Abstract
Continuing shift toward power tools to support demand advances
Power and hand tool demand in the US is projected to rise more than three
percent annually through 2011, a deceleration from the 2001-2006 pace.
Decelerating gains will reflect modest growth for home improvement
expenditures and manufacturing output. In addition, a decline in new housing
starts and decelerating construction expenditure growth will dampen advances.
However, these factors will be offset to some extent by a continued shift
toward power tools vis-a-vis hand-operated types, especially in the consumer
market -- reflecting the trend toward the purchase of more powerful,
sophisticated power tools among DIYers and hobbyists. Product innovations,
such as the development of higher-voltage lightweight cordless electric tools,
will further spur advances.
Power tools to outpace their more durable hand tool counterparts
Power tool demand is forecast to outpace hand tool demand due to the
continuing popularity of cordless electric products such as saws, sanders,
polishers and grinders. Hand tool demand is limited by the inherent durability
of these products. Unlike power tools, common household tools such as hammers
frequently outlive their owners, dampening replacement demand. In addition,
product innovation is less common than in power tools, limiting opportunities
for value gains.
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