Report: Outdoor Power Equipment Demand to Grow 6.4% Annually
Apr 14, 2011
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U.S. residential and professional landscaper demand for outdoor power equipment saw declines during the recession, but is forecast to increase 6.4% annually to $11 billion in 2015 according to a new report from Freedonia Group.
The research firm said the major contributors to growth will be the improvement in the U.S. housing market, including growing sales of new and existing homes, as well as the recovery of the landscaping services business.
The report said outdoor power equipment OEMs will be able to enjoy a "strong rebound" in sales within the United States in the short-term future, but growth over the longer term will be moderated by slower product pricing increases and decreasing demand for professional contractor services from golf courses and other key markets.
While nearly three-quarters of the OPE market demand in is residential, Freedonia said, that share decreased during the recession since consumers typically had the option to postpone buying such equipment. The research firm said the housing market will improve and consumers' discretionary spending will increase, leading the firm to forecast a significant residential increase in sales through 2015. Commercial OPE sales are forecast to show "nearly double-digit growth" landscaping firms revenues improve. Golf courses' and governments' pent-up demand will lead to increased OPE purchasing in the short-term, but longer term will be operating with smaller budgets and will have less OPE dollars to spend.
The research firm also forecast that higher-priced OPE products will see the highest value gains: garden tractors, turf and grounds equipment, and rotary tillers. Electric equipment will take increasing sales shares as new electric product configurations are developed and as battery technology improves.
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