Power Tools Market Report 2007

We estimate that the UK market for handheld electrical power tools and accessories was worth £283m at retail selling prices (rsp), in 2006. This represents a 9.6% fall on the previous year. This trend is part of an ongoing decline that started in 2004, when the market began to flatten off after a boom period in the early 2000s.

The range of products in the market is large and manufacturers continue to add new products to the list. Examples of power tools include: drills, hammer drills, screwdrivers, drill/drivers, saws, sanders, angle grinders, planers, routers, multifunction tools, wallpaper strippers, painting systems, paint sprays, heat guns, wet and dry vacuum cleaners for DIY/outdoor use, pressure washers, steam cleaners, tackers, staplers, glue guns, scrapers and electric brushes, car polishers, pressure pumps and laser measuring tools. For the purposes of this Key Note Market Report, the market is split into six sectors: drills; saws; sanders and grinders; planers; other tools; and power tool accessories.

Consumer spending on the whole range of DIY products fell in 2005 and 2006 — the difficulty experienced by the power tools market is part of this downturn. Despite a background of economic growth and fairly high employment, it has been increasingly difficult for new buyers to get into home ownership and this has had a negative impact on DIY activities. Another reason for the decline is a trend, noticed by the DIY trade, for householders to employ professionals to do some of the projects that they previously have undertaken themselves.

One of the main technical trends in the power tools market in 2006 has been the development of a wider range of tools using new battery technologies, particularly Lithium-Ion. This trend is forecast to continue throughout 2007 and beyond. The availability of lighter batteries, which can store more power, has enabled the cordless tool sector to come close to matching the mains powered sector in terms of power delivered.

The distribution channels for power tools have tended to widen between 2002 and 2006, and the supermarkets have become important suppliers, which are seen as offering even more potential to the market.

|We forecast a fairly flat market in constant price terms to 2011. This will be accompanied by very gradual growth in current price terms. Some price inflation seems inevitable, but careful sourcing by the retailers of products and the huge buying power of the superstores and supermarkets could keep these price increases to a minimum. We forecast a 7.7% growth at current prices between 2007 and 2011. SHOW LESS READ MORE >

Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

Drills

Saws

Sanders and Grinders

Planers

Other Tools

Power Tool Accessories

MARKET TRENDS

A Downturn in the DIY Market

Table 1: Consumer Expenditure on DIY Tools and Materials at Current Prices and Chained Volume Measures† (£m at rsp), 2002-2006

Seasonality of the Market

Product Innovation

Influx of Cheap Tools

Table 2: Price Index Values for Consumer Spending on Major Tools and Equipment (2003=100), 2002-2006

Advances in Battery Technology Improve the Power of Cordless Tools

ECONOMIC TRENDS

Population

Table 3: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006

Gross Domestic Product

Table 4: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006

Inflation

Table 5: UK Rate of Inflation (%), 2002-2006

Unemployment

Table 6: Actual Number of Unemployed Persons in the UK (million), 2002-2006

Household Disposable Income

Table 7: UK Household Disposable Income Per Capita (£), 2002-2006

MARKET POSITION

The UK

Table 8: Power Tools and Accessories as a Percentage of DIY Spending (% of retail value), 2002-2006

Overseas

2. Market Size

THE TOTAL MARKET

Table 9: The Estimated UK Consumer Market for Power Tools and Accessories by Value at Current Prices (£m at rsp), 2002-2006

Figure 1: The Estimated Consumer Market for Power Tools and Accessories by Value at Current Prices (£m at rsp), 2002-2006

BY MARKET SECTOR

Table 10: Breakdown of the UK Market for DIY and Professional Electric Handheld Power Tools by Value at Manufacturers' Prices (%), 2003 and 2006

OVERSEAS TRADE

General Overview

Table 11: Overseas Trade in Handheld Power Tools† — Including Tools for Professional or DIY Use (£m, million units and £), 2002-2006

Imports

Table 12: Value of Imports of Handheld Power Tools† by Product Sector (£m), 2002-2006

Table 13: Volume of Imports of Handheld Power Tools† by Product Sector (million units), 2002-2005

Sources of Imports

Cordless Power Drills

Table 14: Sources of Imports of Cordless Power Drills (%), 2006

Table 15: Sources of Imports of Mains-Powered Portable Drills by Value (%), 2006

Table 16: Sources of Imports of Power Saws — Including Chain Saws, Circular Saws and Other Types — by Value (%), 2006

Table 17: Sources of Imports of Other Handheld Power Tools — Excluding Drills and Saws — by Value (%), 2006

Exports

Table 18: Value of Exports of Handheld Power Tools† by Product Sector (£m), 2002-2006

Table 19: Volume of Exports of Handheld Power Tools by Product Sector (million units), 2002-2005

Destination of Exports

Cordless Drills

Table 20: Destinations of Exports of Cordless Power Drills by Value (%), 2006

Table 21: Destinations of Exports of Mains Powered Drills by Value (%), 2006

Table 22: Destinations of Exports of Portable Power Saws — Including Chain Saws, Circular Saws and Other Types — by Value (%), 2006

Table 23: Destinations of Exports of Other Handheld Power Tools — Excluding Drills and Saws — by Value (%), 2006

3. Industry Background

Recent History

Number of Companies

Employment

REGIONAL VARATIONS IN THE MARKETPLACE

DISTRIBUTION

HOW ROBUST IS THE MARKET?

LEGISLATION

KEY TRADE ASSOCIATIONS

British Home Enhancement Trade Association

Portable Electric Tool Manufacturers' Association

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

Alba PLC

Company Structure

Current and Future Developments

Financial Results

Black & Decker

Company Structure

Current and Future Developments

Financial Results

Earlex Ltd

Company Structure

Current and Future Developments

Financial Results

Einhell UK Ltd

Company Structure

Current and Recent Developments

Financial Results

Makita (UK) Ltd

Company Structure

Current and Future Developments

Financial Results

Robert Bosch Ltd

Company Structure

Current and Future Developments

Financial Results

Other Suppliers

OUTSIDE SUPPLIERS

MARKETING ACTIVITY

Table 24: Main Media Advertising Expenditure by Power Tool Manufacturers (£000), Year Ending March 2007

Table 25: Main Media Advertising Expenditure on Power Tools by the Leading DIY Chains (£000), Year Ending March 2006

Trade Fairs

5. Strengths, Weaknesses, Opportunities and Threats

THE TOTAL MARKET

Strengths

Weaknesses

Opportunities

Threats

DRILLS

Strengths

Weaknesses

Opportunities

Threats

SAWS

Strengths

Weaknesses

Opportunities

Threats

SANDERS AND GRINDERS, AND PLANERS

Strengths

Weaknesses

Opportunities

Threats

OTHER TOOLS

Strengths

Weaknesses

Opportunities

Threats

ACCESSORIES

Strengths

Weaknesses

Opportunities

Threats

6. Buying Behaviour

Consumer Penetration

Table 26: Household Ownership and Purchasing of Electric Power Tools (% of all households), 2002, 2004 and 2006

Replacement Buys and First-Time Buys

Table 27: Household Purchasing of Electric Power Tools for First-Time Buys and Replacement Buys (% of all households), 2006

Amount Spent

Table 28: Amount Spent on Electric Power Tool Purchases in the Last 12 Months (%†), March 2006

Ownership Profiles

Table 29: Ownership of Electric Power Tools (% of all households), 2006

Characteristics of Purchasers

Table 30: Purchasing of Power Tools in the Last 12 Months (% of all households), 2006

Hire of Tools and Equipment

Table 31: Those Who Have Hired Any Tools, Machinery or Equipment in the Last 12 Months (% of respondents), 2006

7. Current Issues

NEW PRODUCT LAUNCHES

Black & Decker

Einhell

Makita

Robert Bosch

8. The Global Market

CONTINUED GROWTH FOR THE GLOBAL POWER TOOLS MARKET

Table 32: Global Market† for Power Tools (Ebn and %), 2006

EUROPE: DIY POWER TOOL MARKET FLAT

US MARKET DIFFICULT

GROWTH MARKETS

9. Forecasts

INTRODUCTION

The Economy

Population

Table 33: Forecast UK Resident Population by Sex (000), Mid-Years 2007-2011

Gross Domestic Product

Table 34: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2007-2011

Inflation

Table 35: Forecast UK Rate of Inflation (%), 2007-2011

Unemployment

Table 36: Forecast Actual Number of Unemployed Persons in the UK (million), 2007-2011

Other Factors Affecting DIY Spending

FORECASTS 2007 to 2011

Table 37: The Forecast UK Consumer Market for Power Tools and Accessories by Value at Constant 2006 Prices (£m at rsp), 2007-2011

Table 38: The Forecast UK Consumer Market for Power Tools and Accessories by Value at Current Prices (£m at rsp), 2007-2011

Market Growth

Figure 2: Growth in the UK Consumer Market for Power Tools and Accessories by Value at Current Prices (£m at rsp), 2002-2011

FUTURE TRENDS

10. Company Profiles

Alba Plc

Black & Decker

Draper Tools LTD

Earlex Ltd

Einhell Uk Ltd

Makita (uk) Ltd

Robert Bosch Ltd

11. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

Confidence Improves

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007

Willingness to Borrow Slips Slightly

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2006-2007

SPENDING FROM SAVINGS

Slight Increase in Spending from Savings

Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007

Saving Grows in Relative Importance

Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), February 2006-2007

12. Further Sources

Associations

General Sources

Government Publications

Bisnode Sources

-Alba Plc
-Black & Decker
-Draper Tools Ltd
-Einhell Uk Ltd
-Makita (Uk) Ltd
-Robert Bosch Ltd