According to "Power and Hand Tools", a new study by The Freedonia Group, Inc., an industrial market research firm, U.S. demand for power and hand tools is forecast to increase nearly 5 percent annually (including price increases) to U.S. $15.4 billion in 2007. The study reports that advances will result from an improving outlook for residential repair expenditures, continued growth in new construction, and rising manufacturing output, which will reportedly create opportunities for pneumatic tools in particular.
Cordless products will continue to post the best gains, according to the study, benefiting not only from macroeconomic factors, but also from the products’ performance advantages in comparison to plug-in models. Convenience and ease of use will reportedly drive both professional and consumer users to continue to replace existing corded tools with cordless models.
The study forecasts that power tool demand is to outpace hand tool demands due to the continuing popularity of cordless electric products such as saws, sanders, polishers, and grinders. The inherent durability of hand tools is said to limit their demand.
The study also predicts that professional users will continue to comprise 69 percent of overall tool demand in 2007. This is reportedly due to the fact that professionals use a greater variety of tools, most of which are more expensive, than those used by consumers. Gains in the professional tool market will reportedly benefit from rising manufacturing output and the rising number and average age of vehicles in the U.S. motor vehicle park.
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