The demand for power and hand tools in the United States is forecast to increase nearly 5 percent annually (including price increases) to $15.4 billion in 2007, according to a new study, Power & Hand Tools, from The Freedonia Group Inc., a Cleveland-based industrial market research firm.

Some of the studies highlights:

• The demand increase will result from an improving outlook for residential repair expenditures, as well as from continued growth in new construction. Gains will also result from rising manufacturing output, which will create opportunities for pneumatic tools in particular.

• Professional users will continue to comprise 69 percent of overall tool demand in 2007. Gains in this professional-user market will benefit from rising manufacturing output, as well as from the rising number and average age of vehicles in the U.S. motor vehicle pool.

• Cordless products will continue to post the best gains. Both professional and consumer users will continue to replace existing corded tools with cordless models due to their convenience and ease of use. Gains will also result from the introduction of new products, especially in the power tool segment.

• Power-tool demand is forecast to outpace hand-tool demand due to the continuing popularity of cordless electric products such as saws, sanders, polishers and grinders.

Hand-tool demand is limited by the inherent durability of these products. Unlike power tools, common household tools such as hammers frequently outlive their owners, dampening replacement demand. In addition, product innovation is less common than in power tools, limiting opportunities for value gains.

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