The largest foreign suppliers of power tools to the US market in 2015 were China, Germany, Mexico, and Taiwan, with China supplying more than half of all imports. A sizable number of power tools are sourced from Germany because of their reputation for quality.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players. Reports can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group