Double-edged: Despite growth, less expensive imports will dampen demand for domestic goods

The Hand Tool Manufacturing industry has performed well over the past five years. The industry, which was hit particularly hard by the recession, has recovered steadily since. One of the key drivers of this growth has been the growth in the value of residential construction. Consumers flocked back to the market to unleash pent-up demand for purchases of hand tools for home improvement projects, which consumers delayed during the recession. Additionally, growth in the big-box retailers segment proved extremely beneficial for industry operators. While specialty retailers faltered during the downturn, big-box retailers and other large home improvement store brands such as Home Depot and Lowe's enticed customers with incentives...purchase to read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 12-17
2.3%
Forecast Growth 17-22
Profit
Employment
30,766
Businesses
988

Industry Threats & Opportunities

  • Growth in the big-box retailers segment proved extremely beneficial for industry operators
  • The largest market for the Hand Tool Manufacturing industry is the retail sector
  • IBISWorld expects the market for imports to grow due to the strengthening of the US dollar
  • Industry Report - Industry SWOT Analysis Chapter

    The Hand Tool Manufacturing Industry is in the mature stage of its life cycle. Although industry revenue has been growing over the past five years, the industry’s trajectory will level out in the long run due to heavier competition from goods produced abroad. Additionally, the industry’s success is heavily contingent upon factors such as housing starts and spending on home improvements, which could be negatively affected in the event of an economic downturn. Industry value added, a measure of the industry’s contribution to the overall economy, is expected to rise at an annualized rate of 2.2% over the 10 years to 2022. Comparatively, US GDP growth is expected to reach grow at an annualized rate of 2.0% over the same period. Ind...purchase to read more.

    Additional Insights for the Hand Tool Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hand Tool Manufacturing Industry are

  • Having an extensive distribution/collection network
  • Access to the latest available and most efficient technology and techniques
  • Effective quality control
  • IBISWorld analysts also discuss how external factors such as Value of residential construction and Trade-weighted index in the Hand Tool Manufacturing industry impact industry performance..

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    What's in this report

    What is the Hand Tool Manufacturing Industry?

    This industry primarily manufactures hand tools, including mechanics’ hand service tools, precision measuring tools, agricultural tools and woodcutting tools. This industry does not include power hand tools of any kind (electric or hydraulic).

    Industry Products
  • Mechanics' hand service tools
  • Dies and interchangeable cutting tools
  • Edge tools
  • Industry Activities
  • Manufacturing mechanics' hand service tools
  • Manufacturing precision measuring tools
  • Manufacturing agricultural tools
  • Manufacturing woodcutting tools
  • Manufacturing plumbers' tools
  • Manufacturing jewelers' tools
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of residential construction
  • Trade-weighted index
  • Value of private nonresidential construction
  • Private spending on home improvements

  • Current Performance
  • Market conditions vary
  • Retail demand recovering
  • Chart: Revenue Growth

  • Industry Outlook
  • Imports threaten US production
  • Rising input costs
  • Table: Hand Tool Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hand Tool Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Tool & Hardware Wholesaling
  • Farm, Lawn & Garden Equipment Wholesaling
  • Home Improvement Stores
  • Hardware Stores
  • Warehouse Clubs & Supercenters
  • Consumers

  • Key Selling Industries
  • Aluminum Manufacturing
  • Metal Stamping & Forging
  • Plastic Film, Sheet & Bag Manufacturing
  • Steel Rolling & Drawing

  • Products & Services
  • Mechanics' hand service tools
  • Other
  • Dies and interchangeable cutting tools
  • Edge tools
  • Chart: Hand Tool Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Specialized retailers
  • Wholesalers
  • Big-box retailers
  • Exports
  • Chart: Major Market Segmentation for the Hand Tool Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Hand Tool Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hand Tool Manufacturing Industry

  • Industry Globalization
    Stanley Black & Decker Inc., Snap-on Inc.,
  • Table: Stanley Black & Decker Inc. - financial performance
  • Table: Snap-on Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hand Tool Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hand Tool Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Private spending on home improvements (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Caliper
  • A hand tool used to measure the distance between two sides of an object.
  • Gouge
  • A tool similar to a chisel, but the blade edge is curved or angled in a cross-section.
  • Micrometer
  • A tool used to accurately calibrate machinery using precise measurements.
  • Miter Box
  • A wood working tool used to guide a hand saw.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hand Tool Manufacturing Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hand Tool Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hand Tool Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hand Tool Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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