The overall
UK tool distribution market increased in 2016 and is expected to reach a value
of £1.2bn by 2018. Higher levels
of construction, house building and RMI work - along with product innovation - supported
value growth of up to 7% per year until 2014. The positive trends have continued
throughout 2015 and the first half of 2016, with growth supported by a good
economic performance and higher levels of construction leading to market growth
of 3-4% per annum, in value terms.
Overall, the distribution of tools used in construction,
RMI and gardening is highly complex and fragmented due to the number and ranges
of products offered to a range of end-use sectors and contractors. Tool
distribution comprises a mix of large national players competing with many
regional and local companies, in both trade and consumer channels. Home
improvement multiples are important players in the distribution market, as are
the industrial product distributors.
Recently, however, buying behaviour has been influenced
by digital technology and operating a transactional website has become
increasingly important, with the internet emerging as a key channel in its own
right. Home improvement multiples have responded to changing customer needs
faster than some others, and are aiming for an omni-channel approach to selling
including brick-and-mortar, mobile and internet, catalogues, click &
collect etc.
Market performance is influenced by tool replacement
cycles and activity levels in new build and RMI as well as a range of industry
specific influences such as product development and legislation. Also assisting
growth in recent years has been the trend away from do-it-yourself (DIY) to
get-someone-in (GSI), as professional tradesmen tend to purchase higher value
and quality tools, and also tend to replace tools more frequently.
Hand tools is a mature, steady sector with little
significant step change in product development. In contrast, power tools have
significantly benefited from new products and product innovations, such as cordless
technology, lithium-ion batteries and brushless motors, all driving sales. Demand
for power tools has meant that manufacturers have focused on producing a wider
range of tools suitable for all budgets and capabilities. This wider choice of
products has seen distributors’ stock levels increase in recent years.
Hayley Thornley, market research manager at AMA Research
said: “Prospects for the overall market
are generally positive, with moderate growth expected in the domestic sector
and also across some non-domestic construction sectors. Steady demand in the
garden tool sector is also expected to underpin the market. We estimate that
the UK tool distribution market will continue to grow by around 3% per annum to
2021.”
While forecasts for the construction and RMI sectors to
2021 are for lower levels of activity, prospects for infrastructure, education,
entertainment and housing are reasonably positive and should provide
opportunities in both the professional and DIY tool sectors. Longer term growth
potential in the timber frame housing market should benefit the cutting,
woodworking and carpentry tool sectors. Product development is also expected to
continue.
The ‘Tool
Distribution Market Report – UK 2017-2021 Analysis’ report is published by
AMA Research, a leading provider of market research and consultancy services with
over 25 years’ experience within the construction and home improvement markets.
The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242
235724.
No comments:
Post a Comment