Impact of Other Industries on Power Tools Industry Essay

Impact of Other Industries on Power Tools Industry - Essay Example Hand Tools are tools that are powered manually (U.S. Department of Labor, 2002). These tools are powered solely by the person using it and do not use motors (Wikipedia, 2007). These include hammers, screw drivers, hand drills, saws and knives etc., that require manual power to operate. The Hand Tools industry can be a threat for power tools. Though outdated and used less frequently, yet they can be the tools of choice by some consumers due to their lesser costs and supposedly longer lives. Hand Tools offer some benefits as compared to power tools, these don't rust easily, there is no expenditure required for purchasing batteries etc., electricity is not required to operate these and there are no essential scheduled maintenance requirements. Hence, hand tools can provide a cost competitive alternative for some people, mainly the Do-It-Yourself (DIY) type of customers. The forecasting for the hand tools industry depends upon the value the user derives from the use of these tools. The estimations can be obtained using customer surveys that show preferences of customers who are using hand tools. The surveys can provide valuable information about the features that power tools manufacturers should try to incorporate in their design if possible. In addition, some estimates can be developed by analyzing the revenues and sales data of various companies providing hand tools and then comparing this data with the power tools sales information to identify the extent of competition hand tools providers are posing for power tools industry. Bench Mounted Tools Bench Mounted tools are those that are not portable; these are fixed (mounted) at a place. Usually, these are required in small industries where tools like Thickness Planer, Saw Table etc. (Mitre 10, 2007) are used by a group of workers at the same time. These are mainly used where a number of people are involved in doing a single task like an assembly line where all workers follow similar procedures. In these kinds of situations, using portable tools is cost ineffective; instead the bench-mounted tools are used for efficiency and effectiveness gains. These are also used in metal working environments. The Bench Mounted tools industry provides competitions to the portable electric power tools industry because a large number of industries have now installed fixed tools instead of providing portable tools to all its workers. The forecasts can be derived by analyzing the historical industrial data for new technology deployment and from sales figure of these tools. Air Driven (Pneumatic) Tools Pneumatic tools are powered by compressed air and include chippers, drills, hammers and sanders (U.S. Department of Labor, 2002). These tools are usually used in the mechanical and automotive industries which require high power tools. They may pose a competition to the portable electric tools market where the electric tools face the threat of substitution. The relevant forecasts and statistics can be obtained by analyzing the market size and segmentation. Liquid Fuel and Hydraulic Power Tools These tools are operated by generating power from liquid fuel like gasoline or water. These are used in environments where there is a need of extremely high power to operate the tool. The industry data can be obtained for estimating the market size and usage level and then an estimate can be made regarding

Housing Pre and Post Recession Lab Report Example | Topics and Well Written Essays - 750 words

Housing Pre and Post Recession - Lab Report Example From figure 1, we see that the data starts off from the middle of a recession in 1982. It lasted only till the 4th quarter of the year. The percentage of GDP growth since then rose sharply until the 2nd quarter of 1982 and then started gradually moderating. The ensuing period was characterized by some volatility until the 1st quarter of 1991 from where the GDP growth dipped sharply and the second recession initiated. This recession also lasted only for two quarters. The decade of the 1990s marked a steady climb in the GDP growth rate and signs of the next recession were observed only in the first quarter of 2000 since when it started decreasing rapidly. This third recession lasted from the 1st quarter of 2001 to the last quarter of the same year. There was a small climb in terms of GDP growth since then until 2007. From the last quarter of 2007 the recent recession set in and it lasted for seven quarters making it the longest recession in the time horizon under consideration. Figure 1 Housing Starts Turning to the Housing markets, we start by looking at housing starts in Figure 2. Interestingly, apart from a steady dip a few quarters ahead of the current recession, inter-temporal movements in housing starts have been moderately stable. The recessions do not seem to have affected housing starts to any considerable extents and we find only small dips in the first two recessions. Strangely during the third recession, we find that housing starts actually increased. However, it can also be seen from the graph that housing starts exhibit a marked decline from around the 3rd quarter of 2005 onwards well into the recent recession. Figure 2 Average real housing prices The next housing market indicator considered is the real average housing price. As can be seen from figure 3, housing prices exhibit smooth but evident cyclical movements. Comparing these movements with figure 1 reveals that in terms of trends the housing price movements particularly in the latter half of the time horizon match those of the real GDP growth although real GDP volatility is considerably higher. The peaks and the troughs in the average housing price time plots are clearly distinguishable and there are substantially lesser reversals making the series a lot smoother. Although resemblances in trend are not so clear in the quarters before 2000, since then the GDP growth and housing prices seem to follow very similar patterns. Figure 3 Months’ supply Finally, in figure 4 below, we look at movements in months’ supply of housing across the duration considered. In between the first two recessions here, the series seems to have been substantially volatile though stably so, around a mean of 2. Thereon, the movements of the series have been relatively less volatile. Figure 4 We see from the figure that months’ supply has declined in periods subsequent to the 1st, 2nd and 4th recessions. After the 1982 recession, housing supply exhibits a small decline in the ge neral trend although it as mentioned earlier fluctuated around an average. A more pronounced decline in the series occurred following the 2nd recession in 1991. The strong declining trend during this phase continued on through the onset of the third recession. There was a surge in early 2005 reflecting what we know now as the gradually forming housing bubble. The series attained its maximum halfway into the fourth recession. The housing supply series seems to reflect a lagged