STHL East Africa bets on demand for power tools to grow revenues

German power tools manufacturer, STIHL East Africa, has reported a significant increase in revenue in its first year of operation since upgrading its marketing office to a fully-fledged sales subsidiary.

The transformation into STIHL East Africa Limited, launched in August 2022, is attributed to the region's growing demand for power tools. This strategic move has allowed the company to expand its product portfolio, enhance accessibility through a robust dealership network, and solidify its presence in the market.

Francois Marais, Managing Director, STIHL: "The demand for our products has surged, prompting us to make significant investments in the region. We have doubled our warehouse capacity , tripled our staff and devoted more hours to training our employees, dealers, and customers nationwide."

The company has reported a significant increase in its market share in the region, reinforcing its dealer network as the demand for power tools continues to rise.

Francois: "The growth is driven by expanding economic activities in agriculture and forestry, along with the increasing adoption of battery-powered tools. Power tools are also gaining popularity among residential users, with consumers increasingly favouring manual and handheld tools for applications like cleaning, landscaping, and farming, in line with the Do It Yourself (DIY) trend. We anticipate this growth trend to persist in the market.”

The company highlights that power saws performed exceptionally well during the year, while other popular handheld power tools include tillers, brushcutters, earth augers, high-pressure cleaners, and water pumps.

Marais made these statements during the launch of STIHL's "Omoka na Deal ya Power" Campaign, where the company is offering bonuses and free service parts with the purchase of their power saw, MS 382, and their clearing saw FS 460.

According to a report by Markets and Markets, the global power tools market is estimated to reach $65 billion in revenue by 2027, with a Compound Annual Growth Rate (CAGR) of 8.9%.

The research firm highlights the current challenge for power tool manufacturers, stating, "Customers are seeking tools that provide both performance and comfortable ergonomic designs to meet their needs."

Last month, STIHL East Africa announced its plans to introduce battery-powered products to the East African Market as part of its one-year anniversary celebrations in the region.

This move is driven by the demand for sustainable energy sources amid global climate change challenges. The battery-powered products set to be available in the East African market include chainsaws, brushcutters, hedge trimmers, lawnmowers, sprayers, and blowers, among others.

Pauline Ngigi, Marketing Manager, STIHL East Africa: "Sustainability is a core aspect of our brand, and these battery-powered products will positively impact the environment, reducing carbon emissions."

www.stihlea.co.ke