US tool demand worth $12.7 billion by 2018

Market research firm Freedonia Group sees US demand for power and hand tools increasing nearly 3 percent annually for the next several years to reach $12.7 billion in 2018.

Demand will come primarily from the professional market, where expensive power tools are positioned. Buyers in this segment generally prefer higher-quality tools that will pay off in the long run in terms of better performance and extended service life. Buyers in the consumer market, on the other hand, are more likely to be price-conscious and rarely need expensive heavy-duty power tools.

Within the professional market, future orders will come mostly from the recovering construction industry. Demand from the consumer market, meanwhile, will come from DIYers. Rising consumer spending and disposable income, and the increasing number of households will also contribute to demand.

Through the forecast period, power tools will be more popular than their manual counterparts, a reverse of the 2008-13 demand situation when hand tools were more popular. Growth opportunities will abound specifically within the electric tools subgroup as plug-in and cordless types are widely used by professionals and DIYers.