Renewed power: Improving production and construction activity will support industry growth

The Power Tool Manufacturing industry's dependence on the construction sector led to unusually strong growth in industry revenue over the past five years. As the economic recovery took hold, construction activity increased, leading to an ongoing boost in demand for power tools. Starting from historically low levels, industry revenue growth was very high as it proceeded to make up for lost ground. Over the next five years, the industry is expected to benefit from more stable demand from the construction sector. However, persistent import competition and volatile input prices will pressure operators' profit margins moving more.

Industry Statistics & Market Size
Annual Growth 11-16
Forecast Growth 16-21
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Industry Threats & Opportunities

  • Mass-produced imports will continue to put pressure on operators’ pricing and profit margins
  • Rising corporate profit and employment levels boosted demand for power tools significantly
  • Demand for power tools will increase throughout the construction sector
  • Industry Report - Industry SWOT Analysis Chapter

    The Power Tool Manufacturing industry is in the mature stage of its life cycle. Over the 10 years to 2021, industry value added (IVA), which represents the industry's contribution to the overall economy, is expected to rise at an annualized rate of 4.5%. In contrast, GDP is forecast to grow 2.1% per year on average during the period. IVA growth outpaces GDP growth due to the industry's dependence on the construction sector and that sector's accelerated recovery as it makes up ground lost during the recession. This dependence and the market saturation that the industry has achieved help indicate its mature life cycle phase.Power tools are an absolute necessity in construction projects. Consequently, the construction sector as a whole generates the bulk of demand for power tools. Add...purchase to read more.

    Additional Insights for the Power Tool Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Power Tool Manufacturing Industry are

  • Establishment of brand names
  • Having a diverse range of clients
  • Development of new products
  • IBISWorld analysts also discuss how external factors such as Value of private nonresidential construction and Value of residential construction in the Power Tool Manufacturing industry impact industry performance..

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    What is the Power Tool Manufacturing Industry?

    This industry manufactures power-driven (e.g. battery, corded, pneumatic) hand tools including drills, circular saws, chain saws and nail guns. Operators that manufacture such tools may also sell spare or replacement parts. This industry excludes operators that exclusively sell parts, power-driven heavy construction hand tools (e.g. tampers, jackhammers), powered pumps and vacuums, outdoor powered equipment (e.g. lawnmowers, power washers) and machine tools for woodcutting.

    Industry Products
  • Pneumatic, hydraulic and power-actuated tools
  • Electric tools
  • Battery-powered tools
  • Internal-combustion-driven tools
  • Other tools and parts
  • Industry Activities
  • Manufacturing pneumatic-powered tools
  • Manufacturing hydraulic-powered tools
  • Manufacturing electric-powered tools
  • Manufacturing battery-powered (cordless) tools
  • Manufacturing internal-combustion-engine-driven tools
  • Manufacturing spare parts for power tools
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of private nonresidential construction
  • Value of residential construction
  • Private spending on home improvements
  • Trade-weighted index

  • Current Performance
  • Primary demand drivers
  • Economic recovery drives demand from the construction sector
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthy downstream demand
  • Import penetration remains a threat
  • Increased R&D
  • Table: Power Tool Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Power Tool Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Manufacturing
  • Consumers

  • Key Selling Industries
  • Ball Bearing Manufacturing
  • Battery Manufacturing
  • Copper Rolling, Drawing & Extruding
  • Electrical Equipment Manufacturing
  • Ferrous Metal Foundry Products
  • Metal Pipe & Tube Manufacturing
  • Plastic Products Miscellaneous Manufacturing
  • Screw, Nut & Bolt Manufacturing

  • Products & Services
  • Internal-combustion-driven tools
  • Pneumatic, hydraulic and power-actuated tools
  • Electric tools
  • Other tools and parts
  • Battery-powered tools
  • Chart: Power Tool Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Construction
  • Exports
  • Other
  • Automotive and aviation markets
  • Chart: Major Market Segmentation for the Power Tool Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Additional expenses
  • Chart: Cost Structure Benchmarking – Sector vs Power Tool Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Power Tool Manufacturing Industry

  • Industry Globalization
    Stanley Black & Decker Inc.Snap-On Inc.Techtronic Industries Co. Ltd.
  • Table: Stanley Black & Decker Inc. - financial performance
  • Table: Snap-On Inc. - financial performance
  • Table: Techtronic Industries Co. Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Power Tool Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Power Tool Manufacturing Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Exports (2007-2021)
  • Imports (2007-2021)
  • Wages (2007-2021)
  • Value of Construction (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big-Box Store
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, households goods and other consumer products.
  • Computer-Aided Design
  • The use of computer technology to aid the design and drafting of a part or product using software tools that can create two-dimensional drawings or three-dimensional models.
  • Do-It-Yourself
  • A category of customers who complete tasks and projects on their own that would generally be outsourced to a business or service provider, for example, home renovations and wedding planning.
  • Hydraulic Tool
  • A tool driven by a compressed liquid, where the liquid is stored in tiny cylinders within the tool and is forced through an internal small space to provide power.
  • Pneumatic Tool
  • A tool driven by gas, such as compressed air or carbon dioxide, where compressed air stored in tiny cylinders within the tool is forced through an internal small space to provide power.
  • Why buy this report?

    The Power Tool Manufacturing industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Power Tool Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Power Tool Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Power Tool Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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