Not 'gangbusters,' but 1999 was decent
By Industrial Distribution Staff -- Industrial Distribution, 11/1/1999
It's been another solid year for hand tool sales in construction markets while industrial-MRO markets went flat.Manufacturing and distribution executives say there is little reason to expect the country's hot construction markets to cool off much heading into 2000. The outlook is more mixed for firms that sell a lot of tooling to contractors doing plant expansions and other major
industrial projects, which by some accounts dropped markedly this year.
One distributor, Texas Mill Supply Cos., expects a pickup through the winter because of a boost in plant maintenance contracts, particularly among the petrochemical and resin-producing industries located on the Gulf Coast. Houston operations manager Steve Malden says sales of tools such as hoists and power wrenches have been flat most of the year. But a jump in planned plant shutdowns, which he calls "turnarounds," means contractors will consume plenty of "throw away" tools in a rush to complete work on time.
"We see things slightly picking up, primarily because of the turnarounds," says Malden. "But plant expansions will stay flat. The trick is for us to be able to furnish more of the things [plants] need."
Greg Helbling, vice president of sales at Wright Tool Co., expects his company's sales to increase modestly in 1999, which he calls better than average.
"A lot of people were three percent to flat," says Helbling. Wright Tool, which makes sockets, ratchets and wrenches primarily for the construction market, has many customers who work on repairs and planned shutdowns at large plants. Helbling, too, sees no reason for that activity to change next year.
Hand Tools Institute president Joel Dowley, who is president of Dowley Manufacturing, says the hand tool market has been decent this year "but most people I've talked to [say] it's not total gangbusters." At press time, the HTI was preparing to survey its members on sales activity.
Another manufacturer, Klein Tools, Inc. expects revenue increases for non-powered hand tools of up to nine percent for 1999, while industrial/MRO sales dropped by more than one percent, says Alan Sipe, vice president of sales and marketing. Klein forecasts a slight downturn next year.
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