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Companies in this industry manufacture power-driven hand tools (battery, corded, and pneumatic). Top companies include Snap-On, Stanley Black & Decker, and Textron (all based in the US), as well as Hitachi, Makita, and Ryobi (all in Japan), Positec and Techtronic Industries (both in Hong Kong), and Robert Bosch (Germany).
The global market for power tools is forecast to increase 4.8% per year through 2018, reaching a value of nearly $33 billion, according to Freedonia. Global demand for power tools is expected to be driven by developing markets, especially China and India, as construction spending increases. Improving levels of construction spending in the US and Western Europe should also help spur demand for power tools.
The US power-driven hand tool manufacturing industry includes about 140 companies with combined annual revenue of about $4 billion.
Demand is driven by consumer spending and construction activity. The profitability of individual companies depends on effective marketing, efficient production, and product innovation. Large companies have economies of scale in purchasing and production. Small firms can compete by making specialty products. The US power tool manufacturing industry is highly concentrated: the top 50 companies account for more than 95% of industry revenue.
Imports of power tools, mainly from China, Mexico, Taiwan, and Germany, account for about 65% of the US market. Power tool exports represent about 30% of US production. Canada and Mexico account for about half of ...
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