The market for do-it-yourself (DIY) power tools and accessories has slowed from its recent boom, and progress in 2004 was fairly flat. It estimates that the total market value was £356m at retail selling prices (rsp) in 2004, with growth of 1.1% from 2003.
The range of products is large and includes: drills; hammer drills; screwdrivers;
Between 2000 and 2004, there was continued growth in the number of households, an increase in disposable income and a rise in general expenditure on DIY activities, which have helped drive spending in the power tools market. In addition, popular television programmes showing power tools being used in room and house makeovers provide inspiration for home improvements and help to show that tasks can be quicker and lighter with the use of power tools.
Competition intensified between 2000 and 2004, particularly in the lower and middle-price sectors of the market. Manufacturing has moved to low-cost countries, especially China, and production of consumer power tools in the UK underwent a sharp reduction during this period, to the point where few brands are made in this country. Entry-level prices have fallen steeply. The DIY superstores dominate supply and their own labels have a large share of the market. Other types of retail outlet have lost market share, but Internet retailing showed strong growth in 2004, which has continued in 2005.
The large manufacturers have fought back against the own labels with a high level of innovation and improvement of products. In 2004 and early 2005, some of the new tools on the market have featured dust extraction; integral work lights or the use of laser beams as guides for saws (as levelling tools and as measuring devices); and the use of Lithium Ion (Li-Ion) batteries in cordless tools. The design of tools continues to improve, with lower-weight tools, better grips and reduced transmission of vibrations.
It expects gradual growth of 2% in the value of the market, by constant prices, from 2005 to 2009. In terms of current prices, the effects of general inflation, the rising costs of raw materials and the trading up to products with better features seem likely to outweigh further erosion in prices resulting from increased penetration of Far East imports. Key Note forecasts an overall growth of 9.7% at current prices from 2005 to 2009.
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