Makita’s North America segment – which encompasses Makita USA, Canada, and Mexico sales and support – saw a significant decrease in sales.
For the fiscal year ending on March 31, 2024 (2023), Makita North America’s revenue from external customers was 96.111 billion yen, or ~$617.5 million.
This is a decrease from 121.685 billion yen, or ~$781.8 million USD for the year ending on March 31, 2023 (2022), a difference of around 21%.
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For the sake of simplicity, we describe the fiscal year ending on March 31, 2024 as “2023,” and the year ending on March 31, 2023 as “2022.” This is different from Makita’s naming structure where, for example, April 1, 2024 was that start of their 2025 fiscal year.
All USD figures are converted from Japanese yen at the rate accurate as of the time of this posting, with 155.64 JPY converting to $1 USD.
Makita’s total revenue was 741.391 billion yen, around $4.764 billion, for 2023, down 3% from 764.702 billion yen, around $4.914 billion, in 2022.
The company’s North America segment ended 2023 (fiscal year 2024) with a loss of 126 million yen, or around $810 thousand. This is down from their loss of 912 million yen, around $5.86 million, in 2022.
Overall, Makita announced total operating profit of 66.169 billion yen, around $425.2 million, for 2023, an increase of 134.3% compared to 28.246 billion yen, around $181.5 million, for 2022.
The company is forecasting a slight decrease in overall revenue and further increase in profit for the present fiscal year (ending March 31, 2025).
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From the reported figures, Makita North America’s contribution to the company’s overall sales revenue decreased from 15.9% in 2022 to around 13.0% in 2023. North America continues to be Makita’s third largest market.
In their latest report, Makita says:
In North America, although consumer spending overall remained comparatively strong, housing-related demand was sluggish as the high interest rate environment continued, and sales decreased, centered mainly on home improvement stores, ending at 93,677 million yen, a decrease of 21.3% year on year.
The 93,677 million yen figure refers to their consolidated revenue breakdown by geographic region, whereas the figures above are for their different business segments.
sales decreased, centered mainly on home improvement stores
Things seem more complicated than that.
Makita also says in their recent report:
In this situation, the Makita Group has focused on expanding its lineup of cordless products, including power tools and outdoor power equipment in the durable high-power, long-life “40Vmax Lithium-ion Battery” (XGT) series, and has introduced new products in new categories, such as robotic lawnmowers and cordless sweepers.
We recently reported that Makita is missing from Home Depot’s cordless outdoor tool deals, which was unusual given the company’s historical focus on outdoor power tools, especially battery-powered in recent years.
The pull back and even scarcity of spring 2024 promotions at Home Depot stores and independent dealers, compared to what we’ve seen in the past, followed what I saw as a reduction in holiday 2023 sales and promotions, especially compared to the company’s aggressive deals and discounts the prior year.
Compared to their performance last year, Makita saw lower sales revenue in North America, but also reduced their losses. At the same time, the company’s overall revenue dropped slightly and their profits grew.
It seems that Makita can sell fewer tools in the USA and surrounding regions, and lose less money doing so. Potentially, does that mean fewer sales could get the North America segment back to profitability?
There have been rumors that Makita USA laid off sales reps across the country. Makita USA cut jobs company-wide around this time last year, but we have not been able to verify reports of layoffs apart from what was disclosed in official WARN notices.
Those layoffs went into effect approximately 3 months into Makita’s fiscal year.
Growth and increased market share are generally goals that seem to require increased spending, at least in the cordless power tool industry. Makita’s business in North America seems to be dragging down their profitability, and it’s uncertain if they are prepared to accept even lower profits or further segment losses to work towards such goals.
Makita frequently releases new XGT cordless power tools and technologies internationally, but many still haven’t launched or even been announced in the USA yet.
Makita’s focus on the XGT platform has been reinforced with additional statement, such as:
We strive to deepen and develop the market centered on “40Vmax Lithium-ion Battery” series.
In reference to improvement of ROE (return on shareholder equity):
[Makita will work on] Strengthening of profitability by differentiation from other companies through the expansion of our lineup of high value-added products for professionals centered on 40Vmax batteries and the provision of high quality after-sales services using our meticulous network of bases.
Makita does not reference their aging 18V cordless power tool system in their most recent financial reports.
7 months ago, I said that Makita might not launch their new Packout-like tool box system here. The modular tool storage system, documented thus far in patent applications, has not yet been announced or even teased about.
I maintain that launching such a tool storage system might involve massive costs, at least if Makita holds any hope of successfully competing with Milwaukee Packout and other popular systems presently on the market, some with expansive selections.
I mention this to illustrate how Makita’s financial reports can provide context to their customer-facing activities, strategies, and decisions.
It appears that Makita has been recalibrating their sales focus in the United States, or at least testing out new strategies. For example, Makita USA launched new rebate deals towards the end of the 2023 holiday shopping season.
I think that perhaps Makita realized they can’t compete with the top power tool brands in the USA anymore, namely Dewalt and Milwaukee, and are adjusting their strategies accordingly. In my opinion, this might be good for the company’s profits, but to the disadvantage of current and potential Makita tool users.
Consider other cordless power tool and equipment makers that seemingly stopped competing against Dewalt, Milwaukee, and Makita in the USA. What has happened to their relevancy and market share here since then?
The company might have to spend a massive amount of money towards growth, and sustain such spending for a number of years, to see any significant increase in market share.
If they’re not interested in doing that, what other strategies will Makita employ to keep sales in North America from slipping further?
What if Makita stops bringing customers to Home Depot stores? At some point, might Home Depot replace Makita as one of their flagship professional cordless power tool and accessory brands?
It will be interesting to see if Makita’s USA strategies change this year.
Around 8 months ago, Makita USA was given a new President and CEO. Some of the new strategies we’ve been seeing could be tied to the change in leadership.
In my opinion, Makita USA’s Outdoor Adventure line of olive green-colored power tools and accessories, which launched in late 2022, was a sound idea with poor execution.
Personally, I don’t think pulling back on seasonal sales and promotions is a good idea, but it seems that – at least for the past financial period – it helped reduce Makita USA reduce their losses.
Nathan
Not one bit surprised. Nothing they make cordless wise interests me. I mean you could argue everyone else has stepped up their game but it’s also that Makita doesn’t make anything compelling
Not saying I hope they go. Competition is important and I’d say their stuff of the 90s and early 00s is probably why the other stuff exists
Skylar
The only one I can think of offhand is the LXT drywall cutter- it’s a must have for any reno job and nobody else makes something similar. That said, I run mine off M18 batteries with an adapter…
Their best LXT impact driver has an excellent trigger (some might even say match-grade), but the settings are too complicated.
That’s all I’ve got. Otherwise I’m in total agreement with you.
Daniel Bell
Makita needs to start making more tools for lucrative mechanical trades to compete with milwaukee. They have the best options for carpenters but that is a small part of the profitable market now.
Electrotrician
They make plenty of tools that are great. Their 40V XGT lawn equipment is very nice. Their XGT circular saw is probably the best cordless out there. Their hammer drills are nice. The problem is they are pricing it way higher than Milwaukee and haven’t had any major free battery deal in a while so even if you like their stuff like I do, it’s too pricey. I ended up getting a Greenworks pole saw for less than $100 WITH a battery instead of $600 with Makita WITHOUT a battery. Is it as good? No, at some point, even fans of the platform look for cheaper alternatives.
Kentucky fan
Makita is my go to for corded grinders I weld for a living and have several. With that being said their cordless offerings have never intrigued me. I see some of their bigger cordless stuff on job sites but usually only concrete guys have them. Other than that is is all dewalt or Milwaukee I probably see more hilti than Makita honestly.
Jim Felt
My once first favorite cordless tool line from the 1990’s. Even though their by then near ancient NiCad stick batteries still functioned I gifted them all by the early 2000’s. RIP.
Travis
I feel the same way. Used a Makita cordless drill for an untold number of hours one summer installing water meters for a municipal upgrade project. Those drills were first class back then. Last cordless I bought from them was a small chainsaw about two years ago. That was the end for me.
Mike
Makita recently released a bunch of e rebate free tool, etc. promotions:
https://www.makitatools.com/promos
I am disappointed by Makita’s pullback here in the U.S., as a long time satisfied customer who increasingly struggles to find the value after successive rounds of price increases.
This YouTube video has a short discussion of Makita prices here vs the rest of the world, and discusses and links to a spreadsheet by “toolscientist” comparing them:
https://m.youtube.com/watch?v=YJ3nZAGz8KU
If Makita needed to trim bloated North American marketing and management departments in order to lower prices and offer promotions, that’s fine by me. Obviously marketing works on some level, though. While I understand broad concepts like volume pricing, etc., I couldn’t give any advice on how to increase sales AND profits here with all of the competition and changed brand loyalty compared to Makita North America’s heyday.
In country parts availability and warranty service are essential, though my guess is Makita is well above average in claims. They (like basically everyone else) don’t actually make any tools here.
They seem to have a more cautious and conservative strategy to adopting new technology and rolling out tools, mostly preferring to get things right, even if it means missing out on early adopter sales. I have always found them similar to Toyota in this regard.
How does the global decrease in Makita’s revenue and increase in profits compare with other brands? I know Covid saw record sales, and a drop after restricted forms of recreation opened back up. Just wondering if you can give industry wide context on revenue and profit trends from 2019-2024?
Stuart
I bought a Makita XGT cordless blower from Amazon Japan (direct) for less than it sold for here, AND it came with additional accessories. Some companies won’t service “grey market” products, and so I’ll cross that bridge if I ever need to.
In recent years, Makita’s North America segment has had a trend of either contributing very little to the company’s overall profits, or taking away from them, with few exceptions. For publicly traded companies, sales are important, and profits perhaps more so.
For the year ending March 31 2023, Makita corporate said “…our group’s consolidated financial results for the fiscal year set a new record high…” Why did a company with “new record high” sales revenue have to lay off hundreds of people in the USA?
I don’t think that’s it. Wouldn’t they want to test new tools or innovations in smaller markets?
Makita launched an XGT brad nailer 3 YEARS ago. https://14cyiuhvcgv.com/makita-40v-xgt-cordless-brad-nailer/%3C/a%3E It still hasn’t been released in the USA. Why not – to protect sales of the aging 18V model?
I’ve started to believe that Makita USA is under pressure to deliver sales AND profits, and that’s maybe why we don’t see the full selection of XGT cordless power tools here.
Their sales and profit disclosures over the years seem to suggest that the cost of sales in North America is high. Perhaps Makita USA no longer wants to participate in “intense competition” with brands like Dewalt and Milwaukee, and are now willing to sacrifice sales and growth to boost profits or reduce losses.
They’re going to have to choose strategies – boost sales, or boost profits. I think that, from October through April, they sought to boost profits, or rather reduce their losses. It’d be great if they can boost sales and profits, but it’s looking like those are mutually exclusive goals for the company to achieve, at least in the USA.
They didn’t trim “bloated North American marketing and management departments” with last summer’s job cuts – Makita USA laid off people company-wide, including at service centers and in other sales and support roles. They increased prices in the preceding two years, after also swapping 5Ah batteries for 4Ah in select kits.
They lowering the value of a number of tool kits without raising prices. Then they raised prices multiple times. Job cuts followed. Now, there’s been a noticeable decrease in seasonal and promotional visibility at their home center retailer partner, and the introduction of online rebates. Buy a blower, get a free hedge trimmer by mail. But I don’t want a trimmer, I want a free battery or a discount on the $439 kit price. Buy a chain saw kit, get an… impact driver? Buy a different chain saw kit, get a grass clipper. Buy a different model chain saw, get a Bluetooth speaker.
In the recent report, Makita says: “Currently, the stock price continues to trend at pre-COVID-19 levels,” suggesting that the pandemic’s effects on the tool industry are behind us.
Mike
I briefly tried to find some info on financials globally and in specific markets for other makers. I know you have covered this type of info in the past, hopefully you can do some updated posts in the future.
Mainly, I’d like to see some revenue and profit, and market share numbers and trends from the major brands globally and by major markets.
I’m assuming most readers are based in NA, but as we’re discussing whether Makita is declining in general (in sales, quality, innovation, etc.) or just strategically reducing North American market share, other market info could be valuable.
I’d also like to see how TTI’s rise here compares with the rest of the world. I remember a previous commenter stating he is seeing a rapid rise of Milwaukee, maybe it was in New Zealand? It’s no different sending conexes of teal vs red tools from China around the world. If Makita is relying on brand loyalty in other markets, they maybe in trouble. On the other hand, if they are much more price competitive there, this begs the question why? The data I referenced above seems to suggest the price increases are only really happening in NA.
I find the comments that Makita is dead or a shell, etc., confusing. I agree with the posts and comments detailing the decline in stores and on job sites in NA, but I don’t really think this is a reflection of tool quality and performance. Setting poor marketing and non competitive pricing aside, the decision to introduce XGT as non compatible with LXT undoubtedly cost market share. I really only see Metabo HPT as the clear winner in the voltage vs compatibility tradeoff (or lack thereof).
Milwaukee’s continued development of high powered/draw 18v tools steered me away from them, as I’m unwilling to accept the performance of their high draw 18v tools using their affordable conventional batteries. The newest Forge batteries seem to run much cooler, but I’m unwilling to pay the current price. Makita’s XGT batteries are just as expensive and not pouch, but leverage higher voltage.
Pro dealer based battery OPE from Stihl, Husky, Echo, etc. make both Forge and XGT systems look like great values. Metabo HPT, Flex and others seem to offer mechanic and carpentry performance just a step below top level Milwaukee and Makita, often for a fraction of the cost.
Personally, I think Makita is arguably the top tool maker, but certainly not the top tool seller. No one matches Milwaukee’s range, and they certainly have the quality and performance to claim they are both top maker and seller.
I recognize you must take any internet tool test with a grain of salt, as there are often complicated relationships behind the scenes. Makita and Milwaukee are pretty much always at or near the top. Dewalt sometimes takes top honors, especially when leveraging the 60v system. Flex, Metabo HPT and real Metabo, Bosch, and Hilti are usually in the running or sometimes lagging as also rans. The value proposition is typically good for Flex and Metabo HPT, Bosch hit or miss, and not so good for the real Metabo and Hilti. Lots of other brands make great tools, and even Hercules has some surprisingly good performers.
I’m finding the value proposition to be increasingly against Makita, but one can argue quality and performance costs money. I think top level Milwaukee pricing has actually gotten pretty high, and Dewalt’s 60v system has always been.
Milwaukee’s high powered tools will sort of work on their low end batteries but performance and longevity is sacrificed. How many customers know this? They do know they can (technically) ease into a brushed kit and then start adding Fuel tools. Not everyone needs high draw tools though.
The other is other side of the coin is the reality that customers can’t buy into entry level LXT and then add XGT. Reader comments here let you know how customers feel about that.
Makita’s prices are simply too high in NA. Their black Friday promos have sucked recently. They had good deals on low end LXT kits, but the market is flooded with that stuff, and a buy in relegates you to a budget legacy platform. I have no idea why Makita can’t sell their tools for the same price in NA and still make a profit.
Ben
I think you hit the nail on the head. In my own experience buying tools, XGT is a total failure. I should have been a Makita customer, I liked their tools and when I started framing and carpentry my boss used plenty of Makita tools that were good and held up on the jobsite. So when it was time to buy my own tools I started researching and was really interested in XGT and other higher voltage systems. But when I walked into the store guess what? The Makita XGT reciprocating saw cost nearly $700 Canadian for the tool, one battery and a charger. The Metabo HPT 36v one cost $250 for the same package plus they had a promotion at that store for another free battery. I had seen videos about Metabo HPT, the multivolt system, and a video proving that the MHPT recip was actually the most powerful on the market at that time. I walked out that day as a Metabo HPT customer and haven’t looked back since. And I don’t regret it at all. Buying XGT would have been a huge mistake. With the multivolt batteries I could just buy a $100 18v MHPT work light instead of a $300 40v XGT one. Oh and MHPT has a full lineup of cordless nailers which Makita has still failed to bring to market. It’s already terrible that XGT is not cross compatible with LXT, and that it’s super expensive, but when you completely fail to come out with a lineup of tools used and needed by, in all likelyhood, your number one customers i.e carpenters, that’s when I really start to question Makita as a company.
MikeK
I really like the lxt tools I have but, Makita had lost there mind with me pricing. The old multi tool went from just over $100 to $160! The new brushless model is so far up there and they have never brought it out in a special that I’ve seen. It’s like they have newer models that they don’t promote.
This along with only a couple of places, brick and morter, that sell them but have very little to choose from.
Stuart
You can’t simply look at “TTI’s rise,” because it’s a multi-faceted situation that spans quite a few years.
Milwaukee and Ryobi are completely different parts of the company, and they took very different paths to get to where they are today.
Higher pricing is an obstacle for Makita USA, but not an insurmountable one. It just increases the onus on marketing.
Eliot Truelove
“and sales decreased, centered mainly on home improvement stores”…
That is 100% a reference to Makitas comatose presence at Home Depot. I was there this evening. It’s very lackluster in the Makita department, whereas it’s looks like TTI through up in the front half of the store and in the tool section with Lime Green, Orange, and Red.
People can say what they want, but Home Depot is 100% prioritizing TTI products because of some sort of preferential treatment. You can argue a profit chicken and the egg scenario for Milwaukee and Ryobi (good sales makes people want them, and because people want and buy them they get featured more) but Ridgid is the outlier and Ridgid is just as much a presence as the other two, even moreseo than DeWalt.
The lack of Makita on job sites (except for older guys) is not for lack of decent tools, it’s for lack of effective marketing and presence. They just work. You wouldn’t know that if you walk through Home Depot though.
Dave
It’s hard to understand why no one has mentioned Makita pushing a totally new battery platform (40V) with no compatibility. This blows my mind. They learned nothing from Dewalt’s 40V non-compatible attempt that failed. Their miter saws are fantastic but simply outrageously higher than all their competition. All that said, it’s hard to imagine anyone competing with the brutal onslaught from Milwaukee dropping prices to sub-floor levels while still avoiding selling weekender disposable toys like some of Dewalt’s low-end stuff.
Tim D.
XGT is what killed it for me as a residential consumer. It’s so confusing that they waited til every other company had already released higher capacity options with backwards compatibility, and then said nah, screw that, we want to punish all people who are already bought in on our 18v platform.
At this point I’ve got a bunch of 18v stuff, and while I don’t think it’s going away immediately, I certainly don’t want to keep buying into that platform more.
Bonnie
Yep. I love all my Makita 18V tools… But I’ve ended up with a bunch of DeWalt because I got a few FlexVolt batteries and tools on sale (the lawnmower when I had a tiny suburban lawn) and the cross-compatibility is impossible to ignore.
Michael F
It’s weird that Milwaukee maintains both the M12 and M18 lines which also are not compatible but nobody makes this argument about that. Is it easier to accept when one battery type is a stick pack and the other type a slide pack? I was heavily invested in the M12/M18 line before I sold them all to buy LXT/XGT and it feels exactly the same to me. Most of my tools are LXT while my OPE is XGT. It works just fine. I have the freedom of knowing that if I need a high powered tool I can go 40V.
NoahL
M12 tools in general offer very low pricing, with very high performance and ratings. Not to mention the much smaller size and weight. The two different lines provide two different applications. I use my m12 stuff daily because it has plenty of power and it’s light weight, and gets in tight spots. I have the M18 for when I need the extra power and longer runtime. Makita’s 18 volt and 40 volt are the same size and do the same jobs. And both are much more expensive than Milwaukee’s top M18 fuel stuff.
I grew up with Makita. My dad got me a Makita drill with nicad battery when I started working in the 2000s.
He cannot afford new Makita tools so he now buys Ryobi when he needs a tool.
Michael F
This is a good point. The size differentiation between M12 and M18 is, maybe, a good reason to maintain two different lines. However, I personally don’t like stick batteries that insert into the handle of the tool (like the M12 and Bosch 12V lines) because I think the ergonomics of the tool suffers. I think LXT could make for a great “compact” line if Makita invested in new, high-output, compact LXT batteries like they did with the CXT line recently. At that point, everything you say about M12/M18 would be true for LXT/XGT.
MM
I think it comes down to how people view the different platforms. For a lot of people 12V tools are the “super compact” ones, so there’s little importance associated with battery cross-compatibility with larger tools, in fact that might even be detrimental. One of the reasons I use M12 is because of the stick pack style battery, I greatly prefer that style for working in tight spots, and that’s what I have 12V class tools for.
If you went from M12 and M18 to LXT and XGT then there’s nothing really to complain about in terms of battery compatibility, you went from 2 different systems to….2 different systems. But I think many others who are currently on other 12V and 18V systems would find themselves needing CXT, LXT, and XGT if they wanted to switch to Makita.
Stuart
M12 and M18 are not the same form factor.
LXT and XGT are the same form factor.
With LXT and XGT, I feel there’s too much overlap to the point of mutual exclusivity.
Take LXT and XGT tools and battery packs. Remove the labels and spray paint them. Do the same for M12 and M18.
Will the average person be able to tell the difference between a Makita 18V LXT impact driver with a 10-cell 18650 battery, and the 36V/40V Max XGT impact driver with a 10-cell 18650 battery? No.
What about Milwaukee M12 and M18? Most people will point to one being smaller and lighter than the other.
Repeat the same test with a Makita 12V Max CXT impact driver and an LXT or XGT tool. There’s more differentiation than in trying to compare LXT and XGT tools with batteries of the same size.
Put Makita CXT, LXT, and XGT, Milwaukee M12, and M18, and Dewalt 12V Max and 20V Max impact drivers on a table. Spray paint them and remove all branding. Ask 100 people group the tools by size or performance. All of the 12V Max tools will likely be grouped together, and both LXT and XGT tools will be grouped with M18 and 20V Max tools.
This exactly how XGT was designed – to have higher voltage batteries and motors in an 18V form factor.
Let’s say that Makita converted or updated every 18V tool over to XGT, and priced them the same. Would there be any reason to buy into the 18V system?
Mike
Compact batteries for drills, impacts, multi tools or if they had nailers. This is XGT’s biggest functional weakness, IMO. It’s not really a problem to use 10 cell packs, but so much nicer to carry the 5 cells on a belt, etc.
Munklepunk
What’s funny is I specifically use Makita subcompact for the smaller form factor, with the 2.0 batteries. The drill and impactor, I don’t use the subcompact impactor, are barely larger than the M12 counterparts, and more comfortable to me. Is you put the full size M12 batteries in they are actually larger and heavier than the Makita.
Bonnie
M12 managed to win the compact space early, when everyone had incompatible battery types. Then they kept expanding it so nobody really minds. Makita and Dewalt both basically abandoned their 10/12v lines that originally competed with M12.
Essentially the M12 proved itself to be valuable enough to warrant a separate tool line. XGT hasn’t done that, especially when DeWalt has a high-voltage line that’s fully backwards compatible, Milwaukee has high-output 18V tools, and plenty of people were happy enough with the 18×2 system Makita dropped in favor of XGT.
Yup, its me
I have a couple of the 18×2 tools, and I have no problems with them at all. I wish they could make a 40v to 18v adapter.
Porter
I think this nails it. As a makita using carpenter, I have zero desire to switch, and I’m really excited for their cordless framer.
I but I have absolutely zero- nay, negative desire to switch all my tools over to a 40v system. The 18v works great as is, and I’ve got like 12 5-6amp batteries.
It really is a product nobody asked for.
Stuart
You and few others argue about “preferential treatment” and blame brands like Milwaukee for Makita’s decline. I suppose they make for a convenient scapegoat.
Makita’s fell behind the competition, and their marketing efforts didn’t measure up. Interest in Makita products declined. This didn’t happen overnight.
Brands don’t need much marketing to sell popular tools, such as in the case of the Dewalt DCD771C2 cordless drill kit. Amazon reports that they sold more than 10K of these in the last month. https://www.amazon.com/dp/B00ET5VMTU/?tag=toolguyd-20
Brands need good marketing to sell good tools; good tools will not sell themselves.
Brands need great marketing to sell less compelling tools.
The XGT system is modern, but expensive and limited in breadth. The 18V system is aging.
How did this happen? Interest in Makita has waned. How has the company adapted?
Last holiday season, limited promotional space was given to full-priced tools.
In 2022, they had a SubCompact circular saw for $139, advertised as being on sale from $159. In 2023, it took up holiday season promotional space and was full-priced at $189. A few steps away, a competing brushless saw was $199 with 2 batteries and a charger.
Another Makita holiday deal could have worked better other times of the year – buy a cordless grinder at $189 or $199, get a free 1-battery and charger starter kit.
However, other brands’ deals were better – buy a 2-battery starter kit for $199, get a free brushless grinder.
A few days into December, and the Makita displays were still full.
With everything I’ve seen, I don’t buy it that any other party is to blame for the situation they found themselves in, not for one second.
Let me ask you – what have they done with Outdoor Adventure? Are the tools in REI stores? Sporting goods stores? Cabela’s? Bass Pro Shops?
They had what could have been a good idea, and fumbled it, the same as they did with their own “preferential treatment” at Home Depot that the company was sued for.
Michael F
Stuart, you make this argument a lot, and I do completely agree with you. Makita USA has shown that they don’t know how to market or promote power tools in North America. However, as I’ve said before, I’ve known many TTI employees from tool reps to product managers and was given some inside information into the relationship between TTI and Home Depot. I haven’t mentioned specifics on this site because I don’t think it’s appropriate, I don’t want to gossip, and I don’t want to get identified. However, from what I’ve seen, I do believe the relationship between TTI and Home Depot could be responsible for an additional headwind against Makita. Is it Makita’s only problem in NA? Far from it, and Makita could still compete successfully against it. I’m not even sure I’d say that TTI and HD are doing anything “wrong.” However, it’s undoubtedly a HIGHLY competitive environment for any other power tool brand than Ryobi, Milwaukee, and Rigid at Home Depot.
Rog
I’ve made this comment before also. It is obvious–even without insider info–that TTI and HD have a preferred relationship at the expense of other brands. I know Stuart and others may say “it’s because TTI sells what the consumers want” but I don’t think its quite that simple. I think there are politics that pepper the situation and Makita either can’t, won’t or doesn’t know how to play the game.
BHS
Marketing dept. doesn’t know how to. Work marketing I’ve ever seen
Michael F
I’d actually say it falls into the latter: “Makita either can’t, won’t or doesn’t know how to play the game.” Nothing could be more true. The real rub to how the TTIHD relationship makes Ryobi, Rigid, and Milwaukee so competitive is that they are so tightly intertwined that the good of one is extremely dependent on the good of the other. Yes, Home Depot could survive without selling a single power tool – but would they want to? TTI is almost entirely dependent on Home Depot. They can only sell their Ryobi line at Home Depot as far as I’m aware. They also sell the majority of Milwaukee and Rigid tools at Home Depot.
On the other hand, Home Depot utilizes TTI as their “in house” engineering department for their “house brand” in Rigid. TTI actively engages with Home Depot in the product development phases of Rigid brand tools. All of this means that they do much more than just business transactions together – they actively plan the business direction and strategy of their tool lines together. This is a type of relationship that SBD/DeWalt and Makita are completely left out of and I think it probably shows in the sales numbers.
Could Makita be more competitive if Home Depot were helping them understand which of their tools weren’t selling, why they weren’t selling, and what kind of tools customers are looking for? I’d say yes.
However, and I want to make this clear, Home Depot would likely engage with Makita in this way if Makita actually made the effort to do so. Makita needs to look at Home Depot as the customer. “The customer is always right” and Makita needs to be trying to delight their customer as TTI does. TTI puts a *lot* of effort into making sure Home Depot is happy with moving TTI products all the way down to reps making sure that the displays for Lime/Orange/Red tools are groomed and have charged batteries. TTI reps put on product demonstrations regularly at Home Depot for shoppers with TTI tools. Couldn’t Makita also do these things if they wanted? I’m pretty sure Home Depot wouldn’t say no.
Long story short: Home Depot and TTI have a *very* close relationship. I also don’t think it would prohibit Makita from having a similar relationship with Home Depot if they put in the effort.
Stuart
Even if it’s fair, that excuse can only be used to a limit.
Why isn’t Makita “Outdoor Adventure” at REI, Cabela’s, Bass Pro Shops, or other such stores? They’re not even online!!
MSC, an industrial supplier, often has Milwaukee and Dewalt products in their sales flyers. Where’s Makita?
Rockler sells Makita’s 18V X2 track saw, but they don’t seem to sell guide rails, accessories beyond the track clamps, or the XGT tool in any version.
It doesn’t look like Rockler has any of Makita’s XGT tools.
You know how Festool has special Systainer tool bundles on occasion? Why can’t Makita try the same?
Is all that “TTI’s fault” too?
Michael F
Agreed on all counts. Further, as I explained in a comment above, I believe that Makita could have a much better relationship with Home Depot if they put in the effort. What I’m saying is that Makita is either unwilling or incapable of competing with TTI on a *relationship* level at Home Depot, which reflects in their sales.
Perry
Stuart, I would also say that makita quality is not what it used to be. I’ve had several saws and impact drivers fail on me recently, all of which were purchased in the past year or so. After being in the makita cordless lineup for over 2 decades as a pro, I’m phasing them out for MHPT.
Kingsley
I love the they have a cordless jobsite microwave and jobsite TV/radio.
I’d like to see other wacky cordless products, maybe a toaster?
They’re ubiquitous in Japan, I only saw Makita on a recent visit.
Even the cleaners in hotels use Makita cordless vacs.
Jay
We are a family owned brick and mortar OPE retailer. We are friends with a few others. The problem with Makita started a couple of years ago, they aren’t doing anything to help us grow, reps don’t contact us, we get put on the back burner. We hear this from other dealers as well. We also aren’t listed on their website, but yet we are the only representative of them in a 75 mile radius. This doesn’t help their sales one bit. We questioned them about it and we were told the rep just had not got around to it. We’ve been a dealer since 2020. Gee I have no idea why their sales are dropping. Our rep did “retire” in March, so we’ll see.
Stuart
Unfortunately, you’re not the first I’ve heard complain about this.
SamR
Makita is thinking like Toyota!
They want to live on a good Japanese reputation without explaining to the public why someone would pay that much and why not offer good promotions! Makita cannot think like Toyota because no resale values would support such thinking.
On top of that! Not enough R&D is made to develop unique tools to push new customers to their battery platform.
It is a sticky situation; there is no way out without spending a lot of money on R&D and promotions, and as always, suits will not accept such a solution.
Mike
Maybe it’s just the Japanese connection, but I’ve always associated the two.
I don’t think resale value is as important for power tools vs autos. The long term value proposition varies similarly though. People who can afford to lease or constantly trade in autos probably practically give away their old power tools. If you make your living with power tools, the constant incremental improvements often pay off in efficiency gains. Tools may be as likely to be dropped, misused by apprentices or stolen, as worn out.
Cars and power tools have become semi disposable for similar and different reasons. Why pay top dollar when there are very good performing options that can be constantly replaced when I want that new feature, latest tech or new car smell?
To me, Toyota and Makita have historically had high quality, durability and a great balance of practical performance. The Nicad drills from the 80’s that still work might be compared to the Hiluxes still cruising over third world “roads”. Many mechanics would tell you if you plan to keep your car for a while, a Toyota or Honda will be the best value. I think several other makers offer durable, high performance tools, and the short term and long term value probably beats Makita’s current pricing.
Toyota is the largest auto maker in the world. I’m not sure how much they spend on marketing here or around the world. Word of mouth and repeat customers undoubtedly have fueled their success. Steady, cautious improvement means their products typically perform well and last a long time. I’m not sure whether Makita no longer holds the same advantage over the competition, the industries are much different or superior marketing is the difference?
Bonnie
I think the big difference is that a 40 year old Toyota truck still does it’s job quite well today. I have one and in many ways it’s even more useful now that nobody in North America even sells a small truck. But my 30 and 20 year old Makita drills are completely obsolete. Sure they still work, but they’re effectively useless compared to even a 10 year old cordless drill or impact driver. The power tool industry is still in a period of rapid innovation where longevity doesn’t necessarily hold as much value.
Jason
Resale value is a thing in the US and Canda. Not so much in a lot of the rest of the world.
Paul
It seems strange to me that they don’t sell more. They feel so much better to use than all the other brands I’ve tried. Dewalt is fine. Milwaukee is powerful but rough. Makita just feels better.
I have noticed that their trimmers seem to be consistently adjusted wrong in the stores. I’ve fixed the handle position a few times.
Perry
That’s why I stayed with makita for so long, because of the ergonomics and fine motor control. Unfortunately I’ve noticed a drop in the dependability of their tools amd I’m finally moving on.
Michael F
Couldn’t agree more. I’ve heavily used Milwaukee for years and have a fair bit of experience with DeWalt as well. Makita just absolutely feels like a more premium tool compared to the other brands.
xu lu
IIRC the US$ /Japanese yen depreciated about 20 pct +/- on average year on year explaining modt of the decrease above. The missing piece is price increases arising from inflation. As an example, if prices rose 5pct, then volume was off 5 pct. While this brand grows less relevant, its volume declines cant be close to as stated in the post.
dale Clark
I do admire the Metabo HPT/Hikoki Multivolt system that works on both 36v and most 18 volt tools. There’s just so many low cost, decent quality tools for the average homeowner out there. Ryobi level is more than enough for majority of home owners. Milwaukee has done the best job promoting to pros and that trickles down to the non pro’s as well.
Michael F
I see a lot of people comparing Makita to Toyota. Maybe there’s something to that because I really enjoy my Makita tools and have owned multiple Toyotas, including every generation of 4Runner since a 1996 3rd gen.
I’m commenting multiple times on every Makita post, so it’s probably clear at this point I’m a Makita fan. However, I really think that Makita needs to make one of 2 decisions at this point: invest heavily into R&D, marketing, and promotion in the NA market or withdrawal from the NA market. There really are no other realistic choices for the brand in NA. Unfortunately, what they’re doing reminds me of what private equity firms do: milk the brand for every penny as it declines.
Makita’s seeming insistence on increased profits for the North American region (and not increased sales) would seem to point to this. How much of their sales at this point are only from people who have already bought into the LXT line and need to replace batteries, etc.? How much of their sales comes from “new” Makita users? I’d imagine most of their sales are in the former camp and much less in the latter. This means that, over time, the sales will continue to decrease as users jump ship into other, fresher, power tool lines and no longer need batteries, new tools, and accessories.
All this is to say that Makita can increase profit in the short term at the expense of sales in the long term. Is that really the right way to manage a brand? I’m not convinced at all that it is. I sometimes wonder if Makita thinks they can become a low volume, high margin brand like Festool. If they’re counting on it to stay relevant, I think they’re going to be extremely disappointed.
If I were put in charge of Makita North America tomorrow with a blank check from the Makita mothership, I would immediately fire the entire marketing department. I’d replace them with new marketing employees that have fresh ideas on how to change the brand image in the US especially. I’d immediately start running promotions (specifically around free or extra batteries with tools) and wouldn’t stop running them until I saw sales increase. Finally, I’d do whatever it took to get increased visibility at Home Depot and ensure that Makita was participating, with competitive pricing, in every single Home Depot seasonal sale.
If I were in charge of Makita as a whole (and not just North America), I’d invest whatever it takes to not lose the North American market. This includes investing heavily into the Makita modular toolbox system and dedicating whatever resources necessary to launching and maintaining the system successfully. It includes designing new, high-output, LXT batteries (especially compact batteries). Finally, it includes ensuring that products released globally (like the “F” line of high-output XGT batteries) make it to North America in a timely fashion.
Anyway, that’s just my constructive criticism of a brand that I truly enjoy and I really hope that they can turn the ship around in North America.
fred
Home Depot might just be the key for small power tool sales. With their huge market share what they carry likely dominate what their customers buy. Lowes is the also ran – but I don’t recall them ever carrying Makita (in-store anyway). As others have said HD customers get barraged with offerings form TTI (Milwaukee) – and HD house brands (Ryobi and Ridgid). HD probably makes room for Dewalt – for a combination of reasons like customer demand and their need to carry other SBD-produced items. Makita was always the weak sister at HD – and the situation has certainly gotten worse – with seemingly fewer Makita items on display in the last few years.
MM
I think Makita’s situation is rather ironic: I considered them the clear leader back in the Ni-Cd days, they were the first to make truly professional quality tools back then. But now it is the battery technology which is holding them back rather than making them the clear leader. It’s two things really: the lack of larger capacity and higher output batteries for LXT, and the lack of compact batteries for XGT. Those two things combined really force more serious users into having to adopt both platforms: you need LXT for the compact tools & many things that simply don’t exist on XGT, and then you need XGT for the more power hungry requirements that are impractical with LXT’s current batteries.
In a way it reminds me of Sears and Craftsman. Sears got big by leveraging mail-order many many years ago. But they didn’t adapt well enough to the latest form of mail order: internet shopping.
On top of that there’s the problem that the LXT line has a lot of Dinosaurs in it–tools that may have been fine in their day but today desperately need updating. Consider the LXT right-angle impact driver. It costs over $200 for the bare tool, meanwhile the 12V Skil absolutely spanks it when it comes to performance and that only costs $99 for the whole kit with battery and charger.
In my opinion there’s no problem with the quality of Makita’s tools. But there’s this strange situation where it feels like LXT is on the way out, but at the same time is essential because XGT doesn’t have a full line of tools yet. And even if and when XGT does have a full line of tools, will they ever have batteries small enough to make compact 40v tools practical?
In my opinion Makita needs to decide what they’re going to to with LXT and then commit to that course of action. If the idea is to phase it out and make XGT its replacement then they need to flesh out the XGT line and come up with some way of making more compact batteries so it becomes practical for smaller tools. Coming up with an adapter that allowed LXT tools to run on XGT batteries would help ease the transition since customers could buy new XGT tools and use those batteries with their existing LXT. If, on the other hand, the idea is to keep LXT around and XGT is not supposed to be a replacement for it, then they need larger and more powerful LXT batteries, and they need to update older products in the line as needed.
LKeaton
Another long-time Makita user checking in who is actively moving away.
It’s deeply embarrassing that Ryobi put out a framing nailer before Makita. (of which there is still no release date for the Makita).
Metabo HPT/Hikoki is carrying the banner for thoughtful design and ergonomics IMO.
Perry
Iirc, Makita did have a framing nailer. 2 actually, one was an 18v and another was a 7.2/gas like a paslode. Both were failures and didn’t make it to the u.s.
I did see them in Canada for a short time but then disappeared.
Alan Dechovitz
Disappointed to read. I build furniture and cabinets and have been a loyal Bosch customer. However, seeing all the innovative stuff from Festool. I was watching Makita hoping they’d compete at a better price point. Sounds like that isn’t happening. Dewalt and Milwaukee seem to focus on building trades. Scratching my head.
Josh
It’s a bit of everything:
1. Why are they making 20 different impacts?
2. Where’s the framing nailer? Table saw?
3. How long does it take for new products to be released to the rest of world?
4. Price hikes in the last 12 months
They push away people with their decisions. When a tool breaks, It’s just easier/cheaper to grab something that’s on shelf. Don’t forget to grab your free battery. (Yes I’m on all three platforms).
ITCD
I’m curious if this might be linked to some extent to their crazy price hikes they implemented a while back. I know for me personally it made me slow my roll on building out my ecosystem. Things like a decade-old high-torque impact shooting up to above their competitors’ latest offerings on price, while being below them on performance (see: decade old design) makes it hard to justify an expansion and especially hard to justify if you aren’t already in the ecosystem.
Stuart
Given everything that has happened in the past few years, I see the price hikes as part of a pattern of cost reduction, which led to a lot of layoffs last year.
With Makita’s segment performance in North America, it seems reasonable to presume there was pressure to improve profitability or at least reduce losses.
Mike
What impact are you referring to? Impact drivers are a Makita strength and aren’t really meant to have high torque. The second gen XGT seems to be a step backwards. The LXT TD-173 seems great, but is not available here, and I wouldn’t be interested in an XGT version because of the lack of compact batteries as others have mentioned.
The XGT midsize impact wrench is near the top and their 3/4″ full size is apparently the strongest in its class. I know they recently introduced an uninspiring LXT, maybe that’s it?
To your main point, they are all (too) spendy.
Stuart
This one?
https://14cyiuhvcgv.com/makita-18v-impact-wrench-xwt19/%3C/a%3E%3C/p%3E
The XGT impact driver you’re referring to isn’t “second gen.” I wouldn’t call it a step backwards either – it’s a cheaper model with less features and lower torque.
ITCD
Oh I was talking about the impact wrenches. I have their latest one, the XWT19. They had been camping on the XWT08 for quite some time while the rest of the market moved on in trying to push the envelope further. The 19 came out and it’s practically the 08 all over again, but with some updates and a little trimming in weight and size (and a little on listed specs too).
It’s surprising to me because the automotive market is one they don’t touch much and is a definite direction they could be expanding into better. Techs seem to crave higher output and will gravitate to the biggest baddest ones on the market (even if they dont actually NEED the power necessarily, but if theyre flat rate any and every edge to trim the time helps), whether it’s the popular Milwaukee stuff in the electric space or heavy hitters from IR or the chart-topping Matco for pneumatic.
They finally dipped their toe in with an electric ratchet and the concept of interchangeable anvils rather than trying to hit you up for double the money like Milwaukee does was awesome, but there is room for improvement on that as well, and having the battery have to hang off the back was a downside. They also missed an opportunity to beat Milwaukee to the punch when their ratchet design could totally have done what the Insider does with low-pro and pass-thru sockets which, if combined with better power, could have been a triple threat of two drive anvils plus a pass-thru option all in one tool at one price.
Instead we get the same tools but in an olive green color. Not even the fun colors like they offer in their domestic market.
BigTimeTommy
Really wish Makita would stop half-assing it in North America. For the most part almost every Japanese tool I’ve had has been higher quality and a better value than any comparable “American” or “German” tool I’ve owned. All my old corded Makita tools are excellent, but nothing makes me want to buy the cordless tools they produce for export. Less competition from companies like Makita and Bosch will only lead to more aggressive anti-consumerist practices from companies like Milwaukee and DeWalt.
Greg
It doesn’t help that the entire rest of the world seems to get Makita’s new offerings a year or two before they come to the US, if they come here at all. It really seems like Makita doesn’t want this market segment here.
BigTimeTommy
Probably because Americans don’t appreciate thoughtful design. Japanese companies seem like they’d rather take their ball and go home rather than appeal to the American consumer. I kind of respect it in a way.
Kompahko
I used to like m18, but their miter saw fences are not flat and I got sick of cutting 44.6 degree to get a tight miter. I’m supper happy with my xgt miter saw. Our m18 9 inch power cutter also overheats batteries like crazy, dewalt and makita lxt don’t do that as far as i know.
I also run a lot of metabo Hpt 36v, it’s nice but higher draw tools overheat the toola or batteries unlike xgt which is more robust in that regard.
People complain a lot about the lack of retrocompability with lxt and it does sucks a lot. But imo, the problem is that makita takes waaaay too long to release small tools on the xgt platform (multi-tool, drywall tools) and they still lack some big toola like a table saw.
The xgt customer is someone like me who is gradually replacing broken tools from other brands because right now, XGT cannot stand on it’s own
Chip
Full disclosure I only started using Makita because of the x2 promotions with 4 batteries,have added to this with other tools.
I also run 11 different platforms of voltage and brands.
X2 (36v) is/was a great platform, it competes fairly well with m18 high draw and Dewalt flexvolt.
Dewalt and Milwaukee struggle with batteries lasting, while Makita’s strategy was lower capacity and lower amp draw batteries.
Lighting and cutting require either storage or amperage, drilling and driving less so.
As a daily user of tripod lights for an example, I prefer a 9 or 12 for a full day use…this could have been fixed for Makita by allowing 2 batteries to be attached.
Ergonomics which Makita was famous for,but definitely not any longer.
I bought the latest BL omt and jigsaw. The multi-tool is short,but it is the largest barrel and has the fattest tail and head anywhere on the market.
It is the quietest and less vibration then a Festool, but it doesn’t fit into tight spaces.
I use a noiser and more vibration m12 fuel which cuts as fast,but it actually fits into places the Makita doesn’t.
Barrel grip jigsaw is very large in every way possible, but worse than that is the power button.
Power button ah my nemesis, and my largest frustration with Makita.
Multi tool doesn’t have it,but jigsaw,router,3 chainsaws and blower do.
For intermittent use, it is aggravation personified.
The largest reason is availability and lineup.
The biggest box store,the largest national hardware chain,and every P/E HVAC store sells Milwaukee…and some will also sell Dewalt.
Milwaukee and Dewalt have many tools and batteries that fail more often,not as ergonomic .
But both serve landscaping, mechanical, auto,construction and woodworking.
Like Bosch if they offered their superior batteries, lineup in more places.
They could sell more, to then develop more.
From 2000-2018 Dewalt dominated in availability everywhere, and also had the best lineup.
Milwaukee has taken that over currently.
If toughbuilt and Flex can outlast their disastrous contract with Lowes the may survive.
CFF
I am not a contractor, but heavy in home DIY, and spent nearly 15 years listening to contractors & homeowners at HD.
My observation as early as 2020 was that contractors still purchased “quality” brands for themselves, but were buying Ryobi for their day workers (the ones likely to mistreat, drop it lose them).
Advice to homeowners & contractors was the same: You buy into a battery system, and then get tools as needed that use that battery.
It helps that my old blue Ryobi Ni-Cad recip saw is still going, since Ryobi had the foresight to make their 18V lithium batteries compatible.
Batteries were always (in HD-land, at least) the major purchase. More tools, more batteries. Bad battery line, you’ll never be happy. Multiple battery lines, multiple chargers, multiple headaches.
No, I’ve never been a contractor, but I worked with and respected their expertise. And it was always “the batteries”.
George
I would like to see Makita offer their tools to more retailers. My only choice with inventory on hand is Home Depot. I’m near Kansas city and no one stocks their line. I have some 20 yr old 18 volt drills and a bunch of their woodworking tools. If Menards handled their line they would sell much better.
Jammity
They can’t blame me! I’ve had both oars in the water pulling all year for XGT.
Rod
Cordless hand tools are all about power to weight ratio and ergonomics. Makita choosing the heavy and bulky 40v line hand tools over the 18v line is a mistake. They need to improve the 18v lxt line and its battery platform and stop wasting resources on so many redundant LXT tools. The 12volt line and Compact 18 volt tools dont make sense.
Makita needs to focus… Fewer tools , but better ones, you dont need 5 similar lxt drills and 5 similar impacts.. Development three.
profit is in accessories so push your brand.
Makita inovation is/was ahead of everyone , but they dont capitalize on it.
Tool case/bag design is lacking and could be a win. The previous 12volt line was compact and fit in your tool belt.
Should have pushed the previous 12volt line as Lady Makita line?
MAKITA
One System..
Builds a deck, transforms a yard and repairs your car, truck, motorcycle or boat.
MAKITA
Abe Unruh
Bring back the makita dolmar chainsaw and I’d buy one
eddiesky
I see there are rabid Makita fans and rabid (insert brand) fans here.
Makita marketing fucked up. There is a market target of folks they missed: influencial woodworking females on Youtube and Tiktok. I know others that would love a purple, olive or pink Makita set, which you can get from Japan.
They also fucked up with the confusing XGT and LXT batteries. Atleast with, others like DeWalt and Milwaukee, 20V and Atom batteries are for different tools and have obvious sizes, as well as M12 and M18 Fuel batteries. No confusion there.
Lawn implements: they are competing with established markets like EGO, Greenworx and commercial to prosumer brands like Echo, Stihl, Husq. Dewalt got into it and gotta say, their stuff blows (pun on the leaf blower) but really, their chainsaw is junk. And now, we are hearing their mitersaws are junk like never before.
Makita needs to get to the woodworkers, the home renovators. I watch a barndo builder and he uses Makita’s for building, as well as Milwaukee. See? You don’t need to be locked into a brand battery. You need to show, ours is lighter, lasts longer, and just works.
(I’m stung but use Makita, but they released their cordless tracksaw just after I got their corded model. And the cost was too high, but less than Festool. Now, I’m looking at a Milwaukee track saw-just the saw, as I now have some M18 battery tools to share with. And it can use Makita track because its compatible!
Steve
Your story is somewhat misleading as yes, their sales were down, but their profitability in 2023 was -$912M, vs 2024 -$126M. Of course, the -$126M is better and I’m not sure what is driving these big losses, but it appears they are going in the right direction. Sales don’t matter if you can’t make money at it. Hopefully, they can build their sales up again in NA and get on the + side of the ledger. I was all in with Makita a number of years ago, but have since moved on to Big Red. Just not enough innovation and tools I wanted, were offered by others…
Stuart
What part of price hikes and job cuts in the USA, lower sales, and negative profits (losses) in North America are signs that Makita’s business segment HERE is “going in the right direction?”
You say that you were a Makita fan but switched over to Milwaukee because Makita was no longer meeting your needs as a tool user.
Would you do the same today? Would you buy into their cordless platforms today despite the apparent pullback on sales and promotions?
How you would answer this is a true sign whether the company is moving in the right direction in North America.
SteveP
I’m in HD and Lowe’s several times a week yet was unaware Makita even had the olive-green line. I stopped using their tools after a bad experience with no warranty on the original 18V lithium “dead overnight” batteries. It sounds like I am not the only one disillusioned
I had understood that Makita dealers made accommodations for “pro customers” that DIYers like myself didn’t get, but perhaps that was also costing them money. Maybe if the product was better, better supported and better value, but I’m not a business expert…
Extrapolating from the “sell less to lose less” theory. I suppose just pulling out of the US market entirely makes the most sense?
Damon
This is pretty accurate. People are not looking at these companies as a whole, rather as just the individual parts (TTI is looked at as mainly just Milwaukee and Ryobi, SBD is just as Dewalt). Makita’s main competitors are backed by much larger, and better funded entities. TTI is not a tool company at it’s core, but rather an Investment company. With them owning Milwaukee, Ryobi, Hoover, Stiletto, Empire and many more. SBD while not an Invest company, still has other brands to fall back onto as well (Dewalt, Porter Cable, Black & Decker, etc). Both have bought out other brands that have been around for a while and have been able to use the expertise they had to help with R&D. Both also understand that in order to attract people into their brand, they will have to sacrifice margins/profits for some items (similar to Loss Leaders at grocery stores). They know that by getting people in on those first couple of tools, they have them hooked, unless they are willing to do a pricing swap to convert to a new brand. They are then also able to use these brands to help bundle the accessories as well (bought a Dewalt recip? Buy some Dewalt/lenox recip blades!)
Makita is the only straight tool manufacturer of the “Big Three”. They don’t have other brands/companies to help subsidize them them in times of trouble, forcing them to play it safe and pay more attention to their margins/profits than the other guys. But Makita’s true problem in my opinion is that they do separate themselves at a corporate level. Their NA branch is beholden to the main Japanese branch, everything at the end of the day has to be run back through them, whether that is sales events, new tool demos for vendors, hell even just getting a rep to stop in takes some effort. Their cutting down on sales reps goes back a fair ways back to pre-COVID, probably around 2018-19 I’d say.
This micromanaging affects thing as simple as their own Promo’s. Best example would be for their XGT tools. They have had a promo for a free battery for their XGT tools basically since they first came out, but it is not put on by their vendors, it has to go the Makita themselves, so instead of being able to leave the store with your tool and battery and get right to work, it can end up taking +5 weeks sometimes, just due to the amount of people who have to check, double check and then sign off of it. This amount of busy work can make them seem inadvertently inadequate sometimes. I mean, would you really want to invest more money into a new system that takes so long long to get something as simple as a single battery to you? That should be something the Vendor should be able to do at the time of purchase, as it helps build confidence in the tool/platform and subtly shows that if you have the stock on hand, you are invested in the success of it.
A lot of their tools are also no longer made in Japan, but are still priced like they are. A good portion of Makita’s rep is built on these older Japanese built tools, but recently, they have been changing a lot of their production for NA tool markets to Chinese built since they normally have faster turnaround and the capacity to produce in bulk. This isn’t to say that you can’t get good quality Chinese tools as long as the manufacturer is willing to pay for the quality control of it, but since so many companies don’t bother, most NA user seem to believe its a stigma to have Chinese built tools.
This leads to my next point of what Makita is doing wrong, not focusing their R&D properly. A lot of the new stuff that they’ve come out with for the 18V side make no sense for them. Things like their “lifestyle” tools (battery powered cooler, a microwave, even a coffee maker, which isn’t even the first one they made). All interesting novelty tools, but nothing that is really needed and most are stupidly expensive, so not worth buying even for fun. The few tools that make sense are years behind the others. For example, both Milwaukee and Dewalt came out with their Grease Guns around 2013/14, whereas Makita was almost a full 7 years after, only showing up in 2021. They are so far behind and trying to play catch up, that they are losing customers trying by trying to get into markets they were never in before.
Makita’s main market as pointed out by multiple people has been the construction/carpentry guys for years. They are loosing them to Dewalt because Dewalt’s prices are killing theirs, and on the Outdoor Power Equipment (OPE), they are loosing ground to Milwaukee. Sure their OPE tends to be more powerful and performs well, with the switch to XGT, a Line Trimmer with interchangeable head costs almost $200 more, but with less versatility for the battery.
Could rant for longer on this, but have to cut it short for today
Stuart
That’s not exactly fair to say.
Stanley Black & Decker has been divesting from businesses not inherently part of the tool and storage product categories. They do have broad appliances in Black & Decker, but is that much different from Makita offering cordless tea kettles?
Makita has additional focuses for their core markets, such as vacuum solutions for commercial and hospitality settings. It’s a broad brand with one name, rather than being a broad brand with different names.
With companies like TTI, operations tend to be separate and discrete.
Pepsi is a beverage company. Quaker makes oats. Tostito makes chips. Rold Gold makes pretzels. Pepsi Co has broad brand offerings, and for the most part they’re discrete.
Benjamin Moore is a Berkshire Hathaway company. They’re still a paint company.
Bosch… now that’s a very diverse company. But their tool business appears to be highly segregated from their others.
Corporate ownership or affiliations don’t alter the fundamental nature of tool companies.
Here’s a support video on how to change the built-in battery on their red, white, and pink handheld vacuums – https://www.youtube.com/watch?v=IBBCeg7Dx_U . With pink handheld vacuums, is Makita really different from a company like Stanley Black & Decker? They have products for different user types and across a range of price points, but use the same brand name across all of them. That doesn’t make them “the only straight tool manufacturer” compared to competitors.
It seems their business segments are discrete too, as if they were different companies. The brand had record-high sales last year, but still laid off workers in the USA.
SBD and TTI are tool companies. If you look at their public financial disclosures, the breakdowns make that clear. Bosch, I’d say, has diverse businesses they could potentially lean on when tool sales are down.
Their lifestyle tools appear to be popular in their core markets. How many different lifestyle products do they offer? They wouldn’t do that if the category was losing money.
In the USA, many lamented that we couldn’t get those products here. They started selling some here. It seems they were popular enough (maybe?) to prompt an entire “Outdoor Adventure” colorway.
Makita has long-emphasized their OPE products. They also have equipment at lower price points, but we’ve never seen them in the USA, presumably because it would dilute the brand’s positioning as a brand for pro users.