< Spending by sector.
According to the U.S. department of transport, equipment accounts for
35.4% of costs on highway construction contracts over $1 million.
http://wwwcf.fhwa.dot.gov/ohim/hs01/ptcht.htm
The highway and bridges sector accounts for approximately 20 percent
of equipment sales and rentals. They are responsible for two-thirds to
three-quarters of purchases of all heavy construction equipment.
Companies spend on average $182,000 a year on buying equipment and
$132,000 on renting equipment.
Non residential building contractors spend on average $26, 800 on
equipment.
Residential building contractors spend on average $7300 on equipment.
The spending figures do not include consumables.
http://216.239.51.100/search?q=cache:gVq7Kv-tfdgJ:www.artba.org/pdf/equipsales_rentalstudy_01_10_01.pdf+%22contractors+spend%22+%22tools%22+&hl=en&start=5&ie=UTF-8
The following information comes from the 2002 Buyer’s Intention Survey
by carried out by Associated Construction Publications.
An average construction company with contracts worth between $1
million and $5 million will typically have equipment with a total
replacement value of under $1 million. Around 45 percent of companies
operate equipment with a replacement value of under $500,000. There is
a high rate of ownership of equipment.
The percentage of contractors who own, lease and rent their equipment.
Own – 81.5 %
Rent – 11.1 %
Lease – 7.7 %
Of those that own their equipment, 59.2% is bought new and 39% is
used.
Equipment is acquired from the following sources:
Dealer/distributor - 80%
Auction company – 30%
Used equipment dealer – 29%
Manufacturer’s representative – 16%
Other contractors – 9%
Reseller - 8 %
Very little equipment is purchased online. Only 6.3% of the
respondents purchased new equipment via the internet and 4.5%
purchased used equipment. 23% of those surveyed reported that they had
never used a computer and 34.8 percent were infrequent users of a
computer. 17.6% reported buying spare parts on the internet. There may
be increased purchasing online as over 25% of contractors report that
they intend to buy computers (see below)
Purchasing intentions.
The survey gives details of the type of equipment that each company
intends to purchase. Most popular are light to medium trucks (46.2%),
computers (25.8%), heavy duty trucks (22.1%), air compressors (20.7%),
welding equipment (20.4%), lasers (19.4%) and backhoe loaders (17%).
http://www.acppubs.com/buyers_intentions_2002.html
According to Caterpillar Tractor Co., earth moving equipment accounts
for 70% of construction industry costs.
http://216.239.51.100/search?q=cache:SeKnKHIuHSEJ:www.rpi.edu/~bellom/classes/IntroMgmt/Caterpillar.doc+%22construction+industry%22+%22equipment+accounted+for%22+&hl=en&start=14&ie=UTF-8
Hand tools.
Hand tools are more likely to be owned by individual construction
workers who are usually expected to provide their own tools and
equipment.
A survey by Reeves Journal found that on average plumbing contractors
spend annually $3,858 on hand, $5,258 on power tools and $4,538 on
other tools. The main reasons for the purchases are that tools get
worn, broken or lost. On average 10% of tools are replaced due to
theft. http://www.reevesjournal.com/CDA/ArticleInformation/features/BNP__Features__Item/0,3815,16651,00.html
Mechanical contractors with 20 employees spend about $16,000 on small
tools each year. With 30 employees around $30,000 is spent on small
tools. http://www.reevesjournal.com/CDA/ArticleInformation/features/BNP__Features__Item/0,3815,82530,00.html
Small tools account for 8% of contractors’ costs.
http://216.239.39.100/search?q=cache:jATcph45bCoJ:www.coleman.bc.ca/chargeoutrates.PDF+%22small+tools%22++contractors&hl=en&start=25&ie=UTF-8
Equipment sales
There is currently a slump in sales of new equipment.
http://www.enr.com/features/bizLabor/archives/020624e.asp
The equipment manufacturing industry anticipates sluggish growth in
2003. Business is anticipated to increase by 2% in the U.S., 3.2% in
Canada and 3.3 % internationally. There is a slow down in
single-family housing and in non-residential construction. Growth is
likely to come from the transportation sector.
http://www.aem.org/News/AEMNews/Details.asp?P=203
http://www.aem.org/Trends/Econ/PDFs/Outlook_2003.pdf
Hand tools market.
http://www.manufacturing.net/pur/index.asp?layout=article&articleid=CA139946
The construction industry loses $1 billion a year in stolen tools. An
average of 200 pieces of equipment are stolen on a weekly basis.
http://www.lojack.com/about/construction_theft.htm
The markets for construction machinery in various parts of the world.
According to Euromonitor International, the U.S. market for
construction machinery was $20.9 billion in 2001.
http://www.marketresearch.com/product/display.asp?productid=818334&SID=32053597-259773255-244501018
According to Euromonitor International the UK market for construction
machinery was worth £823 million in 2001.
http://www.marketresearch.com/browse.asp?CategoryID=343
According to Euromonitor International The French market for
construction machinery is worth Euro 3.3 billion in 2001.
http://www.marketresearch.com/product/display.asp?productid=818328&SID=32053597-259773255-244501018
According to Euromonitor International, the German market for
construction machinery was worth Euro 4.85 billion in 2001.
Further market reports are available at.
http://www.marketresearch.com/browse.asp?CategoryID=343
The European market for construction industry, welding equipment was
worth $264.4 million in 2001 and is projected to rise to $297 million
in 2008.
http://www.engineeringtalk.com/news/fro/fro163.html>
<Additional links:>
<Overview of construction industry >
<http://216.239.51.100/search?q=cache:ZmxPMMgP-dIJ:ftp.fedworld.gov/pub/irs-mssp/build.pdf+%22construction+industry%22+%22tools+and+equipment%22+billion+%22sales+of%22&hl=en&start=15&ie=UTF-8>
<Rental industry>
<http://biz.yahoo.com/e/010402/nri.html>
<UK plant and tool hire market is worth $2.2 billion>
<http://www.constructionplus.co.uk/hssthn_press_release.htm>
<2000 – plant hire in the UK £2.76 billion>
<http://www.the-list.co.uk/acatalog/kn71001.html>
<U.S. equipment rental $40 - $50 billion>
<http://216.239.51.100/search?q=cache:PwNDljcFxzIJ:www.rentalmanagementmag.com/Ratecards/RM%2520MediKit.pdf+%22construction+industry%22+%22equipment+and+tools%22+billion&hl=en&start=13&ie=UTF-8>
<Rental industry article>
<http://www.enr.com/features/bizLabor/archives/020318d.asp>
<Construction equipment exports>
<http://louisiana.construction.com/LSCN/LA-May02/LSnewbrief-May02.html>
<An estimated 1.3 million off-highway machines are in operation in the
U.S. with the majority being used for highway and heavy building
construction.>
<http://www.constructmyfuture.com/stu-muscles.html>
<$600 billion is spent on construction projects in the U.S.>
<http://216.239.51.100/search?q=cache:6lP8aqpNeI8J:www.agcohio.com/Downloads/Careers.pdf+%22construction+industry%22+%22equipment+and+tools%22+billion&hl=en&start=20&ie=UTF-8>
<Search strategy:>
<"construction industry" "tools and equipment" billion "sales of">
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22construction+industry%22+%22tools+and+equipment%22+billion+%22sales+of%22>
<"contractors" "hand tools" purchases>
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22contractors%22+%22hand+tools%22+purchases>
<"contractors spend" "hand tools">
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22contractors+spend%22+%22hand+tools%22>
<"hand tools" market "construction industry">
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22hand+tools%22+market+%22construction+industry%22>
<sales "construction machinery and equipment" billion>
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=sales+%22construction+machinery+and+equipment%22&as_q=billion>
<Hope this helps.> |
Request for Answer Clarification by
lost_in_knowledge-ga
on
01 Jul 2003 01:33 PDT
Hi belindalevez,
thank you for the work done. Looks good, I was really stuck with this
question myself. I have been away and then experienced some difficulty
accessing this question to provide feedback. But I have had time to
work out the material above.
Here goes,
When talking about construction equipment, it seems that the
construction world used that to identify heavy equipment. My interest
however is more into tools, power tools in particular. And more
related to the work after the ground has been leveled and the concrete
has set. That's when the mentioned firestop, anchoring and fastening
come into place.
Problem may be that the construction industry is less e-savvy and that
may be the reason that little can be found online (at least, by me :)
The sectoral approach and company size (turnover/# emp.)is also
important. At the moment I am working with a coarse less than 10%
percent of construction value across the board and am looking to
improve this number for different projects.
I hope this is a clear and fair request.
Look forward to hear from you!
L_I_K
|
Clarification of Answer by
belindalevez-ga
on
02 Jul 2003 07:21 PDT
<U.S. sales of power tools were $2.8 billion in 2002. The construction
industry accounted for 43% of sales. Companies with 10 or more
employees (61,000) accounted for 77% of sales. On average these
companies spent approximately $15,100 on power tools in 2002.
Companies with under 10 employees (204,000) accounted for 23% of
sales. On average these companies spent approximately $1,300 on power
tools in 2002.
According to Freedonia, the world market for power tools is worth
$18.5 billion. The market for power tools will grow globally 5.8
percent per year to 2005. Demand will come from increased construction
spending in developing nations and do it yourself home repairs in
developed countries. Electric tools especially saws will see the
greatest growth. This comes from a report which is available to buy at
a cost of $4500 for the entire report. Individual sections of the
report can be bought from $30.
http://freedonia.ecnext.com/coms2/summary__0001_000791_000000_000000_0001_1
More details about this study are given at
http://www.mindbranch.com/page/catalog/product/2e6a73703f636f64653d523135342d383536.html
World demand for power tools will rise to over $27 billion by 2007. It
is predicted that there will be rising demand for cordless power
tools. The fastest growth will be in Asia/Pacific, Latin America,
Eastern Europe and Africa/Middle East areas. Demand for power tools in
North America and Western Europe will be below the world average. Here
sales will come from replacement of broken tools and upgrading to
newer models.
In 2002, cordless tools accounted for three-quarters of sales.
More details are given about the market for power tools by
manufacturing.net. http://www.manufacturing.net/ind/index.asp?layout=article&articleid=CA239449
To access the article it is necessary to register which is free of
charge.
According to Industrial Distribution, the market for hand and power
tools will be worth $15 billion in 2005 up from $12.2 billion in 2002.
Power tools accounted for $7.4 billion (or 60%) in 2000.
According to Richard Wright of Wright Tool co. there is increased
demand for better quality professional tools. The construction
industry is using stronger fasteners and consequently needs stronger
wrenches.
Alan Sipe of Klein tools reports that sales of new products like
magnet tipped tape measures, torpedo levels, tools insulated to 10,000
volts and the Journeyman pliers line have sold well.
Sales of cordless power tools have increased. So too has the quality
of the products. Punjabi of Summit Tools reports that 24 volt tools
have failed to catch on due to their high price and limited choice.
Good design helps sales, particularly handle design.
Worldwide demand for power tools will be worth $27 billion by 2007.
http://www.alibaba.com/trade/industryinfo/showdetail/7961.html
The U.S. market for power tools was worth $2.8 billion in 2002.
http://www.mdm.com/pub/33_5/data/1749-1.html
U.S. sales of power tools to reach $5.1 billion in 2005. Professional
users are more likely to buy from high-end tool outlets. Prices have
decreased by about 40%.
http://www.tdctrade.com/mne/ele/hardware004.htm
The market for cordless tools is growing.
http://www.manufacturing.net/ind/index.asp?layout=article&articleid=CA272061
Professionals buy 73.7% of hand tools. The construction industry
bought 43% of hand tools in 2002. According to Industrial
Distribution’s 52nd Annual Survey of Distributors, they are growing
their businesses by increasing their customer base, doing strategic
planning, deleting customers, increasing product lines and Internet
sales.
http://www.manufacturing.net/ind/index.asp?layout=article&articleid=CA115648
There are over 265,000 construction firms in the U.S.. Only 61,000
have more than 10 employees. These firms account for 77% of the sales
of tools. http://www.contractortoolsandsupplies.com/media/2003/CTS_media_03.pdf
The internet is not a popular way for contractors to buy tools.
http://www.thetoolman.com/berlnk/diy.html
On average contractors replace their power tools every two years
because they get lost, stolen, run-over or dropped.
http://www.progressivedistributor.com/progressive/archives/Product%20sales/WattsUp.htm
In the power tool business five times as much is made from accessories
as from power tools.
http://www.manufacturing.net/ind/index.asp?layout=article&articleid=CA138355
Consumer demand for professional power tools has increased. This
article discusses the reasons why consumers are buying these tools.
http://homes.wsj.com/homeimprove/homeimprove/20001017-bensinger.html>
<Additional links:>
<Contractor tool and supplies magazine.
The site has a directory of construction tool and supplies
distributors. >
<http://www.contractortoolsandsupplies.com/>
<Black & Decker Corp.>
<http://research.businessweek.com/business_summary.asp?Symbol=BDK>
<The hand and power tools market 2001.>
<http://www.marketstudies.com/hpt2001/hpthigh.htm>
<Speciality Tools & Fasteners Distributors Association>
<http://www.stafda.org/flash.html>
<Rentals – 75% of customers are contractors.>
<http://www.heraldbusinessjournal.com/archive/jan02/unitedrentals-jan02.htm>
<Under union agreements employers are supposed to supply carpenters
with power tools however in practise many carpenters are expected to
provide their own cordless drills. >
<http://groups.yahoo.com/group/gangbox/message/854>
<Showroom antics>
<http://www.manufacturing.net/ind/index.asp?layout=article&articleId=CA131179&stt=001&text=carpenters>
<Hope this helps.>
|
Request for Answer Clarification by
lost_in_knowledge-ga
on
02 Jul 2003 08:15 PDT
Hi Belindalevez,
Can do you your same magic for the fastening and anchoring?
I need a couple of days to work through your previous answers, but
they look good and have some interesting headings.
And I am also looking for differences in spending per sector related
to tool usage and consumabel usage. The once per two year was a good
one, but maybe that can be more defined.
I probably have some more questions close to the original, but will
post them separately. I am really impressed.
Let me know what you find.
Thanks,
L_I_K
|
