This first edition of
the tool distribution market provides a comprehensive analysis of
the structure of the industry, and reviews the main distribution
channels including DIY multiples, industrial products
distributors, specialist distributors, builders’ merchants and
others including the Internet, garden centres, independents
hardware stores and electrical wholesalers. The distributors’ main
product sectors are analysed including the product market sizes
and trends. The report also provides a forecast of market
prospects up to 2015.
The health of the tool
distribution market is directly related to the performance of the
UK building and construction sector, influenced by both new-build
and repair, maintenance & improvement activities. Until late
2007/early 2008, the UK economy experienced an unprecedented
period of growth, underpinned by a buoyant housing market, low
inflation and strong consumer spending. This buoyant market
facilitated annual growth rates of around 4% in the distributors’
market between 2005/07, reaching an estimated £1.2bn in 2007. In
2008 the UK economy entered a period of more difficult trading due
to the effects of the ‘credit crunch’ and subsequent recession in
2009. The trend from ‘get someone in’ to ‘do it yourself’ saw the
DIY tools sector take share from the professional tools sector.
The professional tools sector was also impacted by the downturn in
housebuilding and non-domestic construction. The tool distribution
market declined by an estimated 14% over this period, reaching a
market size of around £1,030m in 2009. The market stabilised in
2010 as housebuilding recovered as well as some of the
non-domestic construction sectors that showed improved
performances, such as education.
The tool distribution
merchant market is highly fragmented with national organisations
competing in the market place with many regional and local
distributors. The key distribution channels are DIY multiples,
industrial products distributors, specialist distributors,
builders’ merchants and others including the Internet, garden
centres, independent hardware stores and electrical wholesalers.
Increasing numbers of e-tailers are offering power and hand tools
online, with the Internet also benefiting the specialist
distributor channel as it removes the constraints of their
location from providing a national service.
The distributors’
product range includes tools for driving, drilling & breaking;
cutting & grinding; carpentry & woodworking; and gardening
(although there continues to be a blurring of the definitions
within the building tools sectors). The largest product category
in the market is the driving, drilling & breaking tool sector that
includes the popular combi-drill.
In 2011 it is expected
that there will be contrasting performances from private and
public sector construction, with the former recovering and the
latter falling sharply. The tool distribution market is expected
to recover and show growth in 2012, reaching a market size of
£1.1bn in 2015.
