Impact of Other Industries on Power Tools Industry Essay

Impact of Other Industries on Power Tools Industry - Essay Example Hand Tools are tools that are powered manually (U.S. Department of Labor, 2002). These tools are powered solely by the person using it and do not use motors (Wikipedia, 2007). These include hammers, screw drivers, hand drills, saws and knives etc., that require manual power to operate. The Hand Tools industry can be a threat for power tools. Though outdated and used less frequently, yet they can be the tools of choice by some consumers due to their lesser costs and supposedly longer lives. Hand Tools offer some benefits as compared to power tools, these don't rust easily, there is no expenditure required for purchasing batteries etc., electricity is not required to operate these and there are no essential scheduled maintenance requirements. Hence, hand tools can provide a cost competitive alternative for some people, mainly the Do-It-Yourself (DIY) type of customers. The forecasting for the hand tools industry depends upon the value the user derives from the use of these tools. The estimations can be obtained using customer surveys that show preferences of customers who are using hand tools. The surveys can provide valuable information about the features that power tools manufacturers should try to incorporate in their design if possible. In addition, some estimates can be developed by analyzing the revenues and sales data of various companies providing hand tools and then comparing this data with the power tools sales information to identify the extent of competition hand tools providers are posing for power tools industry. Bench Mounted Tools Bench Mounted tools are those that are not portable; these are fixed (mounted) at a place. Usually, these are required in small industries where tools like Thickness Planer, Saw Table etc. (Mitre 10, 2007) are used by a group of workers at the same time. These are mainly used where a number of people are involved in doing a single task like an assembly line where all workers follow similar procedures. In these kinds of situations, using portable tools is cost ineffective; instead the bench-mounted tools are used for efficiency and effectiveness gains. These are also used in metal working environments. The Bench Mounted tools industry provides competitions to the portable electric power tools industry because a large number of industries have now installed fixed tools instead of providing portable tools to all its workers. The forecasts can be derived by analyzing the historical industrial data for new technology deployment and from sales figure of these tools. Air Driven (Pneumatic) Tools Pneumatic tools are powered by compressed air and include chippers, drills, hammers and sanders (U.S. Department of Labor, 2002). These tools are usually used in the mechanical and automotive industries which require high power tools. They may pose a competition to the portable electric tools market where the electric tools face the threat of substitution. The relevant forecasts and statistics can be obtained by analyzing the market size and segmentation. Liquid Fuel and Hydraulic Power Tools These tools are operated by generating power from liquid fuel like gasoline or water. These are used in environments where there is a need of extremely high power to operate the tool. The industry data can be obtained for estimating the market size and usage level and then an estimate can be made regarding