Power Tools & Other General Purpose Machinery Manufacturing in the US
The Power Tools and Other General Purpose Machinery Manufacturing industry produces a variety of products, including power-driven hand tools, welding equipment, packaging machinery, industrial-process furnaces, fluid-power cylinders and actuators. The industry fluctuates in-line with overall manufac...
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| Format: | Market Research |
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| Language: | eng |
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| Summary: | The Power Tools and Other General Purpose Machinery Manufacturing industry produces a variety of products, including power-driven hand tools, welding equipment, packaging machinery, industrial-process furnaces, fluid-power cylinders and actuators. The industry fluctuates in-line with overall manufacturing and construction activity as downstream demand is concentrated primarily in these markets. Over the past five years, the industry has been boosted by rising construction activity and industrial production. However, the COVID-19 pandemic disrupted both commercial construction and manufacturing activity, but the industry was buoyed by gains in residential housing markets. Still, the industry has shrunk at a CAGR of 2.0% to $54.8 billion through the end of 2024, including an expected 0.1% drop in 2023 alone.
Early on in the period, rising per capita disposable income permitted consumers to spend more on home improvements and remodeling projects, boosting industry demand. Additionally, strong overall domestic industrial performance over the past five years has resulted in boosts for manufacturers as companies felt comfortable pursuing new investment projects in the manufacturing and construction sectors. While the pandemic caused industrial and commercial construction activity to falter, substantial stimulus packages caused per capita disposable income to increase in 2020. This increase in incomes also caused residential housing markets to rise notably, increasing demand for power tools. Still, international trade in the industry suffered steep declines, primarily for manufacturers that export their goods. As a result of these trends, profit, measured as earnings before interest and taxes, is expected to account for 4.9% of revenue in 2024, a decrease from 7.1% in 2019.
Over the next five years, industry revenue is projected to continue its growth following the reopening of the economy. Renewed manufacturing and construction activities will likely drive demand, while international trade also returns to growth. Also, the US dollar is forecast to depreciate over the next five years, and any uncertainty in key export destinations will likely recede. Revenue is expected to increase at a CAGR of 1.7% to $59.6 billion through the end of 2029. |
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