Industry Report: Power Tools & Other General Purpose Machinery Manufacturing

Provided by:

Industry: Manufacturing

Naics: 333999

Private Company Multiples

Industry Overview

Understanding the world of power tools, welding gear, and other general purpose machinery is about reading the pulse of the entire manufacturing sector.

First, the hard numbers: We're looking at a market that's been on a roller coaster. A 2.0% annual contraction, bringing us to $54.8 billion by the end of 2024.

Here's the key: This sector is in lockstep with construction and broader manufacturing trends. When those sectors dip, power tool makers feel the effects.

Over the past five years, the industry has been boosted by rising construction activity and industrial production. While commercial has slowed, residential picked up the slack since 2020. People stuck at home suddenly decided their living spaces needed an upgrade.

Rising disposable incomes have been like fuel for this industry. People are investing in their homes. That's a trend smart buyers should be watching closely.

Looking ahead, we're projecting a 1.7% annual growth rate, potentially hitting $59.6 billion by 2029. Why? Because manufacturing and construction are revving up again. International trade uncertainties are clearing up too, and that's good news for this sector.

For current owners: Your ability to weather these cycles is what defines your value. How diversified is your product line? Are you plugged into both commercial and residential markets? These are the questions that will determine your staying power.

To potential buyers: Look for companies that have navigated these choppy waters successfully. They're the ones who understand the industry's rhythms and have the agility to adapt.

Profitability is the name of the game here. EBITDA settling at 4.9% of revenue in 2024, down from 7.1% in 2019. The industry is in transition.

Key Financial Metrics

Income Statement Benchmark

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