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US power & hand tools demand to exceed $15 billion in the year 2005: for immediate release: October 30, 2001. (News Release).

US demand for power and hand tools is forecast to increase over 4 percent annually (including price increases) to $15.1 billion in 2005. Advances will result from upgrades to more powerful, high-end power tools, and by the continuing diffusion of cordless products. Imports, which already account for a quarter of total demand, will continue to increase in importance. These and other trends are presented in Power & Hand Tools, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Power tool demand is forecast to rise nearly 5 percent annually through 2005 to $9.4 billion, outpacing hand tools due to the continuing popularity of cordless electric products such as saws, sanders, polishers and grinders. Electric drills and saws are expected to show above average growth. Electric screwdrivers are also expected to offer good growth prospects. Shipments of cordless power tools from US facilities are forecast to rise nearly ten percent annually, approaching $1.5 billion by 2005.

Hand tool demand is forecast to rise 3.2 percent annually through 2005, to $5.7 billion, limited by the inherent durability of these products. Unlike power tools, common household tools such as hammers frequently outlive their owners, dampening replacement demand. Some opportunities will result from the spread of more ergonomically designed tools. The rising number and average age of motor vehicles in the US park will boost gains for automotive hand tools since aftermarket repairs will become more common. Among particular product types, multitools will present the strongest growth possibilities, due to ongoing new product development.

Professional users will continue to dominate overall tool use, comprising over two-thirds of demand in value terms in 2000. Professionals use a greater variety of tools, most of which are also more expensive than those used by consumers. Since the construction industry comprises the largest portion of professional demand, gains will be limited by decelerating growth in construction expenditures. This factor will be offset to some extent by the rising number and average age of vehicles in the US motor vehicle park, which will create opportunities among automotive aftermarket professionals. Growth in consumer tool demand will outpace that of the professional market through 2005, due to the ongoing popularity of do-it-yourself activities and the trade-up by consumers to feature-laden power tools. Tool producers will continue to target this growing segment with a number of marketing strategies. For example, suppliers are marketing power tools in special kits designed to attract value oriented consumers into buying a range of tools at once.

Power & Hand Tools (published 10/2001, 241 pages)is available for $3,800 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through

A limited license to use or reprint information from this news release is granted to you provided attribution for same -- including, if possible, the price of the report -- is given to The Freedonia Group, Inc. (Cleveland, OH). We would also appreciate the courtesy of receiving a copy of the article or publication in which we appear.

Contact: Corinne Gangloff Media Relations phone: 440.684.9600 fax: 440.646.0484 pr@freedoniagroup.com
US POWER & HAND TOOLS DEMAND
(million dollars)

 % Annual Growth
Item 1995 2000 2005 00/95 05/00

Power & Hand Tools Demand 8555 12250 15080 7.4 4.2
 Power Tools 4967 7420 9430 8.4 4.9
 Electric Tools 3615 5580 7160 9.1 5.1
 Other Power Tools 1352 1840 2270 6.4 4.3
 Hand Tools 3588 4830 5650 6.1 3.2

(C) 2001 by The Freedonia Group, Inc.

COPYRIGHT 2001 Subscription: $00.00 per year as of 1/94. Published irregularly. Contact Freedonia Group, 3570 Warrensville Cente
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001 Gale, Cengage Learning. All rights reserved.

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Title Annotation:Freedonia Group report
Comment:US power & hand tools demand to exceed $15 billion in the year 2005: for immediate release: October 30, 2001. (News Release).(Freedonia Group report)
Publication:Research Studies - Freedonia Group
Article Type:Brief Article
Geographic Code:1USA
Date:Oct 30, 2001
Words:614
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