Brookfield-based Milwaukee Tool continued its growth in 2021 with a nearly 41% increase in sales, putting the company around $8 billion in annual revenue.
The maker of power tools has been growing rapidly in recent years behind innovations in cordless tools and expansions into new markets and industries.
While Milwaukee Tool’s parent company, Hong Kong-based Techtronic Industries Inc., does not break out revenue for the brand, it did cross $2 billion in sales for the first time in 2015. Milwaukee’s sustained growth in recent years grew revenue to at least $5.66 billion in 2020. Topline growth of 40.6% in 2021 would put revenue at $7.96 billion last year.
Joe Galli, chief executive officer of TTI, called the 2021 sales growth “a dramatic statement about the leadership position Milwaukee has now claimed.”
Overall, TTI’s revenue in 2021 grew 34.6% to $13.2 billion and net profit increased 37.2% to almost $1.1 billion. Galli said the company has moved up its internal target of reaching $20 billion in sales from 2025 to 2024. With Milwaukee Tool currently representing around 60% of the company's revenue, hitting the target would put Milwaukee Tool's revenue around $12 billion.
Milwaukee Tool’s North American business, which accounts for the majority of its revenue, was up 38% in 2021 while Europe was up 53% and the rest of world segment was up 44%.
Galli highlighted TTi’s products in the battery-powered outdoor equipment market, noting the company will have 977 engineers focused on outdoor battery products across the Milwaukee and Ryobi brands, up from 361 in 2020.
He also said the Milwaukee outdoor product business will launch 15 new products this year.
Other Milwaukee Tool products Galli highlighted on the company’s earnings call included a new line of wet/dry vacuums, continued growth of its MX Fuel line and blades for oscillating power tools. Galli said Milwaukee Tool was doing around $20 million in blade sales when it bought Sun Prairie-based Imperial Blades in 2018. That figure is now around $100 million.
Galli also highlighted personal protective equipment as an area the company will continue to invest in.
“We think the PPE market is incredibly vulnerable for our attack here,” he said. “We think there's some companies with dated product lines, big conglomerate type companies that have this as one of their categories and we are going to go right at this with premium priced, better products that perform better, enhance productivity.”
Read BizTimes Media's Business Cares coverage focused on education in the Feb. 21 issue of BizTimes Milwaukee: