MARKET REPORT MARKET R R


MARKET REPORT


UK TOOL DISTRIBUTION MARKET FORECAST TO BE WOR TH £1.2BN IN 2018


The overall UK tool distribution market increased in 2016 and is expected to reach a value of £1.2 billion b y 2018, according to AMA Research’ Tos Tool Distribution Market Report – UK 2017-2021


ool Distribution M H


igher levels of construction, house building and RMI work – along with pr oduct 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 gr owth 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 constr uction, RMI and gardening is highly complex and fragmented due to the number and ranges of products offer ed to end- use sectors and contractors. To


T ool distribution comprises a ool ool di di


mix of large national players competing with many r egional and local companies in both trade and consumer channels. Home improvement multiples are important players in the distribution market, as ar e the industrial pr oduct distributors.pr Recently, hy,


owever, r, buyi ng


behaviour has been influenced by digital technology and operating a t ransactional website h as becom e increasingly important, with the internet emer ging as a key channel in its own right. Home impr ovement multiples have r esponded to changing customer needs faster than some others and are aiming for an omni-channel appr oach to selling including bricks-and-mortar mobile and internet, catalogues, click & collect etc.


rtar r,,


Market performance is influenced by tool r eplacement cycles and activity levels in new build and RMI as well as a range of industry specific influences such as pr oduct development and legislation. Also assisting gr owth in r ecent 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 tend to replace tools more frequently


y..


Hand tools is a matur e, steady sector with little significant step change in product development. have


In contrast, power tools


significantly benefited from new products and product innovations, such as cordless technology,y, 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 trend has seen distributors’ stock levels increase in recent years.


18 12 DIY WEEK 25 AUGUST 2017


AMA Research market r esear cher Hayley Thornley said: “Prospects for the overall market ar e generally positive, with moderate growth expected in the domestic sector and also acr oss some non-domestic constr uction sectors.


“Steady demand in the gar den tool sector is expected to underpin the market. W e estimate that the UK tool distribution market wil l continue to gr ow by ar ound 3% per annum to 2021.”


We e estima


While for ecasts for the constr uction and RMI sectors to 2021 are for lower levels of activity for


infrastructure ,


ty,y, prospects 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. Pr oduct development is also expected to continue in these areas.


MARKET ANALYS


LY To YSIS


The ool Distribution M Report – UK 2017-2021 Analysis’ r eport is published by AMA Resear ch, a leading provider of market resear ch and consultancy services with over 25 years’ experience within the construction and home impr ovement markets.


‘Tool Distribution Market www.diyweek.net


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