Abstract
Professional Portable Power Tools are a specialised sector of the overall portable power tool market. The market for professional portable power tools is highly competitive, with an estimated value for 2004 of �233m at manufacturers' prices and estimated at �244m in 2005.
The UK market for Professional Portable Power Tools is defined as power tools which are designated as such and are understood to be designed and manufactured to 'professional' or 'trade' standards. Within the context of this report, 'portable' means that the tool can be carried and operated by one person.
The UK market for Professional Portable Power Tools is defined as power tools, which are designated as such and are understood to be designed and manufactured to 'professional' or 'trade' standards. Within the context of this report, 'portable' means that the tool can be carried and operated by one person.
Over the past few years the market has exhibited a relatively low level of growth which is mainly attributed to variable conditions in the construction and engineering manufacturing industry, automotive refinishing, etc.
The market experienced relatively stable market conditions between 1998 and 2002, influenced by low levels of inflation, relatively low levels of construction and RMI at around 4% and a general decline in average prices across many of the product sectors.
2003 and 2004 saw investment levels in public sector spending rise as well as a general upturn in the new build and RMI sector. This impacted on the Power Tools market in 2003 and 2004, stimulating value growth across several of the product categories.
In terms of supply, whilst the key suppliers remain significant, indications are that the market has fragmented to some extent through the development of the own brand or generically branded products, offered by a number of distributors who have also grown share in the market in recent years.
Key suppliers within the sector include Makita, Bosch and Dewalt, all holding between 15 and 18% of the total market share. Smaller, but still significant companies such as Metabo and Ryobi are estimated to have increased market share by around 3 and 5%, partly due to the slight fragmentation of the market between 1999 and the beginning of this century, stimulated by the fall in unit cost due to increased levels of outsourcing from the far east.
Industrial product distributors, such as Screwfix, Machine Mart, Farnell etc, have grown their share of the distribution channels in recent years, along with the builders merchants who remain competitive in the sector.
The current threat to the independent or more specialist dealers is from the DIY multiples, such as B&Q, who are now offering a full range of power tools, both corded and cordless, which are marketed as professional use tools. These high quality products, from suppliers such as Dewalt are likely to result in smaller tradesmen purchasing from this channel, who are able to offer competitive pricing, rather than the traditional independents.
Future prospects for the sector are mixed, and whilst growth at, or above inflationary levels is likely in the next 3-4 years, the overall performance of the market remain highly dependent on the state of the UK construction industry and contractors output. As such, with signs of a downturn in the UK economy in late 2005, there are mixed messages from the market about the potential for growth in the short to medium term.
Leading into 2006, growth is likely to remain above inflationary levels, but is expected to steadily slow, in line with the performance of the UK economy. There is expected to be little growth within the domestic RMI sector, with consumer spending remaining uncertain for the next 3-4 years with expenditure being dampened by declining house prices and lower levels of consumer confidence.
Table of Contents
- 1. INTRODUCTION 6
- 2. EXECUTIVE SUMMARY 7
- 3. ECONOMIC ENVIRONMENT 10
- 3.1 GDP 10
- 3.2 INFLATION & INTEREST RATES 11
- 3.3 UNEMPLOYMENT 12
- 3.4 HOUSEHOLD CONSUMPTION 12
- 3.5 HOUSING & CONSTRUCTION 14
- 3.6 STERLING 15
- 3.7 POPULATION PROFILE 16
- 3.8 CONCLUSIONS 17
- 4 THE PROFESSIONAL PORTABLE POWER TOOL MARKET 18
- 4.1 MARKET DEFINITION 18
- 4.2 MARKET SIZE 19
- 4.2.1 Current Situation & Future Development 21
- 4.2.2 International Trade in Portable Power Tools 23
- 4.3 KEY MARKET INFLUENCES 26
- 4.3.1 Construction Output - Domestic and Non-Domestic 26
- 4.3.2 Manufacturing Industry Output 29
- 4.3.3 The Railway Sector 31
- 4.3.4 The Machine Tool Industry 32
- 4.3.5 Automotive Production 32
- 4.3.6 The Car Auto-Refinishing Trade 33
- 4.3.7 Wood Working and Floor Coverings 33
- 4.3.8 DIY Activity 34
- 4.3.9 Aerospace 36
- 5 PRODUCT SEGMENTATION 37
- 5.1 PRODUCT SECTOR OVERVIEW & SHARES BY VALUE 37
- 5.2 DRILLING AND BREAKING 38
- 5.2.1 Drills 41
- 5.2.2 Breakers/Hammers 42
- 5.3 CUTTING AND GRINDING 42
- 5.3.1 Disc Cutters 44
- 5.3.2 Grinders 45
- 5.3.3 Power Saws 45
- 5.3.4 Other Cutting Tools 46
- 5.4 CARPENTRY AND WOODWORKING 47
- 5.4.1 Sanders 48
- 5.4.2 Screwdrivers 49
- 5.4.3 Routers 49
- 5.4.4 Planers 50
- 5.4.5 Staplers/Nailers 50
- 6. KEY SUPPLIERS 51
- 6.1 KEY SUPPLIERS MARKET SHARES 51
- 6.2 SUPPLIER PROFILES 53
- 6.2.1 Robert Bosch Ltd 53
- 6.2.2 Makita 53
- 6.2.3 DeWalt - Black Decker 54
- 6.2.4 TTI (Techtronic Industries) /Ryobi/OEM 54
- 6.2.5 Atlas Copco 55
- 6.2.6 Hilti (Great Britain) Ltd 55
- 6.2.7 Hitachi Power Tools (UK) Ltd 55
- 6.2.8 Fein Industrial Power tools (UK) Ltd 55
- 6.2.9 Matsushita Electric 56
- 6.2.10 Metabo (UK) Ltd 56
- 6.2.11 Stayer Power Tools Ltd 56
- 6.2.12 Stanley Works Power Tools 57
- 7 DISTRIBUTION 58
- 7.1 SUPPLY STRUCTURE 59
- 7.2 KEY DISTRIBUTION CHANNEL SHARE 60
- 7.3 KEY DISTRIBUTION CHANNEL PROFILES 61
- 7.3.1 Builders/Plumbers Merchants 61
- 7.3.2 Industrial/Catalogue Distributors/Engineers Merchants 63
- 7.3.3 Tool/Plant Hire Outlets 70
- 7.3.4 Power Tool Servicing Dealers 73
- 7.3.5 DIY Multiples 74
- 7.3.6 Electrical Wholesalers 76
- 7.3.7 Other Channels (Direct, automotive, agricultural, marine) 77
- 8. FUTURE PROSPECTS 78
TABLES AND CHARTS
- CHART 1 UK PROFESSIONAL, PORTABLE POWER TOOLS MARKET BY VALUE Κ MSP- UK 1998-2008 8
- CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1990-2008 12
- CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1990-2006 13
- TABLE 4 EXCHANGE RATE FLUCTUATIONS 1997-2007 - THE POUND STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 15
- CHART 5 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 ('000) 16
- CHART 6 PROFESSIONAL PORTABLE POWER TOOLS MARKET - UK 1998-2005 BY VALUE 20
- CHART 7 UK PROFESSIONAL PORTABLE POWER TOOLS MARKET BY VALUE 2003-2008 22
- CHART 8 UK POWER TOOLS MARKET IMPORTS AND EXPORTS - DRILLS 23
- CHART 9 UK POWER TOOLS MARKET IMPORTS AND EXPORTS - SAWS 24
- CHART 10 UK POWER TOOLS MARKET IMPORTS AND EXPORTS - GRINDERS & SANDERS 25
- TABLE 11 CONTRACTORS HOUSING OUTPUT - NEW WORK AND RMI- CURRENT PRICES (� MILLION) 1998-2008 27
- TABLE 12 CONTRACTORS NON HOUSING OUTPUT - NEW WORK AND RMI - CURRENT PRICES (� MILLION) 1998-2004 28
- TABLE 13 OUTPUT OF THE PRODUCTION INDUSTRIES (INDEX 2001=100) 30
- TABLE 14 THE PRODUCTION OF CARS & COMMERCIAL VEHICLES IN THE UK 1998-2004 32
- TABLE 15 THE UK WOODWORKING MARKET ｙN MSP 1997-2004 34
- TABLE 16 NUMBER OF PROPERTY TRANSACTIONS IN ENGLAND AND WALES 1998-2004 35
- CHART 17 OVERALL PRODUCT CATEGORY MIX BY VALUE 2005 37
- CHART 18 DRILLING & BREAKING MARKET BY VALUE 1998-2008 Κ 38
- CHART 19 MIX BY VALUE FOR HAMMER & DRILLING PRODUCTS 2005 39
- CHART 20 MIX BY CORDLESS & CORDED PRODUCTS BY VALUE 2005 40
- CHART 21 CUTTING & GRINDING MARKET BY VALUE 1998-2008 Κ 43
- CHART 22 MIX BY PRODUCT BY VALUE WITHIN THE CUTTING& GRINDING SECTOR 2005 44
- CHART 23 CARPENTRY & WOODWORKING MARKET BY VALUE 1998-2008 Κ MSP 47
- CHART 24 PRODUCT MIX BY VALUE IN THE CARPENTRY & WOODWORKING MARKET 2005 48
- TABLE 25 SUPPLIERS SHARES OF SALES OF PROFESSIONAL PORTABLE POWER TOOLS BY VALUE 2004 52
- TABLE 26 DISTRIBUTION CHANNELS' SHARES OF PROFESSIONAL PORTABLE POWER TOOLS 2004 BY VALUE 60
- CHART 27 MERCHANTS MARKET SHARES 2004 62
- TABLE 28 UK INDUSTRIAL PRODUCTS DISTRIBUTORS - MARKET SHARES BY % VALUE 2004 64
- TABLE 29 POWER TOOL BRANDS OFFERED BY LEADING DISTRIBUTORS 2005 65
- TABLE 30 % OF SALES ATTRIBUTED TO POWER TOOLS BY DISTRIBUTOR 70
- TABLE 31 UK TOOL HIRE MARKET 1995-2004 AT HIRE MARKET PRICES 71
- TABLE 32 MARKET SHARES OF LEADING COMPANIES BY VALUE 2004 72
- CHART 33 DIY MULTIPLES MARKET SHARE 2004 75
- CHART 34 ELECTRICAL WHOLESALE MARKET SHARES BY VALUE 77
