Through 2024, professional hand tool demand is forecast to rise 0.6% per year to nearly $4.0 billion and account for 68% of total US hand tool market gains, according to a new Freedonia Group analysis:
- Growth will be restrained by ongoing trends toward low-cost imports over more expensive Made-in-USA products.
- Gains will also be constrained by near-term declines in construction, manufacturing, and to a lesser extent automotive aftermarket activity due to efforts to mitigate the impact of COVID-19:
Professional sales dominate the hand tool market because professional end users are generally both more willing to pay a premium for higher quality tools and replace tools more frequently than consumers:
- Construction will remain the largest professional market through 2024, accounting for 43% of segment sales as construction professionals need heavy-duty tools and often prefer to own their own sets.
- Automotive aftermarket demand will be supported to some degree by the rising average age of the US motor vehicle park and continued strength in automotive repair and maintenance revenues.
Automotive Aftermarket Segment Buoyed by US Consumer Trends
Professional hand tool sales will also be supported by an increase in the number of automotive service technicians and mechanics, as well as the growing number of employers that purchase tools for mechanics to attract new employees amid a skilled labor shortage, as most consumers do not perform auto repairs themselves.
Mechanics spend substantially on tools, both to purchase the latest innovative items and to replace broken equipment, so employment gains in this sector often entail purchases of additional hand tools so workers do not have to wait to use the tools they need. In addition, some tool dealers offer financing to mechanics to encourage large tool purchases.
Looking for More?
Hand Tools is now available from The Freedonia Group. This study examines the professional and consumer markets for hand tools by tool type.