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Power Tool Manufacturing in the US Industry Data and Analysis
Power tool manufacturers have faced a rollercoaster of economic conditions in recent years. The initial boost from low interest rates in 2020 and 2021 spurred residential construction and a surge in DIY projects. This environment offered a lifeline when other construction markets lagged. However, the tide turned in 2022 and 2023 when interest rate hikes chilled the market, hitting consumer confidence and slowing sales. Despite signs of recovery as of late 2024, persistent challenges like high input costs and increasing tariffs have continued to weigh heavily, creating an uncertain landscape as manufacturers navigate volatile market conditions. Despite volatility in residential construction, infrastructure and industrial construction activity have boosted power tool sales, offering some reprieve. Industry revenue has been decreasing at a CAGR of 0.4% over the past five years to total an estimated $4.2 billion in 2025, including an estimated increase of 1.8% in 2025.
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What's included in this industry analysis
IBISWorld's research coverage on the Power Tool Manufacturing industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released July 2025.
About this industry
What's this industry report about?
The Power Tool Manufacturing industry in the United States operates under the NAICS industry code OD4897. This industry manufactures power-driven (e.g. battery, corded, pneumatic) hand tools including drills, circular saws, chain saws and nail guns. Operators that manufacture such tools may also sell spare or replacement parts. This industry excludes operators that exclusively sell parts, power-driven heavy construction hand tools (e.g. tampers, jackhammers), powered pumps and vacuums, outdoor powered equipment (e.g. lawnmowers, power washers) and machine tools for woodcutting. Related terms covered in the Power Tool Manufacturing industry in the United States include pneumatic tool, computer-aided design, do-it-yourself, big-box store and hydraulic tool.
What's included in this industry?
Products and services covered in Power Tool Manufacturing industry in the United States include Pneumatic, hydraulic and powder-actuated tools, Electric tools and Battery-powered tools .
What companies are included in this industry?
Companies covered in the Power Tool Manufacturing industry in the United States include Stanley Black & Decker, Inc., Snap-On Inc. and Makita Corp.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Power Tool Manufacturing industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Power Tool Manufacturing industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Power Tool Manufacturing industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Power Tool Manufacturing industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Power Tool Manufacturing industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Power Tool Manufacturing industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Power Tool Manufacturing industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Power Tool Manufacturing industry in the United States.
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Frequently Asked Questions
What is the market size of the Power Tool Manufacturing industry in the United States in 2026?
The market size of the Power Tool Manufacturing industry in the United States is $4.2bn in 2026.
How many businesses are there in the Power Tool Manufacturing industry in the United States in 2025?
There are 109 businesses in the Power Tool Manufacturing industry in the United States, which has declined at a CAGR of 2.2 % between 2020 and 2025.
How may import tariffs affect the Power Tool Manufacturing industry in the United States?
The Power Tool Manufacturing industry in the United States is likely to be significantly impacted by import tariffs with imports accounting for a high share of industry revenue.
How may export tariffs affect the Power Tool Manufacturing industry in the United States?
The Power Tool Manufacturing industry in the United States is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.
Has the Power Tool Manufacturing industry in the United States grown or declined over the past 5 years?
The market size of the Power Tool Manufacturing industry in the United States has been declining at a CAGR of 0.4 % between 2020 and 2025.
What is the forecast growth of the Power Tool Manufacturing industry in the United States over the next 5 years?
Over the next five years, the Power Tool Manufacturing industry in the United States is expected to grow.
What are the biggest companies in the Power Tool Manufacturing industry in the United States?
The biggest companies operating in the Power Tool Manufacturing industry in the United States are Stanley Black & Decker, Inc., Snap-On Inc. and Makita Corp
What does the Power Tool Manufacturing industry in the United States include?
Manufacturing pneumatic-powered tools and Manufacturing hydraulic-powered tools are part of the Power Tool Manufacturing industry in the United States.
Which companies have the highest market share in the Power Tool Manufacturing industry in the United States?
The company holding the most market share in the Power Tool Manufacturing industry in the United States is Stanley Black & Decker, Inc..
How competitive is the Power Tool Manufacturing industry in the United States?
The level of competition is moderate and steady in the Power Tool Manufacturing industry in the United States.
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