2022 Supply Chain Challenges Affecting the Power Tool Industry

Published 1/14/22 by Natalie Schmidt, MBA

 

Going into the new year, professional trades(wo)men and tool dealers alike were hopeful of improvements to the severe supply chain delays impacting product availability that we all faced in previous years. The reality is, it hasn't gotten much better…

Major premium manufacturer brands in the tool industry are no exception. Brands such as Festool USA, Fein USA, Triton Tools, Metabo USA, JPW Industries (Jet Tools, Powermatic & Wilton), Laguna Tools and Sawstop continue to face product delays and component availability obstacles affecting lead times, pricing and promotions.

Longer Lead Times Due to Uncompromised Quality

Despite the temptation to compromise on critical, unavailable components, German manufacturers such as Festool have been unwavering in the quality control of their power tools.  Where we were once able to get tools within a week, this, in turn, has grown lead times for popular tools, such as the Festool Kapex miter saw, by as much as 6 months.

"Our three-year comprehensive warranty and stringent product testing standards require us to source only excellent quality parts and material to ensure Festool products meet the quality and reliability expectations of our end customers." - Festool USA

While longer lead times certainly posed a new challenge at the start of COVID, the distributors that could adapt rapidly have continued to be successful in getting the same high-quality products in the hands of consumers as quickly as possible. We consider the long term result of continued reliability of our premium tools to be worth the wait.

Starting in the summer of 2021, Beaver Industrial Supply calculated and forecasted inventory items based on lead times, ordering 3-6 months in advance. While at times consumers still have to wait 2-6 weeks for tools, our team is working hard to stock enough inventory in our four warehouses to meet demand.

Industrial Machinery Prices Continue to Increase

As the cost of goods increased, especially for the power tool and industrial machinery industry, prices have increased up to 10%. In some cases, prices have increased by several hundred dollars- no small increase.

Some manufacturers were even forced to implement several price increases throughout the past few years to mitigate against the rising raw material and shipping costs. For example, the MTSF236110175-0130, Laguna Tools F2 Fusion Tablesaw was once available to consumers prior to summer of 2020 for $1,299 with a $99 shipping and handling fee. The total price has since increased by $400 to $1,599 with a required $199 shipping and handling fee.

Don't Expect Sales Going Forward

Manufacturers like JPW Industries and Laguna Tools had been known in the industry for having consistent 10% off woodworking-category machinery sales; a lot has changed.

Even this past Black Friday looked significantly different than ever before without the usual 15% off sale that Jet Tools & Powermatic have run in the past. JPW Industries only offered two door busters with limited quantities available to each distributor to sell at the discounted rate.

Because of the increase of demand and decrease of supply, industrial machinery brands are no longer able to discount machines. As far as we know so far, there aren't many major sales planned for 2022.
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As this continues to be the new normal, the best time to buy will always be now!