There is a fallacy that new brands are late to the modular tool storage market, or that we’re past the point where innovation or iteration can make any differences.
Modular tool boxes, organizers, and related accessories are now a permanent product category for professional tool brands, and even a number of DIY and homeowner tool brands.
Modular storage has gone mainstream.
Consider a varied group of tool users. Some might be ready to purchase their first-ever modular tool boxes and storage solutions. An increasing number will have already bought into a system that they are unlikely to stray away from. I’m sure there are some who aren’t ready to follow modern trends.
Will a user who bought into Milwaukee Packout buy anything from Dewalt’s ToughSystem or Tstak collections? Bosch? Makita Maktrak? Hilti?
Or are they firmly invested and sticking with just one tool brand?
Does this remind you of anything? There are strong parallels to cordless power tool systems.
In a similar manner, modular tool storage systems are now systems that you buy into. There’s room to explore different brands for varied needs.
For a moment, let’s forget about tool users who have already invested in one (or more) modular tool storage systems.
Every year, there are going to be modular tool box newcomers. Maybe they’re investing deeply into a new system. Or, maybe they just see something they like, and add it to their jumble of incompatible tool cases, organizers, bags, and storage totes.
Without thinking too deeply about the context, there are always going to be new buyers. Again, that’s no different than cordless power tools, where brands have an opportunity to win customers over.
Over time, that adds up. There’s the opportunity to gain new users. 1, 2, 5 years from now, the company will have a similar chance to appeal to new customers, and will hopefully also have existing owners who might be looking to expand their kit.
There has been an increase in the number of tool users who already bought into a modular tool box system. But, just because a lot of tool users have already bought into a modular tool storage system, that doesn’t mean it’s futile for tool brands to fight for visibility and market share.
That doesn’t mean tool brands can just phone it in.
A few years ago, it was the norm to launch a rolling tool box, large tool box, small tool box, and maybe an organizer, and then grow from there.
Now? The promise of expansion to come is important. Users look at Milwaukee Packout and see tool bags, wall-mounted and tool box-mounted accessories and add-ons, compatibility with battery-powered gear, multiple mobility options, and more.
It’s very much possible to compete with that, it just requires innovation and sustained momentum.
There are challenges. How many tool users are buying into a cordless power tool platform that only offers a drill, impact driver, circular saw, and reciprocating saw? What about a router? Nailers? Lighting? Vacuums?
Milwaukee Packout itself was “late” to market. It followed Festool and Tanos Systainer systems, Sortimo and Bosch L-Boxxes, Ridgid Pro Gear, Dewalt ToughSystem and Tstak systems, Makita MakPac, and even the Husky Connect tool box system.
Packout wasn’t a guaranteed success at first. Personally, I thought it was priced a bit too high. A few months in, there were signs that it was a big hit. Packout’s continued growth and success weren’t automatic. That came from strategy and effort.
I think there’s room for other brands to upheave Packout’s dominance. The same could be done at different price points. Which is the value-leader in the modular tool storage market? That’s a genuine question, as I see a couple of good systems with a mix of non-dominant market share.
Maybe those who say the competition is over are right. The professional cordless power tool industry has 2 leaders in the USA, and a couple of very strong brands all vying for a far-away third place.
I don’t know of any pro-grade modular tool box system that can overtake Milwaukee Packout. But there are some systems that have a good chance of coming in at second-best. That could eventually springboard into competing with Packout for top market share.
Am I wrong? Which brand or system would you declare the second most popular behind Packout? That’s why I think the market isn’t saturated yet.
Top-tier competition at this point really depends on how deep a brand’s pockets are, as this is what drives innovation and expansion.
Still, brands that don’t stand a chance at top spots can ship high numbers of tool boxes and organizers.
Amazon sells thousands of Dewalt Tstak tool boxes and organizers every month. Are they being used as a system? Standalone? When is the last time Dewalt expanded their Tstak lineup?
Many users need a modular mobile storage system. Many others only need specific solutions, connectable and expandable or not.
Competition also drives advancement. What would modular tool storage look like today without Packout? Packout was a catalyst. There were others. There will be more.
I don’t think the modular tool storage market is saturated yet. It’s still open to brands willing and capable to put in a lot of effort.
Storage has also become a mainstream product category that major brands can’t ignore. Name a cordless power tool brand that doesn’t also sell impact screwdriver bits.
I think it’s increasingly necessary for brands to compete in the storage space, and that there’s plenty of recurring market share opportunity to encourage competition.
Or maybe the market is saturated, and I’m hopelessly optimistic.
