Demand for chests and cabinets totaled $1.7 billion in 2017, accounting for the largest share of tool storage demand in a continuation of historical trends. Chests and cabinets are priced much higher than other tool storage products, which partially accounts for the high dollar sales. Through 2022, demand for chests and cabinets is expected to advance 1.6% annually to $1.8 billion. These and other trends are presented in Tool Storage Products, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Sales will be promoted by:
- continued strength in construction activity
- ongoing interest in DIY activities
- continued growth in aftermarket automotive repair
- product innovations that improve ease-of-use and functionality
Nevertheless, faster growth will be restrained by the high level of market maturity for most of these products, as well as by their durability, which limits the frequency of replacement sales. Although new sales opportunities are scarce in any given year, there will be some upgrade and replacement demand among current owners.
US demand for all types of tool storage products is forecast to rise 1.4% annually to $2.8 billion in 2022. Tool storage demand increases in tandem with hand and power tool demand. Evolving storage needs leads to expansions or upgrades in tool storage among consumers and professionals. China is the leading source for imported tool storage products, due to the country’s low labor costs and extensive manufacturing infrastructure. Recent developments in trade – particularly import duties associated with antidumping efforts and tariffs on imported steel and aluminum – will impact the market for the foreseeable future.
Tool Storage Products (published 09/2018, 162 pages) is available for $3900 from The Freedonia Group. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or email [email protected].
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