Cutlery and Handtool Manufacturers NAICS 3322

Jan 18, 2026 - Supply Chain Consolidation

• Consolidation among steel mills and service centers, combined with 50% Section 232 tariffs, is reshaping the steel supply chain, The Fabricator reports. Steel products manufacturers, including makers of cutlery and handtools, are expected to feel supply chain changes acutely. Mergers such as Ryerson–Olympic Steel and Russel Metals’ acquisition of Kloeckner facilities concentrate distribution power, reducing options for smaller buyers and increasing dependence on fewer service centers for specialty grades, custom cuts, and just‑in‑time inventory. Moreover, tariffs have sharply reduced imports, tightening domestic supply and driving up prices for steel products used in blades and tools. With service centers no longer pressured to move inventory quickly, prices rise faster, fall slower, and become harder to negotiate. Manufacturers face longer lead times, fewer financing options, and diminished leverage in sourcing high‑quality steels. The result is a more volatile, less competitive supply environment that raises production costs and complicates planning.
• China’s imposition of export controls on roughly 300 categories of steel products beginning 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.

• The US construction industry, a key end-user of knives and handtools, is facing a labor crisis as stepped-up immigration enforcement disrupts worksites nationwide, MSN reported in November. Builders, who were already facing a shortage of skilled workers, say aggressive immigration enforcement at construction sites carried out by Immigration and Customs Enforcement (ICE) have exacerbated the problem. Indeed, one in three construction businesses report being affected by ICE actions, threatening project timelines and economic growth, according to MSN. The uncertainty caused by the ICE raids and worker shortage is causing some construction firms to shrink their crews or stop projects. According to the 2025 Workforce Survey published by the Associated General Contractors of America and the National Center for Construction Education and Research, 88% of firms have openings for key positions, 92% are having trouble filling positions, and 45% report project delays due to the worker shortage.
• 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.