Chainsaw Imports Cut Down, Signs of Fresh Growth

Fall started this week, which means the leaf- and wood-clearing season, and final preparation of winter firewood, gets underway soon. This normally results in a rise in garden and woodcraft power equipment sales by retailers. So, how is the chainsaw industry doing?

The peak season for imports into the U.S. is in July and August. Chainsaw imports totalled $263 million in the 12 months to July 2016, 6.6% lower than a year earlier and well below the peak of 2014, Panjiva data shows. The number of chainsaws imported fell 6.5% to 3.38 million over the same period, and was 4.1% lower in the month of July.

Germany and China are the largest exporters with a 34.9% and 37.6% share of U.S. imports respectively. Imports from Germany jumped 24.4% in July, and China fell 17.2%, marking a turnaround in performance from earlier in the year.

The U.S. also exports saws, mostly to Canada but also to Europe, from a mixture of domestic production and re-export by retailers. This has been a declining business over the past five years, with exports in the 12 months to July 31 16.7% lower on a year earlier despite a 37.2% rebound in July.

SIGNS OF FRESH GROWTH AFTER SAW IMPORTS CUT

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Upper panel shows imports, lower panel total imports and total exports from U.S. of HS 8467.81 products Source: Panjiva

The import of parts and replacement chains / blades for saws are significant industries in their own right, and were worth $68 million and $81 million in the past 12 months, Panjiva data shows. Spare part imports are led by China, reflecting the underlying supply chain of the final saws which are partly assembled in Germany and Sweden. Replacement chains / blades are imported predominantly from Switzerland and Canada.

Owners are clearly maintaining their saws rather than buying new ones – imports of parts increased 13.2% in the 12 months to July 31 and 4.1% in the month of July, while new blade imports climbed 8.7% over 12 months and 11.9% in the month.

OWNERS TAKING MORE CARE OF SAWS

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Upper panel compares imports of parts (HS 8467.91) with blades (HS 8202.40) and assembled saws (HS 8467.81) Source: Panjiva

There may have been a significant pickup in the industry in August with shipments of all saws, parts and blades increasing 71% on a year earlier during the month. Imports by leading German brand Stihl (your analyst’s saw of choice is the Stihl MS-61) increased 14.7%, while Sweden’s Husqvarna jumped 85.7%.

CHAINSAW IMPORTS REV UP IN AUGUST

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