Looking at Makita Tool’s 2019 annual report (PDF), I was surprised to find that only 14.8% of their sales revenue is from North America.
Tool and accessory sales here amounts to less than 15% of their total revenue. I knew that North America was a minor contribution to their worldwide sales revenue, but less than 15%?
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In comparison, sales revenue in Japan, where Makita is headquarters, was 18.8%. Their revenue from Europe was 43.5%, nearly 3X the amount earned from North American sales.
The 2019 annual report contains data for the year ending March 31st, 2019.
Total sales revenue for the 2018 fiscal year was 490,578 million Yen, which converts to ~$4.608 billion at the current exchange rate. 61.2% of that comes from power tools, or approximately $2.765 billion.
$4.608 billion in total revenue, x 14.8% = ~$682 million in revenue from the United States, Canada, and Mexico. That’s quite a few cordless power tools and accessories.
Looking back at our post discussing Stanley Black & Decker (Dewalt, Craftsman, more) and TTI (Milwaukee, Ryobi NA, more) financials, Stanley Black & Decker earned $13.982B in 2018, with $9.814B of that in tools and storage, and TTI earned $7.021B in 2018, with $6.009B of that in tools and accessories.
In comparison, Stanley Black & Decker earns 55% of their total revenue from the United States, and a 60% share of their tools and storage revenue (Source: Investor Presentation July 2019). TTI earns 76.5% of their sales revenue from North America (Source: TTI 2018 Annual Report Financials).
Makita earns ~$682 million in revenue from North America, Stanley Black & Decker earns $7.700 billion in revenue from the United States in all categories, plus $628 million from Canada, and TTI earns $5.372 billion in revenue from North America. If you approximate Stanley Black & Decker’s tools and storage category revenue (I couldn’t easily find a regional breakdown with dollar amounts), 60% of $9.814B amounts to approximately $5.888 billion in tools and storage revenue in the United States.
What I find interesting is that Makita is a smaller company than both Stanley Black & Decker and TTI, and far less diversified, but still earn billions of dollars in annual revenue. Keep in mind that TTI’s figures include brands such as Milwaukee, and also Ryobi and Ridgid power tool efforts at Home Depot (in North America), and that Stanley Black & Decker’s brands include Dewalt, Mac Tools, Stanley, and many other big names.
Makita’s revenue contribution from sales in the United States and North America are small compared to their worldwide figures, and are roughly an order of magnitude lower that what Stanley Black & Decker and TTI earn here.
Unfortunately, it’s impossible to know how Makita tool sales compare to the performance of Dewalt and Milwaukee brands individually, since their corporate parents don’t release such data.
Hilton says
Wow that really surprised me.
It’s also a warning to the other North American power tool companies that if they slip up Makita already has the necessary channels in place to take up the slack.
PHILIP JOHN says
I think their 2x 18v … ergonomics from hell tools is a pretty big slip up of their own.
Julian Tracy says
I own a few of the x2 tools: track saw, mitersaw, 7.5” BL circ saw, blower, chainsaw… I prefer this solution to the big honking different voltage batts of the Dewalt variety or the big high amp Milwaukee solution. I can use any of the batteries I have on hand, even a 2.5amp need be. One kind of battery, nice medium size, fastest charging of all the pro level tools. None of the x2 tools I own are ergonomically challenged by having two batteries.
And pricing-wise, with the way Makita was giving out free 5.0amp two packs with every single tool made the system a no brainer in terms of value.
PHILIP JOHN says
All of the x2 are ergonomically challenged when considering what is possible with the range of motion of a single battery. This is why the dewalt 60v grinder is by far the best .
All companies have give away deals .. and don’t forget using say a 2 amp h side by side with a 5amph in x2 configuration. has pretty big draw back.
Big is the only way left to go… as new bigger products go cordless. When they do… makita will have to fumble around with 8 batteries to match 4 with competitors… some In use and some on charge. And that’s only one tool.
Makita is not that fast… your work is just not that big. Considering what flex or high out put is doing with big power along with fast charging. Makita is medium duty player in terms of big job power requirements.
pr20de says
I’m a DeWalt guy through and through, but the only Makita 18v x2 tool that I see that looks to have pretty bad ergonomics is their grinder. Everything else seems to be on par with most others.
Axeman says
DeWalt’s problem with the FLEXVOLT lineup, are the batteries are not compatible with all of their 20 volt tools, none of their 20v batteries will work on their FLEXVOLT tools, and DEWALT has had a lot of warranty claims with the FLEXVOLT batteries failing (AVE commented about it in one of his tool vids). Yes, DEWALT will eventually rectify this issue, but this system is inferior to Makita’s X2 design. I can use the SAME 5 amp batteries on all of my tools, not just certain tools. In addition, Milwaukee’s large 12 amp battery packs require a special charger if you don’t want to wait 3 hours for it to charge.
Makita’s X2 lineup is a superior design to the competitors because I can use the same 18v battery for all of my tools and with my dual charger, I’ll have both batteries charged up in 45 minutes. Not to mention, all of my battery packs are the same size and I don’t have to buy a special charger to speed up the charge times.
Further, the ergonomic challenges are no different than the other brands having to find ways to accommodate their huge 12 amp batteries. Personally, all of my X2 tools (chainsaw, blower, string trimmer, and grinder) have outstanding performance, that have the same level, if not better performance, than the competition.
PHILIP JOHN says
The battery set up of dewalt…
Is the same as … using 2 different amph batteries on makita. The small battery takes all the heat.
And as you call it a special charger for Milwaukee or dewalt… makita needs a special charger too… multi charger.
XRH07 says
Only the angle grinder is straight up bad. The recipro is borderline.
Everything else is fine.
Carlos says
I have the 18v x 2 Brushless 14″ Chainsaw and I love it. Maybe the best chainsaw I’ve ever used
PHILIP JOHN says
Dewalt will be doing 2x configuration as well… just on larger tools. The mower is already 2 x battery configuration.
But another reason to do it at 60v is it more efficient with a higher amp draw.
This maybe why 40v was axed. If 2x configuration is to proceed at flexvolt 60v.
It’s much easier when already having some of the batteries to have cordless site.
Makita has not publicly said they are committed to a cordless site.
Mickey says
For the most part Makita was the only game in town for cordless tools back in the 80’s, I wonder what their share was then and what happened? On a side note, Panasonic makes excellent cordless tools but I haven’t seen them for sale anywhere for quite a while, guess they gave up on the US market as well.
fred says
I have to admit that when they introduced their 6010 NiCad powered drill in 1978 – I thought they were starting to make toys. It was the first NiCad battery-powered tool as far as I can tell. At that time they were starting to make inroads in the US market with mostly low-priced drills and saws.
When Porter Cable introduced their 12V NiCad Magnequench drill – we bought our first battery-powered tool. But by the time we were switching to LiIon in or remodeling/gc business – we decided on Makita.
Andy says
The US is a tough market. Companies need to do huge volume to offset the low margins needed to compete. They probably don’t really make any profit in the US, so why go after the market hard?
Logir says
From an independent retailer’s standpoint, the margins are ridiculously slim (18% or less) unless you buy into promos including accessories or extra batteries, with the boatload of tools you have to buy.
Where Milwaukee kills, and they know it, is where they have the guys in stores throw in freebies. Doesn’t require retailer buy in. No inventory costs, or reimbursement to retailer for standing inventory, without having to pay a body.
I know a guy who worked for Milwaukee for a while. He said Home Depot is like Walmart. They tell you what they’ll buy it for, and you can figure out how to sell it to them.
Gordon says
I know HD also only pays for the tools they sell. That’s why 99% of the time no one will look at you if you walk out of the store and set off the alarm. Have you noticed how they have increased the self checkouts and decreased cashiers? Stop loss isn’t a priority because they don’t lose anything on it.
alex says
Makita is pretty big in continental Europe. Dewalt is not that big and really expensive and Milwaukee just starting to establish a presence.
I was looking at prices in France and I was really surprised how expensive Dewalt tools are. For instance, the Flexvolt grinder DCG414T2 is 600 euros…
alex says
ok I was wrong it’s the grinder plus two batteries. Still expensive though.
alex says
And that price includes taxes (45 euros)…
Altan says
I have told before also, you Americans get everything cheaper than Canadians, Canadians get everything cheaper than Europeans, and Europeans get everything cheaper than Australians, Even German made Felo and Wiha are cheaper in the US than Germany itself. I don’t think it is just related to lower import tax in the US.
kk says
The price depends on which dealer you buy from, here in europe. Knipex 250 cobra can be half as expensive elsewhere.
Tell me us prices with numbers wiha, knipex, vbw, hazet, stahlwille, gedore, felo, witte etc, Then i will tell you what i pay here in europe.
Frank D says
Would have loved to buy more Makita gear, absolutely loved my Makita 12v kit, it rebuilt a 100yr old house … but discontinued, then Ridgid got my attention, …
KajunFramer says
Makita makes the most durable tools on the market. They just work. (Bells and whistles rarely matter to the professional; that’s stuff to appeal to a DIY’er.) I have used Makita for over 20 years, I still have some of the old tools, and they’re going strong. I even have a cordless set that is 8 years old, has been worked like a mule, and the complete set still works great.
Steven says
Makita vs dewalt vs Milwaukee is like the equivalent to xbox vs playstation vs nintendo.
Your either loyal because youve invested alot of money in tools, or gravitate to the best innovator that pushes change. Ive worked with the big three. Innovation trumps stagnation.
Sorry to say, for most tradesman, your tools cannot last 20years of abuse. No tool is perfect and all have an expiration date…especially the higher performance ones.
Makita, at least up in Canada is not as common as it used to be with Dewalt and Milwaukee sucking people into there cult of advertising and superior marketing.
KajunFramer says
I replied once already, but it evidently was deleted. No, a professional tool can last some 20 years, if it is taken care of, and is a quality tool to begin with.
And coming from a long line of Milwaukee users (but having switched to mostly Makita) , I can say that I choose tools based on durability and functionality. Many tradesman that I know think the same way.
KK says
Makita is much bigger here in Europe ( continent) vs usa.
Milwaukee is a small player,
EJ says
If Makita rebrand themselves with an American name for the US market they will sell a lot more. TTI knew.