Hand Tool Demand to Be Impacted by Tariffs & Demographic Shifts Through 2022
U.S. demand for hand tools is projected to rise 1.4 percent annually to $5.7 billion in 2022. Growth will be sustained by rising homeownership rates among millennials and women, who represent new sales opportunities for hand tool manufacturers, as well as a growing interest in DIY activities among consumers. However, U.S.–imposed duties on imports of foreign steel and aluminum, as well as other products, will limit gains. These and other trends are presented in “Hand Tools in the US, 17th Edition,” a new study from The Freedonia Group, a Cleveland-based industry research firm.
While e-commerce represents the fastest-growing distribution channel for hand tools, home centers are expected to overtake direct sales/distributors as the leading sales channel by 2022. Due to the convenience and wide product selection available online, both professional and consumer tool users are increasingly turning to e-commerce for their hand tool needs. As a result, more professional hand tool sales will be made through e-commerce platforms, which will correspond with gains for home centers and declines for direct sales and distributors through the forecast period.
Hand saws will see the fastest growth, while hand service tools will remain the largest product segment. Continued strength in building construction and healthy increases in home improvements will support hand tool demand across all segments, particularly hand saws, which is expected to be the fastest growing product segment through 2022. Dollar gains in all product categories will be supported by increased demand for value-added features that improve durability, ease-of-use and ergonomics.
“Hand Tools in the US, 17th Edition” (published August 2018, 198 pages) is available for $4,900 from The Freedonia Group. For further details, contact Corinne Gangloff at (440) 684.9600 or email@example.com.