Outdoor power equipment on the rise
Power lawn and garden equipment demand in the United States is forecast to rise 2.7% annually through 2013, reaching $9.7 billion, according to research from the Freedonia Group, a Cleveland-based research firm.
Although gains are expected to be sluggish in the short term, a positive outlook for the landscaping industry and the recovery of the housing market will provide opportunities.
Product innovations will play a role in the category's growth, as consumer demand increases for equipment that is easier to use, more efficient and with additional safety features and lighter weight. One dark cloud on the horizon for manufacturers, however, is the struggling golf industry, where the total number of courses is expected to decline, according to the research firm.
The findings and trends are part of a new study, "Power Lawn & Garden Equipment."
The residential market dominates power lawn and garden equipment sales, representing 62% of the total in 2008, the study reports. In addition to benefiting from the turnaround in housing completions, gains in the residential market will be boosted by solid growth in disposable income levels. Opportunities in the commercial market will be strongest in the landscaping industry. The number of professional landscaping firms will continue to rise, benefiting from an aging U.S. population.
Lawnmowers will continue to be the largest product segment and will be among the fastest growing products through 2013, benefiting from recovery in the housing market. Turf and grounds equipment is expected to post gains due to the continued growth in the number of professional landscapers.
Replacement sales will be the key driver of demand, according to Freedonia, especially in the residential market. "Therefore," according to the report, "it is increasingly important for manufacturers to offer new product enhancements as a means of stimulating replacement demand for existing equipment. Otherwise, consumers will keep their existing equipment until it is no longer operable."