Still on a roll
By Industrial Distribution Staff -- Industrial Distribution, 5/1/1999
So far, 1999 looks to be another great year for the power tool market. Several indicators point to continued momentum after seven strong years. First, construction activity is vibrant in most of the country. According to the Commerce Department, overall construction activity rose by 1.6 percent in January, the largest increase in seven months.Federal highway projects contributed heavily to that growth and will continue for several years, and a five-year, $89 billion bill to fund airport projects has support in Congress.
Secondly, through the beginning of spring there were few signs that interest rates would climb substantially, if at all, this year.
A strong fourth quarter in 1998 for power tool distributors set the stage for continued growth. Sales by Specialty Tools and Fasteners Distributors' Assn. members increased 12 percent from the previous year during the final quarter, and 9.5 percent for all of 1998. Members forecast a 7.5 percent increase for the first quarter of 1999, says STAFDA executive director Morrie Halvorsen.
"We think all conditions for the construction industry --at least the residential part of it -- remain strong," says Halvorsen. "Demand may be easing a bit ... but it may still be pretty good by recent historical standards."
Only the Rocky Mountain and Pacific Northwest states were slow at the end of 1998 for STAFDA members.
James White, president of the Power Tool Institute, is upbeat again this year and for 2000. Yet he expects margins will continue to be tough in a market where sales of most tool categories have increased five to seven percent in recent years - and should again this year.
"There's a lot of pressure in the U.S. market on margins," he says. "In one sense it makes you a stronger market ... the U.S. consumer buys power tools at a better price than anywhere in the world because the fat is wrung out of the process."
Overall, White expects construction to dip a little this year. "We don't see any storm clouds on the horizon, but that could change tomorrow," he says.
Meanwhile, finding construction workers continues to be a concern and limiting factor in business, more so than any worries about the economy, Halvorsen says.
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Adhesive Technologies, Inc. 462
Advanced Machine & Engineering Co. 463
AIMCO 464
Air Speed Tool Co. 465
Air Turbine Technology Inc. 466
Alden Corp. 467
American Saw & Mfg. Co. 468
AMP 469
APEX 470
Atlas Copco Tools, Inc 471
Aurand Mfg. & Equipment Co. 472
Automation Component Technology 473
Brush Research Manufacturing Co., Inc. 474
Carr Lane Mfg. Co. 475
Caterpillar Industrial Products, Inc. 476
CDP Diamond Products, Inc. 477
Central Tools Inc. 478
Chicago Pneumatic Tool Co. 479
CJT Koolcarb Inc. 480
Clauss Tools 481
Cleform Tool Co. 482
Cooper Industries, Inc. 483
Crescent Electric Supply 484
D-G Industries 485
Eclipse Systems 486
Engis Corp. 487
FIC Corp. 488
Hertz Equipment Rental Corp. 489
Heyco Products, Inc. 490
Hobart Cabinet Co. 491
ITW Ramset/Red Head 492
J & S Tool Co., Inc. 493
Jamerco, Inc. 494
Jergens, Inc. 495
JET Equipment & Tools 496
John M. Dean, Inc. 497
Kennametal Inc. 498
Klein Tools, Inc. 499
Lenox (American Saw & Mfg. Co.) 500
Lista International Corp. 501
Little Rock Tool Service 502
Manufacturers Sales 503
Maryland Metrics 504
Mausner Equipment Co., Inc. 505
Mayhew Tools 506
Melcut Tools, Inc. 507
Milwaukee Electric Tool Corp. 508
Minitool, Inc. 509
Monroe Engineering Products, Inc. 510
Moody Tools, Inc. 511
Mountz Inc. 512
Nachi America, Inc. 513
Nitto Kohki USA, Inc. 514
North American Tool Corp. 515
Norton Diamond Film 516
Parker Hannifin Corp. 517
Pinpoint Laser Systems, Inc. 518
Powers Fastening Inc. 519
QQC, Inc. 520
Reid Tool Supply Co. 521
Richlite Co. 522
Ridge Tool Co. 523
Robert Larson Co. 524
S B Power Tool Co. 525
Sandvik Coromant Co. 526
Shop-Aid, Inc. 527
Sioux Tools, Inc. 528
Somma Tool Company Inc. 529
Spiralock Corp. 530
TE-CO 531
Thriller, Inc. 532
Titan U.S.A. 533
Tivoly Inc. 534
Valtra, Inc. 535
Victaulic Co. of America 536
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