Power Tool Market Analysis Essay Example | Topics and Well Written Essays - 500 words

Power Tool Market Analysis - Essay Example Finally, the difference in the estimates is not material. The projected values represent a decline of approximately 11.5% over the last year's figure of 1.8 million units by U.S. Census Bureau. The values for the last 5 years show a continuous declining trend. The following table summarizes the historic actual values. From the above statistics, it can be concluded that the demand for power tools in this sector may not increase in 2007 as the economic activity is declining. The demand may infact decrease since lesser number of houses will be developed. The expenditure for residential construction is expected to be at $504 billion as per Realtor, and $434 billion as per Haughey, in 2007. This shows a declining trend as the last year's (2006) figures show that the expenditure was $581 billion and $608 billion for 2005 (Realtor, 2007). The actual historic data is shown in the table below (U.S. Census Bureau: 930 - Value of Private Construction Put in Place: 1995 to 2005, 2007). This declining trend indicates that this sector will have less demand of power tools in 2007 than it was in prior years. This is because the expenditure for construction will decrease and power tools industry provides the tools that are used for construction. Hence, demand will be negatively affected for this market. The expend