Power Tool Industry September 2022
Robert Bosch Tool Corporation
Bosch Power Tools launched a new brand advertising campaign, featuring the iconic voice of actor Nick Offerman, a long-time user and fan of Bosch tools. The “What Hard Workers Deserve” campaign focuses on the engineering of Bosch power tools in some extreme situations designed to meet the demands of construction and trades workers on the job. Offerman said, "I don't have any fancy advertising slogans to offer here -- all I know is that I have always turned to these tools when I want to perform hard work as efficiently and accurately as possible.” Through a series of content launched across streaming TV, radio, and social media, Offerman celebrates the tough work of trades workers and illustrates how Bosch engineers their tools to be ergonomic and efficient and to support career longevity. The campaign is the result of an agency review completed in Spring 2022 and created by agency Bailey Lauerman.
Stanley Black & Decker
DeWalt recalled nearly 1.4 million saws due to injury and laceration hazards. The recall involves DeWALT 12-inch sliding compound miter saws. The miter saw's rear safety guard can break or detach, posing an injury hazard due to projectiles that can strike the user and bystanders and a laceration hazard to the user who could come into direct contact with the saw blade, according to the Consumer Product Safety Commission. DeWalt issued the recall after nearly 600 reports of the safety guard breaking or detaching.
SB&D and Discovery Education announced the winner of the 2022 Trade Champions Challenge. A tenth grader named Samantha was the winner. The Champions Challenge asks high school students to create a 30-60 second video submission, directed at their peers, about why they aspire to be a trade professional and/or why they are passionate about the trade career in which they are currently engaged. Samantha will receive a cash prize and a Stanley Black & Decker Prize Pack. Her project, entitled “The Future of Construction,” addresses the fourth industrial revolution as related to the innovative technologies of the construction industry.
First Half Conference Call with Analysts:
TTI organic sales grew 10% to $7 billion for the first half of 2022. Excluding the currency impact on translation, sales grew by 12.1% in local currency. They noted that their full year revenue in 2018 was $7 billion. TTI saw outsized growth last year of more than 50% and said that sales growth for the two-year period was 67%. For the full year they are expecting a conservative mid-single digit growth level.
The Power Equipment division revenue, which accounts for 93.3% of the group's revenue, increased by 12.8% or 14.9% in local currency to $6.6 billion. Milwaukee, now accounting for 58% of the group's revenue, continued to be the main growth driver and grew 25.8% in local currency. The Consumer Power Tools business delivered strong results and the Outdoor business outperformed the market.
All regions delivered revenue growth. North America, accounting for 76.7% of the group's revenue, delivered a 10.5% increase with Power Equipment growing 13%.
R&D spending increased to 3.3% of sales. They remain committed to continuing to invest in innovative new products and cordless technology.
Raw material inventory grew 6 days to 20 days and finished goods inventory fell by 3 days compared to the first half of 2021. They are targeting additional reductions during the second half.
They believe they have the highest levels of shipping to major customers, including The Home Depot. Every quarter they do output interviews with every business unit, and the president level executives in these units have to cover their SKU progress plans and status, including how many SKUs they had at the start of the quarter, how many they plan to add that quarter, how many they plan to discontinue, and what's the new net total.
They have been able to stockpile critical components such as battery cells, semiconductors and some other scarce materials, and wish they had been able to add more strategic component inventory.
Milwaukee grew 26% in the first half in the US and slightly more in Canada. They do not consider themselves a US-centric business. They have grown Milwaukee 20% a year since 2010, when it was a $600 million business. They expect global sales of more than $8 billion this year. Milwaukee has gone from 19% of global sales to a projected 58% this year.
They will be targeting the safety equipment market with the BOLT helmet system with over 30 different bolt-on accessories that they will be manufacturing in the US.
They launched the RYOBI ONE+ line in 1996 and have now achieved a 42% household penetration in the US. Because the platform has not changed, introducing new products guarantees sales. It is also number one in Canada.
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