NEW YORK, Dec. 8, 2016 /PRNewswire/ -- 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. Disposable incomes and consumer spending will contribute to sales gains in both the professional and consumer markets. 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.
Competition from imports
Power tools will face 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. China, Mexico, and Taiwan all have lower labor costs than the US, so power tools made in these countries are less expensive. A sizable number of power tools are sourced from Germany because of their reputation for quality. However, growth in imports will be limited to some degree by a trend toward "reshoring" production back to the US, as professional users are often willing to pay a premium for domestically produced tools perceived to be of higher quality.
Electric outpaces pneumatic
According to the Power Tools study, electric tools will continue to register the most rapid gains through 2020, outpacing growth in demand for pneumatic and other power tools. The improved accuracy and control that electric power tools offer will boost product sales. Demand for cordless electric power tools will expand at a faster rate than plug-in models through 2020. Advances in battery technology and continued efforts to reduce the weight and improve the runtime of battery-powered units will boost sales of cordless products. Manufacturers are using brushless motors, which are more efficient than brushed models, in conjunction with newer battery technologies to bring more powerful cordless electric tools to market. These motors are more expensive to produce, but their lower maintenance requirements and longer operational life help mitigate the cost premium.
Professionals continue to dominate market
The professional market accounted for nearly two-thirds of all power tool sales in 2015, though the consumer market will post faster gains through 2020. 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.
Power Tools provides historical data (2005, 2010, 2015) plus forecasts (2020, 2025) by type (electric, pneumatic and other), by market (professional, consumer) and distribution channel (direct sales and distributors, home centers, e-commerce, other). The study also assesses key market environment factors, details the industry structure, evaluates company market share and profiles industry players such as Techtronics, Stanley Black & Decker, and Bosch.
Freedonia's market research studies provide timely access to reliable, unbiased analysis from which to benchmark performance and answer critical questions: Is your business growing faster or slower than the overall market? Is your organization gaining or losing market share? Which products and markets are the most desirable to explore for expansion? Are there industry trends or competitor activities that present a threat or opportunity to your business?
Studies offer a great ROI and can help business leaders make informed, analytically driven decisions. When considering the time, effort, and expertise that goes into it, our off-the-shelf research saves our clients time and money.
Read the full report: http://www.reportlinker.com/p04121455-summary/view-report.html
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
Contact Clare: firstname.lastname@example.org
Intl: +1 339-368-6001
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/us-power-tools-market-300375683.html