Stihl announced late last week that it would earmark $60 million for battery-powered equipment manufacturing at its Virginia Beach facility. This includes the production of cordless blowers, pruners, trimmers, and multi-attachment tools through 2025. Moreover, it encompasses the assembly of over five different battery packs to power those units.
The company’s investment is part of an initiative to increase the share of sales from battery products to at least 35% by 2027. They hope to hit 80% by 2035.
The move isn’t a surprise considering the brand’s performance and the swift expansion of the cordless OPE market in general.
Stihl and the Battery-Powered OPE Market
From a bird’s-eye-view, Stihl’s range of products includes more than 80 cordless solutions for consumers and professionals. Battery-powered tools account for one in four of Stihl’s sales. That in contrast to five years ago, when the BGA 56 blower was the only model the company assembled in the U.S.
What’s more, Stihl tells us that we can expect to see an additional 30 new battery-powered products over the next two years. This increase is in line with the expansion of the cordless OPE market, which is still experiencing rapid gains.
Indeed, the overall landscape had a value of more than $34 billion in 2023. Furthermore, economists expect the compound annual growth rate to exceed 5.5% between 2024 and 2032. Driving this projected eight-year rise is a heightened demand for lawn and gardening services.
Stihl’s Virginia Beach Facility
In support of its 2027 and 2035 production goals, Stihl converted 84,000 square feet of warehouse space to battery tool manufacturing in 2023.
Built in 1974, the Virginia Beach campus has grown from a 20,000-square-foot rented warehouse to more than 1.5 million square feet of manufacturing and administrative space.
In total, the facility encompasses 150 acres.
As a result of record sales over several years, operations expanded by nearly 50 percent, resulting in over 1,000 new U.S. manufacturing jobs since 2020. This latest $60 million investment in battery power may lead to more.
