Abstract
US demand to grow 4.1% annually through 2013
Power lawn and garden equipment demand is forecast to rise 4.1 percent
annually through 2013, a significant turnaround from the declines of the 2003-
2008 period. Although gains are expected to be modest in the short term, the
housing market is expected to recover by 2013, creating opportunities in the
consumer market. In addition, a positive outlook for the landscaping industry
will provide opportunities. Product innovations, which are being driven by
consumer demand for equipment which is easier to use, more efficient, and with
additional safety features and lighter weight, will also boost value gains.
However, gains will be limited by continuing struggles in the golf industry,
where the total number of courses is expected to decline.
Rebounding residential market to remain dominant
The residential market dominates power lawn and garden equipment sales,
representing over two-thirds of the total in 2008. Although demand will be
adversely affected in the short term, by 2013 it will benefit from a
turnaround in housing completions. In addition, gains in the residential
market will benefit from solid gains in personal expenditures. Opportunities
in the professional market will be strongest in the landscaping industry. The
number of professional landscaping firms will continue to rise, benefitting
from an aging US population. Advances in the golf industry, however, will be
adversely affected by the declining number of golf courses in the US.
Lawnmowers will continue to be largest, fastest growing
Lawnmowers will continue to be the largest product segment, benefitting from
their wide use in both residential and commercial applications. In addition,
lawnmowers will be among the fastest growing products. Despite the improving
durability of original equipment, parts and accessories demand will advance
due to the rising amount of stock in use. Turf and grounds equipment is
expected to post below-average gains because of the declining number of golf
courses. The US is a net exporter of power lawn and garden equipment, as US
producers benefit from strong US brand recognition in overseas markets.
Overall, the US is expected to maintain a trade surplus, although increasing
competition from
foreign suppliers both domestically and in overseas markets will reduce the
size of the surplus. The surplus will also be threatened by the possibility
that additional US capacity could be moved offshore to lower costs.
Study coverage
These and other key findings are detailed in Power Lawn & Garden
Equipment. This report presents historical demand data (1998, 2003 and
2008) plus forecasts for 2013 and 2018 by material, product, market, and
region of the US. In addition, the study also considers market environment
factors, assesses various channels of distribution, evaluates company market
shares and profiles 38 competitors in the US industry.
Freedonia' s methods involve:
- Establishing consistent economic and market forecasts
- Using input/output ratios, flow charts and other economic methods to
quantify data
- Employing in-house analysts who meet stringent quality standards
- Interviewing key industry participants, experts and end users
- Researching a proprietary database that includes trade publications,
government reports and corporate literature
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