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.
