Cutlery and Handtool Manufacturers NAICS 3322

Mar 18, 2026 - War Disrupting Metals Markets

• Escalating conflict in the Middle East and closure of the Strait of Hormuz are disrupting global metals supply chains, according to Wood Mackenzie analysts. The region is a key supplier of aluminium and steel inputs, and disruptions to ports and shipping routes are tightening supply and raising market risk for manufacturers that purchase metals. Aluminium markets were already projected to face a deficit, and interruptions to exports from Gulf producers could further tighten supply and push prices higher. The most immediate impact is on steel markets. Iran typically exports about 4 million tons of finished steel and 7–8 million tons of semi-finished products annually, roughly 11% of global semi-finished steel trade. With ports disrupted, this supply has effectively disappeared, causing billet prices to surge as buyers seek alternative sources. For manufacturers that rely on metal inputs, the conflict increases the likelihood of higher raw material costs, shipping delays, and supply volatility.
• The US construction industry, a key end-user of knives and handtools, shed 11,000 jobs on net in February, according to an Associated Builders and Contractors analysis of Labor Department data. Nonresidential construction employment shrank by 3,800 positions, with losses in two of the three subcategories. Heavy and civil engineering lost 6,500 jobs, and nonresidential specialty trade lost 1,400 positions, while nonresidential building added 4,100 jobs in February. Construction employment has declined in eight of the past 11 months, and industry backlog has dropped to a four-year low, reflecting weaker construction activity and spending. For manufacturers of knives and handtools, these trends may signal softening near-term demand, particularly for products tied to infrastructure, specialty trades, and certain nonresidential projects. However, modest job gains in nonresidential building suggest some continued demand for tools used in construction, potentially supporting orders despite the broader slowdown.

• China’s imposition of export controls on roughly 300 categories of steel products that began on January 1, 2026 will reshape global steel flows, The Wall Street Journal reports. Exporters in China will now need government permission to ship items such as billet, hot‑rolled coil, stainless steel, bar, and pipe, all materials that have contributed to China’s record‑high steel exports in 2025. For US makers of steel products, China’s move to curb the outflow of steel and steel products would likely result in less downward price pressure from low‑cost Chinese steel, improving domestic pricing power. However, US manufacturers that rely on imported semi‑finished or specialty Chinese steel, such as cutlery and handtool manufacturers, could see tighter supplies and rising costs. China’s exports of steel products are on track to hit a record in 2025, according to WSJ.
• Makers of stainless steel cutlery and handtools are facing higher input costs due to tariffs on the metal. According to new federal data analyzed by Associated Builders and Contractors (ABC), iron and steel prices are driving up construction costs. Over the past 12 months the producer price index for iron and steel has risen 9.2%, BLS data shows. Alongside iron and steel, copper wire and cable prices jumped 13.8% in the past 12 months. "Prices rose at an especially rapid pace in some of the categories most affected by tariffs,” said the ABC's chief economist Ayan Basu. The upward trend follows President Trump's decision earlier this summer to double tariffs on imported steel and aluminum from 25% to 50%. Manufacturers of architectural and structural metals face rising costs for metals and potential falling demand for their products as rising input costs may cause delays or cancellations of construction projects.