Power & Hand Tools

US outlook for Power & Hand Tools with forecasts to 2005 and 2010

New study finds:

• US demand for power and hand tools is forecast to increase 4.2 percent annually (including price increases) to $15.1 billion in 2005

• Growth in consumer tool demand will outpace that of the professional market through 2005, due to the ongoing popularity of do-it-yourself activities and the trade-up by consumers to feature-laden power tools

• Six firms -- Stanley, Black & Decker, Bosch, Pentair, Snap-On and Danaher -- together comprised nearly half of the market in the year 2000 Freedonia Industry Study #1478 Study Publication Date: October 2001 Price: $3,800 Power & Hand Tools Pages: 241

Power & Hand Tools, a new study from The Freedonia Group, provides you with an in-depth analysis of major trends in the industry and the outlook for product segments and major markets -- critical information to help you with strategic planning.

This brochure gives you an indication of the scope, depth and value of Freedonia's new study, Power & Hand Tools. Ordering information is included on the back page of the brochure.

Brochure Table of Contents

Study Highlights ...... 2 Table of Contents and List of Tables and Charts ...... 4 Sample Pages and Sample Tables from: Market Environment ...... 6 Power Tools ...... 7 Hand Tools ...... 8 Power and Hand Tool Markets ...... 9 Industry Structure and Company Profiles ...... 10 List of Companies Profiled ...... 11 Forecasting Methodology ...... 12 About the Company ...... 13 Advantages of Freedonia Reports ...... 13 About Our Customers ...... 14 Other Titles From Freedonia ...... 15 Ordering Information...... 16 Study Highlights

• US demand for power and hand tools is forecast to increase 4.2 percent annually (including price increases) to $15.1 billion in 2005.

• China has become the leading supplier of power and hand tools to the US, with exports more than tripling from 1995 to 2000.

• In the power tool segment, electric drills and saws are expected to show above average growth with a com- bined market approaching $3 billion in 2005.

• The rising number and average age of motor vehicles in the US park will boost gains for automotive hand tools since aftermarket repairs will become more common.

• Six firms -- Stanley, Black & Decker, Bosch, Pentair, Snap-On and Danaher -- together comprised nearly half of the market in the year 2000.

* Horticultural tools, lawn and garden equipment, bench top tools and paint brushes are not included in the scope of this study.

Power & Hand Tools #1478 Freedonia Industry Study 2 Study Highlights Power & Hand Tool Demand, 1995 Versus 2000 (million dollars) 8000

6000

4000 1995 2000

2000

Power Tools Hand Tools

Power & Hand Tool Supply & Demand (million dollars) % Annual Growth Item 1995 2000 2005 2010 00/95 05/00

Resident Population (mil people) 266.2 282.3 298.8 315.4 1.2 1.1 $ tools per capita 32.1 43.4 50.5 58.7 -- -- SUMMARY TABLE Power & Hand Tool Demand 8555 12250 15080 18500 7.4 4.2 Power Tools: 4967 7420 9430 11900 8.4 4.9 Electric Tools 3615 5580 7160 9095 9.1 5.1 Other Power Tools 1352 1840 2270 2805 6.4 4.3 Hand Tools 3588 4830 5650 6600 6.1 3.2

- net imports 727 1450 1830 2240 14.8 4.8

Power & Hand Tool Shipments 7828 10800 13250 16260 6.6 4.2

Power & Hand Tools #1478 Order form on last page 3 III. POWER & HAND TOOL SUPPLY & DEMAND General ...... 45 List of Contents, Demand ...... 45 Table - Power & Hand Tool Supply & Demand ...... 47 Chart - Tool Demand by Type ...... 48 Tables and Charts Shipments ...... 48 Table - Power & Hand Tool Shipments by Type ...... 50 Chart - Power & Hand Tool Shipments by Type ...... 50

IV. POWER TOOLS I. EXECUTIVE SUMMARY General ...... 51 Table - Power Tool Supply & Demand 53 Summary Table ...... 3 ...... Chart - Power Tool Demand by Type, 2000 ...... 53 II. MARKET ENVIRONMENT Electric ...... 54 Table - Electric Tool Supply & Demand 56 General ...... 4 ...... Macroeconomic Outlook ...... 4 By Power Source ...... 56 Cyclical Trends ...... 6 Table - Electric Tool Shipments by Power Source ...... 58 Chart - Electric Tool Shipments by Power Source 59 Table - Macroeconomic Environment ...... 8 ...... Long Term Trends ...... 9 Drills ...... 59 Short Term Trends ...... 9 Table - Electric Drill Supply & Demand ...... 62 Imports 62 Personal Income & Expenditure Patterns ...... 9 ...... Table - Personal Consumption Expenditures ...... 11 Chart - Electric Drill Imports by Source, 2000 ...... 63 Demographic Trends ...... 11 Exports ...... 63 Chart - Electric Drill Exports by Destination, 2000 64 Population Distribution ...... 12 ..... Table - US Resident Population Trends ...... 13 Saws ...... 64 Household Formation & Housing Stock Patterns ...... 13 Table - Electric Saw Supply & Demand ...... 66 Table - Household Formation & Housing Stock Patterns 15 Circular Saws ...... 66 Construction Activity ...... 15 Other Saws ...... 67 Table - Total Construction Expenditures ...... 17 Foreign Trade ...... 68 Chart - Electric Saw Imports by Source, 2000 70 Residential Construction ...... 17 ...... Table - New Residential Construction Expenditures ...... 19 Chart - Electric Saw Exports by Destination, 2000 .... 70 New Housing ...... 19 Sanders, Polishers & Grinders ...... 71 Table - Average Housing Starts by Type ...... 20 Table - Electric Sander, Polisher & Grinder Improvements & Repair ...... 21 Supply & Demand ...... 72 Table - Residential Improvement Imports ...... 73 & Maintenance/Repair Expenditures ...... 21 Chart - Electric Sander, Polisher & Grinder Nonresidential ...... 21 Imports by Source, 2000 ...... 73 Table - Nonresidential Building Construction Expenditures ... 23 Exports ...... 74 Nonbuilding ...... 23 Chart - Electric Sander, Polisher & Grinder Table - Nonbuilding Construction Expenditures ...... 25 Exports by Destination, 2000 ...... 74 Motor Vehicle Outlook ...... 25 Screwdrivers ...... 75 Table - US Motor Vehicle Stock ...... 26 Table - Electric Screwdriver Supply & Demand ...... 76 Industrial Sector Trends ...... 27 Planers & Routers ...... 77 Table - Nonresidential Fixed Investment ...... 28 Table - Electric Planer & Router Supply & Demand ... 78 Manufacturers’ Shipments ...... 28 Imports ...... 78 Table - Manufacturers’ Shipments ...... 30 Chart - Electric Planer & Router Imports Pricing Trends ...... 30 by Source, 2000 ...... 79 Table - Power & Hand Tools Pricing Trends ...... 32 Exports ...... 79 Technology ...... 33 Chart - Electric Planer & Router Exports US Foreign Trade ...... 35 by Destination, 2000 ...... 80 Table - Power & Hand Tools Foreign Trade ...... 36 Hammers ...... 80 Imports ...... 36 Table - Electric Hammer Supply & Demand ...... 81 Chart - Power & Hand Tool Imports by Type, 2000 ...... 39 Other Electric Tools ...... 81 Chart - Power & Hand Tool Imports by Source, 2000 .... 39 Table - Other Electric Tool Supply & Demand ...... 82 Exports ...... 40 Parts & Attachments ...... 83 Chart - Power & Hand Tools Exports by Type, 2000 ...... 42 Table - Electric Parts & Attachments Supply & Demand .. 85 Chart - Power & Hand Tools Exports Pneumatic ...... 85 by Destination, 2000 ...... 42 Table - Pneumatic Tool Supply & Demand ...... 88 World Outlook ...... 43 Foreign Trade ...... 88

Power & Hand Tools #1478 Freedonia Industry Study 4 Drills & Screwdrivers ...... 89 Chisels 128 Table - Pneumatic Drill & Screwdriver Supply & Demand .... 90 ...... Table - Chisel Supply & Demand 129 Sanders, Polishers & Grinders ...... 90 ...... Table - Pneumatic Sander, Polisher & Grinder Axes, Adzes & Hatchets ...... 129 Table - Ax, Adze & Hatchet Supply & Demand 130 Supply & Demand ...... 91 ...... Hand Saws 130 Impact Wrenches ...... 92 ...... Table - Hand Saw Supply & Demand 132 Table - Pneumatic Impact Wrench Supply & Demand .... 93 ...... Miscellaneous Hand Tools 132 Percussion Tools ...... 93 ...... Table - Miscellaneous Hand Tool Supply & Demand 134 Table - Pneumatic Percussion Tool Supply & Demand ... 94 ...... Other Pneumatic Tools ...... 95 VI. POWER & HAND TOOL MARKETS Table - Other Pneumatic Tool Supply & Demand ...... 96 General 135 Parts & Attachments ...... 96 ...... Table - Pneumatic Parts & Attachments Table - Power & Hand Tool Demand by Market ...... 136 Chart - Power & Hand Tool Demand by Market 137 Supply & Demand ...... 97 ...... Professional Demand 137 Engine-Driven ...... 97 ...... By Type 138 Table - Engine-Driven Tool Supply & Demand ...... 100 ...... Chart - Engine-Driven Chain Saw & Parts Table - Professional Tool Demand by Type ...... 139 By Sector 140 Imports by Source, 2000 ...... 101 ...... Chart - Engine-Driven Chain Saw & Parts Table - Professional Tool Demand by Sector ...... 141 Chart - Professional Tool Demand by Sector 141 Exports by Destination, 2000 ...... 101 ...... Construction 142 Other Power Tools ...... 102 ...... Table - Construction Tool Demand 143 Table - Other Power Tool Supply & Demand ...... 103 ...... Automotive Aftermarket ...... 143 V. HAND TOOLS Table - Automotive Aftermarket Tool Demand ...... 145 Industrial & Other Professional Services 145 General ...... 104 ...... Table - Industrial & Other Professional Tool Demand 146 Table - Hand Tool Supply & Demand ...... 105 .... Consumer Demand 147 Chart - Hand Tool Demand by Type, 2000 ...... 106 ...... Table - Consumer Tool Demand by Type 149 Hand Service Tools ...... 106 ...... Table - Hand Service Tool Supply & Demand ...... 108 VII. INDUSTRY STRUCTURE Chart - Hand Service Tool Demand by Type, 2000 ...... 109 General 150 Wrenches ...... 109 ...... Power Tools 151 Table - Wrench Supply & Demand ...... 110 ...... Hand Tools 152 Shipments by Type ...... 110 ...... Industry Structure 152 Foreign Trade ...... 112 ...... Power Tools 153 Chart - Wrench Imports by Source, 2000 ...... 113 ...... Hand Tools 154 Chart - Wrench Exports by Destination, 2000 ...... 113 ...... Market Share 155 Pliers ...... 114 ...... Table - US Power & Hand Tool Sales by Company, 2000 156 Table - Pliers Supply & Demand ...... 115 .... Chart - Power & Hand Tools Market Share, 2000 157 Imports ...... 115 ...... Power Tools 157 Chart - Pliers Imports by Source, 2000 ...... 116 ...... Chart - Power Tools Market Share, 2000 160 Exports ...... 116 ...... Hand Tools 160 Chart - Pliers Exports by Destination, 2000 ...... 117 ...... Chart - Hand Tools Market Share, 2000 162 Specialized Automotive Tools ...... 117 ...... Product Development 162 Table - Specialized Automotive Tool Supply & Demand ... 118 ...... Manufacturing 163 Screwdrivers ...... 118 ...... Marketing 164 Table - Screwdriver Supply & Demand ...... 119 ...... Private Labels 166 Imports ...... 120 ...... Distribution 168 Chart - Screwdriver Imports by Source, 2000 ...... 120 ...... Professional 169 Exports ...... 120 ...... Consumer 171 Chart - Screwdriver Exports by Destination, 2000 ..... 121 ...... Financial Issues 173 Hammers ...... 121 ...... Table - Selected Financial Ratios: Selected Table - Hammer Supply & Demand ...... 123 Power & Hand Tool Manufacturers 174 Other ...... 123 ...... Acquisitions & Divestitures 175 Table - Other Hand Service Tool Supply & Demand .... 125 ...... Table - Selected Acquisitions & Divestitures 176 Edge Tools ...... 125 ...... Cooperative Agreements 177 Table - Edge Tool Supply & Demand ...... 126 ...... Table - Selected Cooperative Agreements 179 Paint & Masonry Tools ...... 126 ...... Corporate Profiles 180-241 Table - Paint & Masonry Supply & Demand ...... 127 ......

Power & Hand Tools #1478 Order form on last page 5 Market Environment

The Market Environment Section discusses factors influencing power and hand tool demand, including

construction activity and demographic MARKET ENVIRONMENT trends.

US Foreign Trade - Imports This information provides you with an understanding and an analysis of the US imports of power and hand tools are expected to grow 4.5 percent annually through 2005, reaching $3.9 billion. US imports growth will outpace export gains climate in which the power and hand due to the influence of lowSAMPLE cost developing PAGE nation manufacturers, which are tools industry operates. becoming increasingly important producers based on their low cost wage pool. In addition, European producers from countries with well-established tool industries will benefit from their technological expertise, as well as from economies of scale. However, these factors will be offset to some extent by the slowing of US demand.

Electric tools comprise the largest portion of imports, accounting for 36 percent of the total in 2000. The growth of electric tool imports is due to the exploding popularity of these tools, in particular cordless models. Price is an especially critical decision factor in the DIY segment, because typical consumers do not expect to use power tools on a frequent basis and are therefore unlikely to favor higher price items, even if performance features are added. Therefore, imports from lower cost nations such as China have risen dramatically, causing imports of electric tools to now outnumber hand service tools.

Hand service tools are the second most common import category, comprising 30 percent of the total in 2000. Imports of these products benefit from their commodity-like nature, which results in these units being highly subject to pricing competition. Naturally, these factors provide opportunities for producers in developing Asian and other nations, which have significantly lower labor and materials costs than US producers.

China, which accounted for 27 percent of total US tool imports in 2000, became the leading single supplier during the 1990s and continues to widen its lead. Originally a producer of primarily lower-end hand tools for consumer markets,

Power & Hand Tools #1478 Freedonia Industry Study 6 Power Tools

The Power Tools Section provides POWER TOOLS demand for historical years and forecasts growth to 2005 and 2010. Circular Saws

Circular saw shipments are forecast to grow 6.2 percent annually to $555 million Products discussed include: in 2005. Gains will be adversely affected by theSAMPLE overall deceleration PAGE of construction expenditures, which are a key indicator due to the prevalence of circular saws in these applications. However, opportunities will continue to exist due to the Electric spreading use of cordless models and the respectable outlook for residential - Drills improvement expenditures. Circular saws will continue to dominate electric saw - Saws shipments, accounting for over 50 percent of the total based on their widespread use in a variety of consumer and professional applications. - Sanders, Polishers & Grinders - Screwdrivers Circular power saws are used mainly to cut wood sheets, but are also effective for - Planers & Routers cutting fiberglass, ceramics, certain metals, laminates and plastics. The blade of a circular saw spins away from the user and can make both square and beveled cuts. - Hammers The size of a circular saw is measured by the diameter of the blade, with most blade - Other Electric Tools diameters between five and ten inches. The most commonly purchased circular saws have blade diameters of 7.25 or 7.5 inches. - Parts & Attachments

Pneumatic As with other power tools, product innovations, such as the development of - Drills & Screwdrivers lighter, more flexible circular saws, will boost growth. Examples of recent product introductions include Ryobi’s CSB130K circular saw in September 2000. This - Sanders, Polishers & Grinders 7.25-inch saw features an all ball bearing, 13-amp motor; helical gears; and die-cast - Impact Wrenches aluminum blade guards. In addition to product innovations, demand for circular saws will also benefit from the industrywide trend toward packaging tools in kits, - Percussion Tools Pneumatic Sander, Polisher & Grinder Supply & Demand which are designed to appeal to DIY consumers. For example, in August 2001, - Other Pneumatic Tools (million dollars) Milwaukee Electric introduced the 6310-27 combination kit, which includes a - Parts & Attachments Item circular saw, a T-handle driver/drill,1990 a 1995SAWZALL 2000 saw and a 2005 work light. 2010

Resident PopulationOther (million Saws --persons) Other electric249.5 saws include 266.2 saber or 282.3 jig saws, 298.8reciprocating 315.4 saws and $ sander, polisherelectric & grinder chain persaws. capita Shipments 0.3 of other 0.4saws are projected 0.4 to 0.4 grow 5.8 0.5percent per SAMPLE TABLE Sander, Polisher & Grinder Demand 85 100 115 130 145

-net imports 15 20 25 30 35

Sander, Polisher & Grinder Shpts 70 80 90 100 110

% sander, polisher & grinder 13.3 11.5 8.8 8.0 7.1 Pneumatic Tool Demand 640 870 1310 1625 2035

Power & Hand Tools #1478 Order form on last page 7 Hand Tools

The Hand Tools Section provides demand information and forecasts for the following types: HAND TOOLS

Hand Service Tools Pliers - Wrenches Demand for pliers is forecast to rise 3.8 percent per annum through 2005, - Pliers reaching $555 million. Gains will outpace the hand tool average due to a greater SAMPLE PAGE - Specialized Automotive Tools degree of product innovation than many other hand tools. In addition to - Screwdrivers ergonomic improvements, gains will continue to result from the use of specialized, more expensive pliers (e.g., pliers with antistatic handles) and application-specific - Hammers products (e.g., pliers developed for use in the smaller engine compartments of - Other Hand Service Tools newer automobiles). In addition, advances will benefit from the fact that pliers Edge Tools face little direct competition from power products, having no power-driven - Paint & Masonry Tools counterpart, which ensures a fairly steady rate of growth. However, these factors will be offset somewhat by the slowing rate of manufacturing output increases and - Chisels by price competition from imports for nonspecialized models. - Axes, Adzes & Hatchets Hand Saws Pliers are derivatives of wrenches that are used to hold, bend, cut, pinch and twist objects. These tools are usually made from formed metal alloys with rubber Miscellaneous Hand Tools coatings on the handles for greater comfort and protection from electric currents. Pliers can be classified into two subsegments: solid joint (needle- nose pliers, wire cutters, wire twisters and certain snips); and slip joint (tongue-and-groove pliers Ax, Adze & Hatchet Supply &and Demandlocking pliers). (million dollars) Product innovations include Klein’s July 2001 introduction of a new series of Item KLEIN diagonal1990 wire 1995 twisting 2000pliers for 2005securing critical 2010 fasteners that may have the tendency to loosen. KLEIN diagonal wire twisting pliers are available in a Resident Population (million persons)right-hand249.5 twist style 266.2 and a reversible 282.3 twist 298.8 style that 315.4 rotates both clockwise and $ ax, adze & hatchet per capita counter-clockwise.0.09 0.09In August 0.092000, Alltrade 0.10 introduced 0.10 ALLTRADE pivot jaw locking pliers, which feature SAMPLEa pivoting jaw surfaceTABLE enabling them to grip irregu- Ax, Adze & Hatchet Demand 23 24 26 30 32 larly shaped pieces better than conventional locking pliers. In August 2000, -net imports Channellock 23455introduced the SOLAR product line, consisting of linemen’s pliers,

Ax, Adze & Hatchet Shipments© Copyright 21by The Freedonia 21 Group, 22 Inc. 25 27

% ax, adze & hatchet 9.1 6.7 5.9 5.7 5.2 Edge Tool Demand 253 358 443 525 615

Power & Hand Tools #1478 Freedonia Industry Study 8 Markets Sample page from Freedonia Industry Study

The#1117 Markets Fractional Section analyzes Horsepower trends Motors and considers the threats and POWER & HAND TOOL MARKETS opportunities in each of the major markets for power and hand tools. Consumer Demand The information presented will Demand for power and hand tools in the consumer market is forecast to rise 4.9 help you: percent annually through 2005, reaching $4.8 billion. Advances are expected to outpace the professional segmentSAMPLE due to consumer PAGE demand for more powerful, • Focus your sales and marketing sophisticated power tools. Advances will result from the continued popularity of do-it-yourself activities, especially in light of a slowing macroeconomy which will efforts on high growth areas. discourage some homebuyers from investing in newer, more expensive homes. These homeowners are also more likely to attempt home repairs, choosing to save • Propose new areas for development. the expense of hiring a professional. The rising average age of the US housing stock and the subsequent rising rate of growth for residential improvement expenditures will create opportunities.

Consumer demand for power tools is expected to rise 5.4 percent per year through 2005. Advances will result from the development and diffusion of better performing cordless tools. Growing consumer interest in DIY activities and trends toward the purchase of more powerful products will also create opportunities. Power tool producers are targeting the consumer market with power tool kits such as Black & Decker’s VERSAPAK line. These kits are designed to offer maximum value for the beginning or intermediate level DIYer. Demand for hand tools, on the other hand, is projected to increase 3.7 percent annually through 2005. Advances will be limited by the high penetration levels of hand tools in the consumer market and the products’ inherent durability and limited potential for innovation. As in the professional market, hand tools are also less expensive than power tools, further limiting dollar advances. Automotive Aftermarket Tool Demand

(million dollars) Demand for tools among DIYers is the most important trend affecting the consumer market in the last decade. The DIY market for tools is highly depen- Item dent on1990 factors 1995which are 2000correlated 2005to the expansion 2010 and financial stability of the aggregate housing environment, including residential construction outlays, trends Motor Vehicles In Use (million) 188.4 201.5 220.0 241.0 261.0 in household formations and mortgage interest rates, demographic and employ- $ tools/vehicle 8.5 10.4 13.6 15.2 17.4 SAMPLE TABLE Automotive Aftermarket Demand 1597 2095 3000 3675 4540

% automotive 34.0 35.1 35.5 35.8 36.1 Professional Tool Demand 4696 5968 8450 10260 12570

Power & Hand Tools #1478 Order form on last page 9 Industry Structure & Company Profiles

The Profiles Section analyzes 38 compa- INDUSTRY STRUCTURE nies active in the U.S. power and hand tools market. These profiles represent a Private Labels sampling or cross-section of the types of

companies involved in the industry. A popular marketing strategy in the power and hand tools industry is the sale of private-label products, a technique utilized primarily in the consumer market. Gain a better understanding of your Private-label products are manufactured by large tool producers but marketed by competition and analyze your and under the brand name of a given retailer. For tool makers, the manufacture of private-label products boosts SAMPLEsales and production. PAGE Producers are able to offer the company's position in the industry with products at a somewhat lower price, since costs for marketing and advertising are information about: passed along to the retailer. Using private labels also helps large producers to capitalize on the lower price categories while protecting the integrity and pricing • industry composition of their branded products. Off-shore bidding on private-label contracts among US retailers has become common.

COMPANY PROFILES • market share Private-label products are generally sold at DIY centers and retail for approxi- mately 15 percent less than their national brand counterparts. Hand tools, in • product development Sears, Roebuckparticular, and Company are very amenable to private labeling, because they are most commonly 3333 Beverly purchasedRoad at DIY retail outlets. In addition, the perception among many Hoffman Estates,consumers IL 60179 that hand tools are a commodity item also boosts sales. For the retailer, • manufacturing 847-286-2500private-label products are used for promotional purposes, with retailers offering http://www.sears.comvery low prices to attract customers to the store. • marketing Existing private-label hand tool linesSAMPLE include Kmart’s PAGE BENCHTOP, Sears’ Sears conductsCRAFTSMAN merchandising and and Home credit Depot’s operations HUSKY through lines. three Power segments: tools have traditionally • distribution Retail, Servicesbeen and less Credit. amenable The Companyto private labeling.operates department, Due to the relativelyhome and higher level of automotive stores,technology, and offers users services have tended on all tomajor prefer brands established of home brand products. names, In believing that this • private labels 2000, the Companyinsures had better revenues quality. of However,$40.9 billion power and tools employed are offered 323,000. under private labels such as Sears’ CRAFTSMAN. • financial issues The Company is active in the SAMPLEpower and hand PAGE tool industry through its Retail segment, whichIn had2001 2000 Wal-Mart revenues abandoned of $29.7 thebillion. private-label Of those handsales, tool full-line strategy Sears when it reached stores accountedan agreementfor revenues with of $23.4Stanley billion, to market while its Specialty tools. Wal-Mart stores, including made the move because • acquisitions & divestitures Sears Hardwareit feltstores, Stanley’s accounted reputation for $6.3 for billion. quality Sears would full-line boost salesstores over and SearsWal-Mart’s previ- Hardware© Copyright storesously offer by existing Thetools Freedonia madePOPULAR by aGroup, variety MECHANICS Inc. of unaffiliated line. manufacturers. In • cooperative agreements addition, the Company sells its own private-label CRAFTSMAN tools.

The CRAFTSMAN line encompasses both power and hand tools, as well as accessories and related items. Power tools include corded drills, saws, planes, sander/buffer/grinders, routers and rotary tools, as well as cordless drills and screwdrivers. Among the CRAFTSMAN line of power and hand tools are specialty

Power & Hand Tools #1478 Freedonia Industry Study 10 Companies Profiled Actuant Corporation Hilti Corporation Applied Power Incorporated Hitachi Limited Calterm Incorporated Illinois Tool Works Incorporated Del City Wire Company Incorporated DUO-FAST Corporation Enerpac US Paslode Gardner Bender Ingersoll-Rand Company Alltrade Incorporated Klein Tools Incorporated American Tool Companies Incorporated Kmart Corporation Atlas Copco AB Leatherman Tool Group Incorporated Chicago Pneumatic Tool Company Makita Corporation Milwaukee Electric Tool Corporation Pentair Incorporated Beere Precision Medical Instruments Incorpo- Delta Machinery rated DeVilbiss Air Power Company Black & Decker Corporation Porter-Cable Corporation Blount International Incorporated Ryobi Limited Oregon Cutting Systems Sears, Roebuck and Company Bosch (Robert) GmbH SENCO Products Incorporated S-B Power Tool Company LLC Snap-On Incorporated Vermont American Corporation Bahco Group AB Channellock Incorporated SPX Corporation Cooper Industries Incorporated The Stanley Works Danaher Corporation Stihl (Andreas) AG & Company Armstrong Tools TechTronic Industries Company Limited Jacobs Chuck Manufacturing Company Ryobi Technologies Incorporated Deere & Company Textron Incorporated Homelite Incorporated Fairmont Klauke Daniels Manufacturing Corporation TRUMPF Group Electrolux AB US Industries Incorporated Cushion Cut Ames True Temper Incorporated Frigidaire Home Products Wal-Mart Stores Incorporated JKS Lamage Magnum Diamond & Machinery Matco Tools Emerson Electric Company Applied Concepts Incorporated Ridge Tool Company Fimalac SK Hand Tool Corporation Strafor Facom Great Neck Saw Manufacturers Incorporated

Power & Hand Tools #1478 Order form on last page 11 Forecasting Methodology

Freedonia does not just collect and reprint data; Freedonia develops data. Our analysts thoroughly investigate an industry by extensively interviewing key industry participants and analyzing information from sources such as associations, government and trade literature. Once this The Freedonia research is complete, Freedonia establishes Economics Group Freedonia one set of forecasts. All writing, editing In-house Research Consistent framework and forecasting is done in-house to assure of economic indicators on . . . • Quantitative forecasting quality and consistency. In cases where • Resident Population • Industry structure & market • Motor Vehicles in Use share analyses data does not exist, Freedonia develops the • Gross Domestic Product (GDP) • Product analyses & forecasts data based on input/output ratios, bills of . . . and many others materials and flow charts. The following chart summarizes Freedonia's methodology:

Methodology for Power & Hand Tools

Proprietary Extensive Interviews Electronic Database • Key participants • Trade publications • Industry experts • Government reports • End-users • Corporate literature • Online databases . . . and many others

Power & Hand Tools #1478 Freedonia Industry Study 12 The Freedonia Group, Inc. is a leading international industry study/ About database company. The Freedonia Group Since 1985, Freedonia has published over 1,600 titles covering areas such as chemicals, coatings and adhesives, building materials, plastics, industrial components and equipment, health care, packaging, household goods, security, and many other industries.

Freedonia has produced a wide variety of titles, including:

• Power Lawn & Garden Equipment • Automotive Aftermarket in North America • World Power Tools • Lamps

Because Freedonia is a reliable information source, our forecasts are cited in numerous publications such as The Wall Street Journal, National Home Center News and Purchasing.

Advantages In-house operations of Freedonia Reports Because all of our staff work at the same location, interaction between analysts and departments provides a strong system of checks and balances.

Consistency Our Economics Group develops indicators that are used by all analysts. Therefore, every Freedonia study is based on a consistent set of economic assumptions (GDP, resident population, motor vehicles in use, etc.)

Reliable forecasts Because all of our forecasts consider the environment in which a product or industry is operating, as well as threats and opportunities to the market, Freedonia forecasts are reliable indicators of future performance.

One-on-one interviews All studies are produced by conducting interviews with key industry participants and end-users.

Proprietary electronic database Freedonia’s analysts can tap into an extensive in-house electronic database containing corporate literature (including private company information), trade publications, government reports and many other sources of information.

Power & Hand Tools #1478 Order form on last page 13 About Our Customers

Freedonia's clients include major US and international companies in the manufacturing, services, consulting and financial sectors.

Typical purchasers of Freedonia studies :

• Key Executives • Corporate Planners • Market Researchers • Financial Analysts • Information Centers • New Product Developers • Merger & Acquisition Specialists

Since 1985 we have provided research to customers ranging in size from global conglomerates to one person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia research to help with their strategic planning.

Some of Freedonia's customers in the power and hand tools market include: Black & Decker, Bosch (Robert) GmbH, Cooper Industries, Emerson Electric, Illinois Tool Works, Pentair and Snap-On.

Power & Hand Tools #1478 Freedonia Industry Study 14 Lamps US demand for lamps will grow 3.9% annually Power & Hand Tools - Other Titles through 2005, driven primarily by sales of higher- Private Companies Report priced energy-efficient fluorescent and high inten- Seven private producers each had total power and sity discharge (HID) lamps. Demand will also ben- hand tool sales of over $100 million in 2000, one From Freedonia efit from the large installed base of lamps in resi- of which had over $800 million. Four of the seven dential and nonresidential buildings. This study focus mainly or exclusively on power tools, and analyzes the $3.8 billion US lamp industry to 2005 three primarily produce hand tools. This report and 2010 by type and market. It also reviews com- profiles over 130 privately-held US companies petitive lighting methods such as LEDs and fiber (e.g., American Tool, Klein Tools, Leatherman For more information about optics, presents market share data and profiles Tool, S-B Power Tool, Senco Products, Stihl, leading companies. TRUMPF). It also details market share, analyzes these or other Freedonia titles, #1479...... 10/01...... $3,600 acquisition trends, lists firms by product and loca- please contact us at: tion, and forecasts industry demand. #1445...... 7/01...... $3,200 The Freedonia Group, Inc. World Diesel Engines & Parts World Power Tools World diesel engine demand will grow 5.5% annu- World demand for power tools will grow 5.8% per Phone: (440) 684-9600 ally through 2005. Gains will be driven by the year through 2005. Gains will result from rising (800) 927-5900 lower price of diesel fuel relative to gasoline in construction spending in developing nations and Western Europe, and the greater fuel efficiency of the popularity of large home center stores and “do- Fax: (440) 646-0484 diesel engines versus gasoline engines in general. it-yourself” home repairs in developed countries. The stationary segment (e.g., industrial, power gen- Electric tools will remain dominant and grow the eration) will grow the fastest worldwide. This study fastest, especially electric saws. This study analyzes analyzes the US$73 billion world diesel engine in- the US$18.5 billion world power tool industry to dustry to 2005 and 2010 by application, region and 2005 and 2010 by product, region and for 22 coun- for 26 countries. It also details market share and tries. It also details market share and profiles lead- profiles key firms. ing firms. #1476...... 10/01...... $4,500 #1419...... 5/01...... $4,500

Portable Power Supplies The US market for portable power supplies will Power Lawn & Garden Equipment grow 7.2% annually through 2005. Fueling gains Growth in US demand for power lawn and garden will be the development of advanced-generation IT equipment will be driven by favorable demograph- devices (e.g., web-enabled mobile phones and ics and product innovations and upgrades. Al- handheld personal organizers) as well as portable though gas-powered equipment will remain domi- and micro fuel cells. This study analyzes the $7.5 nant, electric powered products will grow faster, billion US portable power products industry to with cordless battery powered equipment growing 2005 and 2010 by technology, product (batteries, 9.5% annually. This study analyzes the $8.5 billion small engines, photovoltaic cells and fuel cells) and US market for power lawn and garden equipment application. It also evaluates market share and pro- to 2005 and 2010 by material, market, product, files key companies. and region. It also evaluates market share and pro- #1471...... 10/01...... $4,700 files key companies. #1386...... 3/01...... $3,700

World Heavy Construction Equipment Automotive Aftermarket in North Worldwide demand for heavy construction equip- America ment will grow 5.3% annually through 2005. The aftermarket for light vehicle components and Growth will be driven by ongoing economic recov- parts in North America will grow over 4% annu- ery and expansion within the developing nations of ally. Gains will be driven by the growing size and Asia/Pacific and Latin America. Demand in West- age of the light vehicle park, with the increasing ern Europe and Japan will also increase based on durability of newer models a limiting factor. Me- improved macroeconomics. This study analyzes the chanical products will remain the largest segment US$67 billion heavy construction equipment in- while electronics grow the fastest. This study ana- dustry to 2005 and 2010 by type, region and for 39 lyzes the $45 billion US, Canadian and Mexican countries. It also details evaluates shares and pro- automotive aftermarket to 2004 and 2009 by coun- files key producers. try and product. It also profiles key players and #1468...... 10/01...... $4,700 presents market shares. #1323...... 9/00...... $3,700

Power & Hand Tools #1478 Order form on last page

15 How to Order

Ordering Information For more information about our products, Fill out the coupon below and mail it to The Freedonia Group, or send your order by fax (440) 646-0484, or E-mail to please call the Freedonia Customer Service [email protected] Department at (440) 684-9600 or (800) 927-5900 or fax (440) 646-0484. Handling and Shipping is FREE There is NO charge for handling and shipping. In the US we ship via UPS. Outside the US, we provide free airmail service. If you would like express delivery, we provide this to you at cost. Save Fifteen Percent If you order three (3) different titles at the same time, you can receive a discount of 15 percent. If your order is accompanied by a check, you may take a 5 percent cash discount (discounts do not apply to corporate use licenses).

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