Cutlery and Handtool Manufacturers NAICS 3322

May 18, 2026 - Toolmaker Closes Last Hometown Plant

• The closure of Stanley Black & Decker’s last US tape measure plant on May 18, as reported in The Wall Street Journal, reflects the growing competitive and cost pressures facing domestic handtool manufacturers. The company cited declining demand for the single-sided tape measures produced at its Connecticut plant and a shift toward the double-sided models Stanley produces more efficiently overseas at its plant in Thailand. Stanley declined to invest in the Connecticut plant on the grounds that it wasn’t fiscally prudent, according to executives cited by WSJ. In 2023, Stanley also closed a Texas plant that made Craftsman-brand wrenches and ratchet sets. The closure of the two plants underscores the need to invest in updated technology and adapt quickly to evolving customer demands. Failure to invest can lead to lost competitiveness, layoffs, plant closures, and ultimately the hollowing out of US manufacturing in favor of cheaper overseas production.
• The Iran war and effective closure of the Strait of Hormuz are disrupting global metals supply chains, according to Wood Mackenzie analysts. The region is a key supplier of aluminum and steel inputs, and disruptions to ports and shipping routes are tightening supply and raising market risk for manufacturers that purchase metals. Aluminum 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.
• Employment by cutlery and handtool manufacturers stayed flat in February compared to a year ago and lagged broader measures, according to the US Bureau of Labor Statistics. Employment by the industry grew just 2.7% over the past ten years, significantly lower than the 11.5% growth in overall private employment. Meanwhile, the average hourly wage rose 6.9% year over year in February to a new high of $29.39 per hour, BLS data shows. Sales for the US cutlery and handtool manufacturers industry are forecast to grow at a -0.14% compounded annual rate from 2026 to 2030, slower than the growth of the overall economy, according to the latest Interindustry Economic Research Fund forecast.