Cutlery and Handtool Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,000 cutlery and hand tool manufacturers in the US produce nonpowered hand and edge tools; saw blades; and metal kitchen cookware, utensils, and nonprecious and precious-plated metal cutlery and flatware. Large firms may also produce hardware, industrial tools, power tools, and related products, such as storage systems.

Variability in Raw Material Costs

The cost of raw materials, including ferrous and non-ferrous metals, can vary and affect margins and profitability for hand tool and cutlery manufacturers.

Competition from Foreign Manufacturers

Domestic hand tool and cutlery manufacturers compete with foreign producers, which offer the same or similar products but enjoy a more favorable cost structure.

Industry size & Structure

The average cutlery and hand tool manufacturer operates out of a single location, employs 33-34 workers, and generates $9-10 million annually.

    • The cutlery and hand tool manufacturing industry consists of about 1,000 firms that employ about 34,400 workers and generate $10 billion annually.
    • The industry is concentrated; the top 50 companies account for 70% of industry revenue.
    • Large firms that manufacture cutlery or hand tools, which include Stanley Black & Decker, Snap-On, L.S. Starrett Company, and Lifetime Brands, may have global operations and generate a significant percentage of revenue from foreign markets.
    • Handtool and saw blade manufacturers account for 82% of establishments, and kitchen utensil and cookware manufacturers account for 18% of establishments.
                                    Industry Forecast
                                    Cutlery and Handtool Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    May 14, 2022 - US to Lift Tariffs on Ukrainian Steel
                                    • In a bid to support Ukraine's war-torn economy, the Biden Administration in May announced it would lift tariffs on Ukrainian steel for one year. Although Ukraine is not a major supplier of steel to the US, ranking 12th among America’s foreign suppliers, according to The New York Times, US metal manufacturers and users welcomed the lifting of the 25% tariff on foreign steel. The Coalition of American Metal Manufacturers and Users (CAMMU), which represents more than 30,000 companies in the manufacturing sector and downstream industries, said the steel and aluminum tariffs were exacerbating supply chain issues and making it harder for domestic manufacturers to obtain raw materials to meet demand. In recent months, the White House has negotiated deals with the European Union, Britain and Japan to ease metal tariffs while still maintaining some protections called for by US steel makers, the Times reports.
                                    • Remodeling projects and spending on home remodels, a driver of demand for hand and cutting tools, are at their highest rates since 2018, according to the 2022 Houzz & Home Study. In 2021, 55% of homeowners remodeled their living spaces, up from 53% in 2020 and 54% in both 2019 and 2018. Median spend on remodeling projects increased 15% last year and an additional 20% this year, for a median spend of $18,000. Kitchen remodels remain the most popular projects among homeowners, with spending in 2021 up 25%, from $12,000 in 2020 to $15,000 in 2021. Market fundamentals, including limited and aging housing stock, continue to drive demand for home remodels, according to the study.
                                    • The global handtool market is forecast to grow 4.2% annually and exceed $31.8 billion by 2030, according to Allied Market Research. Growth will be driven by increased construction activity and DIY projects, the proliferation of automobile repair apps that push vehicle owners to schedule maintenance and repairs, and advancements in manufacturing in developing countries. Factors restraining growth include greater demand for power tools and fluctuations in raw material costs.
                                    • The global kitchen knife market is forecast to grow 7% annually through 2025, according to Technavio. Premium knives will be the segment driving sales. The Asian-Pacific region is expected to post the strongest growth in demand, potentially creating opportunities for high-end knife exports from US producers.
                                    • Employment in the cutlery and handtool manufacturing industry increased 1.4% year over year in March 2022. Beginning in June 2021, employment was on par with pre-pandemic levels recorded in 2019.
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