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Posted February 4, 2025

Power tools next in the connectivity jigsaw

In construction, there is yet to be a concerted effort to connect the power tools segment, leaving a blind spot that could cost the segment millions of dollars. This should be the next big gap to be plugged in off-highway connectivity, reports Trackunit.


by Richard Haggarty

There are many devices on the job site that should never end up in the wrong hands and among these are handheld tools. The industry has made big strides connecting the largest, most expensive machines on job sites like excavators. Handheld tools, those everyday essentials like drills, powered saws, and hammers, are still mostly operating in the connectivity dark.

As with large equipment and machines, the reduction in loss, damage or theft of hand tools would save tens of millions per year, not only in replacement cost but also in safety, productivity and legal disputes. Moreover, the power tool segment can catch up as it is easier than ever to implement the necessary solutions.

While the stakes are high, power tool manufacturers have little visibility into how handheld tools are used or misused once they leave the factory. Power tool manufacturers can produce millions of units a year yet have no idea what happens to them after they’re shipped. There’s no insight into how the tools perform on-site, whether they’re maintained properly or if they pose a safety risk.

If a defect in a tool causes an accident, the consequences can be severe resulting in injuries, lawsuits, insurance claims and even recalls. Those are just the immediate impacts; for project owners and contractors, a single tool-related incident can lead to budget overruns, delayed delivery schedules and excessive finger-pointing.

Connected power tools could prevent an accident before it happens
Despite efforts of even the most stringent quality processes and the strict implementation of training programs, the record shows handheld power tools are a dominant factor in more than 39,000 injuries annually in the US. It’s not like this in the heavy equipment market. Large machines are connected, monitored and maintained with precision, ensuring their safety and performance throughout their lifecycle. Historically, power tools have been considered too small or too cheap to bother connecting. If a few go missing or break, it’s the cost of doing business. Project owners budget for this, assuming some loss will happen.

That thinking doesn’t hold up anymore. Today, the cost of technology, such as GPS, wireless, and cellular connectivity has dropped significantly. It’s no longer prohibitively expensive to track and monitor even small, handheld tools.

When tools are connected, contractors can track where they are, monitor how they’re being used and predict when they’ll need maintenance. This eliminates the need to overorder to replace lost or broken tools as well as reducing downtime caused by unexpected failures. For project owners and contractors, it’s a game-changer.

In the rare event that a product is actually faulty, the manufacturer should discover this in weeks out in the market utilizing data insights from sites, rather than many months as anecdotal, aggregated evidence gradually builds into an overwhelming case. Technology’s capability to quickly identify an error or fault dramatically cuts the learning curve, which should prevent a bad outcome becoming a terrible one.

When safety is added to the mix, the stakes get even higher. A digitally connected power tool that sends out an alert when it’s malfunctioning or nearing the end of its lifecycle could prevent an accident before it happens.

The technology is ready and the lower costs make sense. Manufacturers must take advantage of the benefit of power tool connectivity. Many haven’t fully embraced the idea of connected tools, this may be because it’s a big shift in how they think about their products.

For decades, the manufacturers have focused on producing high-quality, durable equipment. Connectivity requires a different mindset, one that views power tools not just as standalone products, but as part of a larger, integrated ecosystem. Some manufacturers, like Hilti, are already ahead of the curve with connected solutions. Others are just beginning to explore the possibilities.

Contractors and project owners are starting to demand smarter, safer tools and that pressure will only increase. When tools are connected, contractors can monitor how they’re being used. As government and state-mandated projects require stricter safety and environmental compliance, connectivity will become a necessity.

The drive for connected tools won’t just come from the manufacturers, it will come from the contractors and project owners who rely on them. They are under constant pressure to deliver on time, on budget and with minimal risk. For them, the ability to track tools, ensure safety and avoid costly overruns isn’t optional, it’s critical.

A connected power tool that sends out an alert when it’s malfunctioning or nearing the end of its lifecycle could prevent an accident before it happens. That’s not just good business; it’s common sense. In such an environment, OEMs that embrace connectivity will gain a competitive edge. Just as contractors use their safety records to win contracts, OEMs that can offer connected solutions will be better positioned to partner with top-tier players. It’s an opportunity to stand out in a crowded market and build stronger, more valuable relationships with customers.

The days of treating power tools as disposable, unconnected assets are coming to an end. The benefits of connecting them -- improved safety, reduced costs, and greater efficiency -- are too significant to ignore. For the manufacturers, this isn’t just about keeping up with technology. It’s about rethinking how they operate, gaining visibility into their products, and delivering real value to their customers. For construction as a whole, it’s about plugging one of the last gaps in connectivity.

The power tools segment is the next domino to fall in the connectivity revolution. And once it does, the industry will be better and safer for it.

Richard Haggarty, Trackunit

Richard Haggarty is senior director of Product Management at Trackunit.

 

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