Power Tool Industry February 2022
Robert Bosch Tool Corporation
Technology makes the world a better place, according to a Bosch Tech Compass survey of the general public in the US, China, Germany, India and the United Kingdom. US respondents said that safety, better health and the ability to make life more comfortable are the top benefits of technology. Overall more than three-quarters of the people surveyed in the US believe technology progress should be more focused on the problems of society compared to individual needs, ranking the US last in this area; other countries gave this a rating higher than 80%. The vast majority of respondents believed that technology will play a role in combatting climate change.
Bosch reported from the Consumer Electronics Show (CES) that the company wants their entire product line to come with artificial intelligence by 2025. Sales of networkable power tools, home appliances and heaters alone have increased 50% within a year, rising from four million units in 2020 to more than six million units in 2021. Bosch had originally planned a live press conference at CES but switched to a virtual conference because of the rapid spread and risk posed by Omicron.
Stanley Black & Decker
SB&D FY21 revenue grew 20% to $15.6 billion, below expectations. Organic revenue grew a record 17%. Fourth quarter revenue grew 2% to $4.1 billion as price (+5%) and acquisitions (+6%) were partially offset by lower volume (-8%) and currency (-1%). Volume was impacted by a series of logistical and other supply chain challenges.
Q4 Tools & Storage net sales increased 3% as the acquisitions of MTD and Excel (+7%) and price (+5%) were partially offset by lower volume (-8%) and currency (-1%).
CFO Don Allen said that they were not satisfied with the fourth quarter volume and cash flow, which was driven by the constrained and congested supply chain. They have implemented price increases and are taking steps to mitigate inflationary impacts and improve efficiencies. They are also investing in expanded capacity to support continued growth.
SB&D announced a round of layoffs, stating that a percentage of employees from the company were being let go due to impacts from inflation and supply chain issues. SB&D shifted one-third of their office employees into a hybrid work model in August 2021. Those changes affected about 10,000 positions worldwide. About one-third of employees work full-time at one of 76 facilities worldwide and another one-third are completely virtual.
DeWalt recalled about 8,500 corded chain saws citing injury risks. The recall involves DeWalt DWCS600, Type 1 18-inch 15-amp corded chain saws manufactured in Mexico and sold at hardware and tool supply stores nationwide from June 2021 through November 2021 for between $130 and $150. The chain saw can remain running even when switched off or turn on when plugged in. SB&D has not received any reports of injuries but urged consumers to stop using the recalled saws and contact DeWalt for a free replacement saw.
DeWalt is partnering with Shoes for Crews, the global leader in slip-resistant footwear, to represent the DeWalt brand in Canada for industrial footwear and apparel products.
DeWalt is the most trusted power tool and hand tool brand in the recently released America’s Most Trusted Study. Rankings for the study were based on interviews with more than 10,000 customers for hand tools and 5,000 customers for power tools. Bosch, Milwaukee and Ryobi also ranked high among the most trusted brands.
A study from Citi stated that investors’ fears about a slowdown in sales in 2022 were unfounded. Citi was confident that TTI would sustain momentum this year due to solid retail channel restocking demand from clients and lower-than-expected inventories across some product categories. Another boost in demand is expected to come from the $1.2 trillion infrastructure bill.
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