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Cordless tool sales hold steady

Al Tuttle, Associate Editor -- Industrial Distribution, 2/1/2003

Residential building powered the construction market in 2002, continuing the trend of a year before, according to distributors. Commercial building numbers remained well below their heyday of three years ago. Power tool sales last year are best described as flat, distributors said. If tool sales rebound in 2003, powerful cordless tools will likely lead the way.

Cordless tools were among the best selling power tool products in his region last year but did not do as well as expected, said Bill Brennan, president of Brennan Tools and Fastening Systems in St. Louis, Mo. Manufacturers continue to offer more power and longer-lasting batteries in new products. One best seller in cordless was a 24-volt hammer drill, Brennan said.

"Cordless is a very strong part of our market," Brennan said, noting that his final numbers were not in at the time.

Cordless voltages continue to go up, and while the tools get more powerful, Brennan thinks that power is now sufficient for the need. The cordless market could be strengthened if manufacturers would standardize batteries and chargers because contractors get angry when those components are changed and they have to buy replacements, Brennan said.

The poor overall economy has slowed research and development of new tools and the powder-actuated tool market has slowed, since medium and light-duty fasteners are taking their place, he added.

Jeff Burns, vice president of Fall River, Mass.-based Burns Power Tools, agrees that cordless is a growing product line. Power tool sales were down somewhat, due not only to the economy but other sales channels and more competition, Burns said. His company is attempting to offer more value-added services like repairs and parts delivery, but tools are becoming more commoditized, he said.

"Cordless is one area that is growing, not at a great rate, but a lot of emphasis is on that type of tool," he said.

Hahn Systems, Inc., of Indianapolis, Ind., sold redesigned cordless tools from manufacturers like DeWalt, Porter-Cable Corp. and Bosch Power Tool Div., said sales manager Don Toon, marketing operations manager. The company focuses on residential construction. According to Toon, 14/15.6-volt tools are the sales leader and 12-volt tools are next best, followed by 18- and 24-volt tools. Cordless tool builders are designing stronger motor packages and metal gearboxes, he said.

"Cordless continues to supplant corded tools in a multitude of applications and have proven a durable, worthy replacement," Toon said, noting that all major suppliers have released higher capacity batteries and improved chargers.

The market for cordless will grow quicker than the market for power tools in general because of the large number of buying options and the fact that manufacturers are intensely driving for market share in cordless, Toon says.

Hahn Systems has a tool repair policy in which customers reaching purchasing goals or buying specific tools get free repairs.

According to Kevin Higginbotham, president of the Carollton, Texas-based Evergreen Marketing Group, a consortium of construction fastener and tool distributors, construction materials and tool sales varied widely, region to region, while commercial building suffered the most in 2002.

Higginbotham confirmed that, in his membership, 24-volt cordless tools caused the most excitement in power tool sales. Most members around the country "have a sense of optimism about tool sales for the second half of 2003, but not much before," he said.

"The cordless market has been hot, and 18- and 24-volt [tools] lead the way. Interchangeable batteries and smaller tool dimensions that allow workers to get in closer to the work will continue to sell well this year."

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