Sales of power and hand tools will increase 3.1% annually through 2011, reaching $14.3 billion according to a new report from Cleveland-based The Freedonia Group, Inc.
These sales will results from product innovations, especially the development of higher-voltage cordless electric tools, says Freedonia.
Consumer demand, especially from women, will push up demand in the DIY and hobby markets. Nonresidential building will also drive demand.
The increased demand won't push production of power tools and hand tools in the U.S. as producers will instead expand offshore production in lower cost nations such as China, says Freedonia.
Looking at specific products, cordless products such as saws, sanders, polishers and grinder will cause power tool demand to outpace hand tool demand. Cordless products will post the largest gains with improved battery technology such as lithium-ion chemistry.