US hand tools demand at $5.8 billion by 2020

The demand for hand tools in the US is poised for a 1.7 percent CAGR and is estimated to be worth $5.8 billion in the next four years, according to market research firm Freedonia Group.

The fastest-growing market segments for the forecast period are multitools, handsaws and precision measuring tools. Sales of hand tools are seen to increase at a steady rate thanks to more housing starts and renovation. In June, housing starts in the US jumped 4.8 percent from the previous month.

Hand service tools, meanwhile, is said to be the product category that will have the slowest growth in sales. High market penetration level and durability are factors influencing this trend. Hand service tools do not get replaced often.

As regards US hand tool market challenges, power tools, which are becoming more affordable, are curtailing growth. Power tool imports are less costly alternatives to domestic products.