Power – something that no superhero would be very super without. Superman’s strength and Spiderman’s abilities to climb walls is what makes them great, and the same can be said for contractors and their power tools. The latest Global Power Tool Market report brings promising news for contractors, predicting growth at a continued annual growth rate (CAGR) of 4.74 percent over the next four years reaching a revenue of over USD 34 billion by 2020. Here, John Cove, Marketing Manager of power tool accessories and hand tool specialist Starrett, explores how the power tool industry is set to keep contractors super.
Nearly a decade on from the 2008 recession, the construction industry is once again powering ahead. The Global Power Tool Market report for 2016–2020 predicts sustained growth for the power tool sector between now and 2020 due, primarily, to increased investment in construction and aerospace engineering. As demand for commercial and industrial buildings increases, further employment opportunities are being generated for apprentices, installers and contractors as well as encouraging technology advancements.
Released at the beginning of August, the 2016–2020 Global Power Tool Market report shows how the rejuvenation of the construction industry across Europe, Asia and America is creating promising opportunities for the power tool industry. In particular, the rise in residential construction projects across the UK, partly fuelled by the government’s current house building scheme, has created strong demand for power tools.
Build it and they will come
This new flush of construction activity is about more than simply recovering from the economic crash. The industry is evolving, changing the way it operates to incorporate the latest materials and technologies into buildings and projects. Modern methods of construction (MMC) rely on applying new techniques to meet increasingly complex design demands — and power tools and their accessories need to keep up.
Power tool accessory manufacturers such as Starrett can’t take demand for granted, they need to match innovation in other sectors to take advantage of the projected market growth. That’s why we invest continuously in developing tools that can keep up with modern construction and engineering techniques. This includes exploring how materials like carbide, diamond and bimetal can be enhanced and developed to produce power tool accessories capable of performing in the modern landscape.
If you want something done well... pay a professional
The healing economy also means more disposable income, leading to homeowners downing tools and turning away from the DIY trend, seeking the professional touch instead. This means that plumbers, electricians and installers are looking to invest in power tools and accessories that can keep up with demand and provide return on investment
With this upswing in demand for tradespeople and construction, employment levels are on the rise, with over two million contractors employed throughout 2015 in the UK, a 0.5 percent increase on the previous year. The number of construction apprenticeships also rose by a staggering twelve percent in the UK in 2015, taking the total number of apprentices in the industry to nearly 18,000. Projections indicate that these numbers are going to grow alongside demand for construction. For example, in London alone a 20 percent increase in the number of construction workers is already required to meet existing demand for commercial and residential projects.
While a contractor may not be able to swing from buildings or throw cars, they can create super structures that push the boundaries of design with support from innovative power tools and accessories. The growing construction industry is creating the perfect storm to allow the UK power tool industry to reach new heights, taking employment and technology advancements with it.