Power tools are a kind of tools that can improve efficiency. There are many categories of power tools, and all kinds of tools can improve work efficiency. According to the product category, it is divided into electric drill, electric grinder, electric saw, sander and impact wrench; According to the purpose, it can be divided into industrial level, professional level and general level; According to the power source, it can be divided into pneumatic, electric, gas and fuel driven, and electric tools can be further divided into wired and wireless.
Power tools are developing towards safety, ease of use and portability. In 1895, the first modern power tool was born, which was very bulky. In 1910, black & Decker, the world giant of electric tools, was born and improved the original version of electric tools to make them lighter, easy to use and powerful. In 1957, Bosch invented an electric tool with a plastic shell, which improved the safety performance of the product. In 1984, the battery began to enter the electric tool industry, which made the electric tools get rid of the power constraints and improve the portability. As far as the Chinese market is concerned, under the background of the development of power tools in the world, from the initial foreign monopoly to the balance of supply and demand, and then to the current homogenization of products, technology and production capacity have been continuously improved and developed in this process.
The power tool market is growing, and the leader benefits from the increase of share. The power tool market is large in scale and continues to grow steadily. According to the research data of China energy storage network, it is estimated that the global power tool market share will reach 41.7 billion US dollars in 2024. In China, the sales market of electric tools is also broad, and new electric tools are replacing old products. From the perspective of competition pattern, the market share is concentrated in a few leading hands, such as swk, TTI, etc., and the leading share continues to increase. Although swk’s overall revenue is higher than TTI’s, TTI’s market share ranks first in the world in terms of cordless electric tools.
The upstream of the industrial chain is mainly battery, electric control, motor and drill clamp. The market concentration of electric tool motor and electric control is low, but there is an industry leader Shandong Weida Machinery Co.Ltd(002026) .
China provides most of the world’s power tool production capacity, and Southeast Asia also undertakes some production capacity due to tariffs. China is the most important power tool producer, parts supplier and global power tool production base in the world. The market demand is mainly export, supplemented by domestic sales. The export rate of complete power tools and parts is more than 80%, and the export volume ranks first in the world. Due to Sino US trade frictions, the United States imposed an additional 25% tariff on Chinese products in addition to the normal tariff, resulting in higher tariffs on power tools than the normal level, lower tariffs in Southeast Asia, and some production capacity transferred to Southeast Asia.
The downstream North American real estate is in the upward cycle, and the consumption is mainly in Europe and America, mainly in housing related scenes, relying on multi brand and multi-channel sales. According to the data of industry leader swk, 68% of the downstream scenarios are in the field related to housing, 17% in the field of non residential / commercial construction and 5% in the field of automobile. From the downstream indicators, the data of existing house sales and car ownership in the construction field are in the ten-year upward cycle. In terms of sales channels, leading companies will acquire multiple brands for channel construction and product sales. The main offline supermarkets are Walmart, Lowes, Homedepot, CTC and kingfisher, and the online channels are mainly Amazon.
Risk tip: the prosperity of the industry is less than expected, the Sino US trade friction intensifies, the risk of rising raw material costs, the risk of exchange rate fluctuations, and the risk of shipping capacity and cost fluctuations.
