China Power Tools Industry Development Trend Analysis

In recent years, power tools industry has been developing at a fast pace. To narrow the gap between China's power tools products and foreign products, technology is of vital importance. Power tools industry belongs to industry with high technical content. Companies are suggested to bring in relevant technologies to enhance their technical strength.

Power tools industry belongs to advanced equipment manufacturing industry. They are widely used in aerospace, high-speed rail construction projects, shipbuilding, automobile, road construction, woodworking, metalworking, etc.

Based upon different technical requirements and application fields of products, the global power sector can be divided into three levels. Industrial power tool products are mainly used for machining precision and workplaces that have higher requirement for environmental protection. For example, the aerospace field has higher technological requirement and more profits. DIY family power tools are used for home decoration that has low technical content and low profits. For instance, China's biggest power tools manufacturers sell their products by price competition.

Professional power tools are superior to DIY products in aspects of technology content, application fields, products' added value, and gross profit level. The advantages of professional power tools are high rotating velocity, long service life, high technological content, high profits, and high brand value.

Generally speaking, DIY family products account for a most part in China's domestic power tools industry. The industrial concentration is low and there are little leading companies. Seen from development trend, market share will be relocated, domestic brands will continue to replace foreign brands. Adjusting product structure and improving comprehensive service quality are the keys to success.