Powering on

The Middle East is moving towards stricter health and safety features

The power tool industry in the Middle East is moving towards stricter health and safety features to protect and increase productivity of the end user. Features Editor Shikha Mishra reports

Tools and tool-making have been around since the dawn of civilization but power tools came into existence less than a century ago. Power tools are small- and medium-sized machinery that drill, cut and slice materials such as concrete, wood, steel or aluminum pipes in the building and construction industry.

But these small tools spell big business. The world market for power tools is estimated at around US $20 billion (AED 734.6 billion), with the total value of the UAE market pegged at around US $ 89.8 million in 2008.

As far as the Middle East regional market is concerned, experts say it is difficult to estimate its worth.

Suresh Srinivasan, marketing manager, Middle East & Africa, industrial product division, DeWALT, feels that the power tool market in the MEA region is fragmented and in absence of any data it’s difficult to put a value to market size.

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Market Growth

As an associated industry, the fortunes of the power tool companies are dependent on how the construction sector is performing.

“With the construction sector contracting, it will be an acid test for power tool companies over the next 12 to 16 months. Power tool companies that have invested in product innovation to enhance productivity at job sites will be successful.

"End-users will be looking to brands that provide a lower life cycle cost of product and most importantly an efficient after-sales service,” says Srinivasan.

In the last two years, the power tool market grew very fast. Customers wanted tools and services immediately and the market registered a consistent growth of 10-15% year on year.

With the worldwide slowdown, the power tool industry is expected to experience deceleration as well with moderate growth as compared to the quicker growth earlier.

“We are expecting the first quarter of 2009 to be slow; it certainly won’t be the same as last year. Healthy contractors who didn’t cross finance within projects will be fine, while the others might not be.
 
"A major outcome of this situation will be the cash flow. We are seeing some definite delays in terms of payments. But it is matter of 3-6 months, and we expect the market to stabilise,” says Moin Audi, product manager, drilling and demolishing, Hilti.

The slowdown will serve as a time when companies will be able to assess the market and focus on the necessities, such as deliverables, products and services.

“Our company will be able to support the construction sector in these trying times and will emerge a much stronger brand at the end of 2009. With the investments and plans that we have in place for the next 2-3 years, we will consolidate our leadership position in the power tool industry and continue to take on additional market share.

"In this uncertain environment, distributors especially would like to invest in a brand that not only provides them with return on their investment but also provide long term sustainability,” says Srinivasan.

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