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A report from Global Sources indicates that nearly 90 per cent of mainland China’s power hand tool manufacturers are preparing for an increase in export sales
In its Market Intelligence Report - Power Hand Tools: Supplier Capability in China - Global Sources gives a ground-level view of supplier capabilities, product trends, and the challenges facing China’s power hand tools industry. The report profiles 102 manufacturers and provides an analysis of industry trends and key issues such as pricing, manufacturing processes and production capacity among mainland China’s power hand tool makers.
Of the manufacturers surveyed, 89 per cent expected export sales to rise in 2005, with approximately 60 per cent anticipating growth in excess of 20 per cent. Fuelling this new-found confidence is the production of mid-range and high-end products, which has enabled toolmakers to expand market coverage and achieve better profit margins.
Michael Kleist, editor-in-chief of Asian Sources Hardwares, whose team researched and wrote the report, said, “In response to the anticipated export sales growth, power hand tool manufacturers in the key provinces of Fujian, Jiangsu, Shangdong and Zhejiang are boosting production capacity. Eighty-two per cent of the toolmakers surveyed indicated plans to increase their production capacity in the next 12 months. Of these companies, 45 per cent are planning increases of 20 to 50 per cent, while 18 per cent will raise capacity by more than 50 per cent.”
Further findings in the 153-page report indicate drills and fastening tools as the product category with the highest growth potential. Already, drills and fastening tools – including basic rotary drills, impact drills/drivers and combination/multifunction drills – are the most common products manufactured by toolmakers in China. From March 2003 to February 2004, this category accounted for nearly half of China’s total power tool exports of US$1.9 bn.
In this report the tools are grouped into seven major types: drills and fastening tools, sanders, woodworking tools, saws, metalworking tools, hammers and pneumatic tools. Tools for both the professional and the DIY market are covered. DIY tools make up the bulk of the power hand tools output in China because these are easier to manufacture, requiring a lower level of production technology than professional tools. DIY tools can be used only for short periods. Professional tools, which are designed to withstand heavier and more constant workloads, are less common in China, says the report, mainly because branded marketing is vital in competing in this segment, an ability that Chinese suppliers have yet to develop.
The Power Hand Tools report is one of the latest titles in the Market Intelligence series from Global Sources. Also available is a survey of 87 bathroom and kitchen faucet manufacturers from China, which indicates that the European Union is the region with the best export growth potential for this product line. The survey is part of a new report in the Market Intelligence series entitled Bathroom & Kitchen Faucets: Supplier Capability in China, which also profiles 87 Chinese suppliers and provides an overview of the faucets manufacturing and export industry in China.
Sixty-three per cent of survey respondents voted for the EU as the best growth potential market in the coming months, particularly with the inclusion of ten new members last May. The Middle East is the next top pick for 36 per cent of respondents and the United States, mainland China’s number one importer of faucets, is third at 33 per cent. The EU absorbed more than US $1 bn worth of China-made faucets in the 16-month period beginning January 2003, a close second to North America, which accounted for almost US $1.2 bn.
China’s power hand tool exports
Asia
8 %
Australia/Pacific
4 %
Eastern Europe
3 %
Western Europe
44 %
North America
35 %
Other
6 %
Source: Global Sources
China’s export of drills and fastening tools
Asia
11 %
Australia/Pacific
3 %
EU
46 %
Rest of Europe
4 %
North America
30 %
Other
6 %
Source: Global Sources
China’s export of saws
Asia
6 %
Australia/Pacific
5 %
EU
43 %
Rest of Europe
1 %
North America
42 %
Other
6 %
Source: Global Sources
China’s export of hammers
Asia
25 %
EU
26 %
Middle East
7 %
Africa
4 %
North America
29 %
Other
9 %
Source: Global Sources
About Global Sources
Global Sources produces its reports from on-site factory visits, interviews and questionnaires. The reports are intended to assist buyers in making informed purchasing decisions and are part of Global Sources’ sourcing and product information services, which include Asian Sources trade magazines, Global Sources Online and China Sourcing Fairs. The business-to-business media company facilitates global trade, with a particular focus on the China market, by providing information to international buyers and integrated marketing services to suppliers.
The company serves a growing community of more than 413 000 active buyers in over 230 countries and territories. These buyers generate more than 4 mio inquiries annually for over 130 000 suppliers through the online service (www.globalsources.com). The company’s solutions are based on 33 years as a trade magazine publisher, 13 years as a trade management software developer, 12 years as manager of trade shows in Asia, and eight years as an online marketplace operator.
Of the manufacturers surveyed, 89 per cent expected export sales to rise in 2005, with approximately 60 per cent anticipating growth in excess of 20 per cent. Fuelling this new-found confidence is the production of mid-range and high-end products, which has enabled toolmakers to expand market coverage and achieve better profit margins.
Michael Kleist, editor-in-chief of Asian Sources Hardwares, whose team researched and wrote the report, said, “In response to the anticipated export sales growth, power hand tool manufacturers in the key provinces of Fujian, Jiangsu, Shangdong and Zhejiang are boosting production capacity. Eighty-two per cent of the toolmakers surveyed indicated plans to increase their production capacity in the next 12 months. Of these companies, 45 per cent are planning increases of 20 to 50 per cent, while 18 per cent will raise capacity by more than 50 per cent.”
Further findings in the 153-page report indicate drills and fastening tools as the product category with the highest growth potential. Already, drills and fastening tools – including basic rotary drills, impact drills/drivers and combination/multifunction drills – are the most common products manufactured by toolmakers in China. From March 2003 to February 2004, this category accounted for nearly half of China’s total power tool exports of US$1.9 bn.
In this report the tools are grouped into seven major types: drills and fastening tools, sanders, woodworking tools, saws, metalworking tools, hammers and pneumatic tools. Tools for both the professional and the DIY market are covered. DIY tools make up the bulk of the power hand tools output in China because these are easier to manufacture, requiring a lower level of production technology than professional tools. DIY tools can be used only for short periods. Professional tools, which are designed to withstand heavier and more constant workloads, are less common in China, says the report, mainly because branded marketing is vital in competing in this segment, an ability that Chinese suppliers have yet to develop.
The Power Hand Tools report is one of the latest titles in the Market Intelligence series from Global Sources. Also available is a survey of 87 bathroom and kitchen faucet manufacturers from China, which indicates that the European Union is the region with the best export growth potential for this product line. The survey is part of a new report in the Market Intelligence series entitled Bathroom & Kitchen Faucets: Supplier Capability in China, which also profiles 87 Chinese suppliers and provides an overview of the faucets manufacturing and export industry in China.
Sixty-three per cent of survey respondents voted for the EU as the best growth potential market in the coming months, particularly with the inclusion of ten new members last May. The Middle East is the next top pick for 36 per cent of respondents and the United States, mainland China’s number one importer of faucets, is third at 33 per cent. The EU absorbed more than US $1 bn worth of China-made faucets in the 16-month period beginning January 2003, a close second to North America, which accounted for almost US $1.2 bn.
China’s power hand tool exports
Asia
8 %
Australia/Pacific
4 %
Eastern Europe
3 %
Western Europe
44 %
North America
35 %
Other
6 %
Source: Global Sources
China’s export of drills and fastening tools
Asia
11 %
Australia/Pacific
3 %
EU
46 %
Rest of Europe
4 %
North America
30 %
Other
6 %
Source: Global Sources
China’s export of saws
Asia
6 %
Australia/Pacific
5 %
EU
43 %
Rest of Europe
1 %
North America
42 %
Other
6 %
Source: Global Sources
China’s export of hammers
Asia
25 %
EU
26 %
Middle East
7 %
Africa
4 %
North America
29 %
Other
9 %
Source: Global Sources
About Global Sources
Global Sources produces its reports from on-site factory visits, interviews and questionnaires. The reports are intended to assist buyers in making informed purchasing decisions and are part of Global Sources’ sourcing and product information services, which include Asian Sources trade magazines, Global Sources Online and China Sourcing Fairs. The business-to-business media company facilitates global trade, with a particular focus on the China market, by providing information to international buyers and integrated marketing services to suppliers.
The company serves a growing community of more than 413 000 active buyers in over 230 countries and territories. These buyers generate more than 4 mio inquiries annually for over 130 000 suppliers through the online service (www.globalsources.com). The company’s solutions are based on 33 years as a trade magazine publisher, 13 years as a trade management software developer, 12 years as manager of trade shows in Asia, and eight years as an online marketplace operator.
