The power-tool industry has been considered as a part of the economy which has certain relations with other industries. The growth and the income earned from these industries have affected the industry such that movements and other changes in these industries have its corresponding impact with that of the economic indicators in the power-tool industry. Among the closely related industries is that of the real estate industry and the construction industry because of its dependence on power tools for certain segments of their processes.
The effectiveness of the power tool industry in being able to facilitate the processes of certain production shops, “building and construction industries,” and residences has been well-recognized (Hendry, Eccles, Ghoshal, & Jenster, 1992, p. 299). The need of these three areas lead to the consumption or purchase of power tools in order to accomplish tasks which are beyond the human capacity and/or in more efficient terms. The changes that occur within the building or construction, for example, would also have its corresponding impact on the power tool industry.
For example, there is a decrease in the construction of new infrastructures, then power tools would also have a lesser demand. Moreover, the real estate industry, which deals with the residential infrastructure, would also contribute to the demand for power tools (US Department of Commerce, 1994). The higher the demand for houses would mean a greater number of new construction, repairs, or maintenance that would also require the use of power tools.
In this regard, the trends of new housing construction, repairs, and maintenance would also affect the trends for the power tools industry. Lastly, the electronics industry can also be considered as one of those which are affecting the power-tool industry (Taylor, 2007). Unlike the first two where demand for power tools is present, electronics is considered as an input to the production of power tools. Changes here are considered to affect the supply or output of the power-tool industry.
References Hendry, J. , Eccles, T. , Ghoshal, S. , & Jenster, P. (1992). European cases in strategic management. London: Thomson Learning. Taylor, S. (2007). Power tools, tangentially related industries and its effects on the PEPT. Retrieved April 30, 2009, from http://www. associatedcontent. com/article/129406/power_tools_tangentially_related_industries. html. US Department of Commerce. (1994). US industrial outlook, 1994. Darby, PA: DIANE Publishing.