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 Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 948 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.
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.
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.
Industry size & Structure
The average cutlery and hand tool manufacturer operates out of a single location, employs 33-34 workers, and generates about $11 million annually.
- The cutlery and hand tool manufacturing industry consists of about 950 firms that employ about 32,400 workers and generate $10.4 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 81% of establishments, and kitchen utensil and cookware manufacturers account for 19% of establishments.
Industry Forecast
Cutlery and Handtool Manufacturers Industry Growth
Recent Developments
Jul 18, 2024 - PPI at Record High
- Producer prices for cutlery and handtool manufacturers rose 2.8% in May compared to a year ago after rising 6.2% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. The producer price index for the industry was at an all-time high in May despite recent declines in new orders and shipments of fabricated metal products. Employment by cutlery, handtool, and all other fabricated metal product manufacturing was relatively flat – up just 0.4% – in May year over year, while average wages at fabricated metal manufacturers rose 4.4% in June versus a year ago to a new high of $26.20 per hour, BLS data show.
- In June, the National Association of Manufacturers launched a campaign to extend the pro-growth tax policies in the 2017 Tax Cuts and Jobs Act, set to expire at the end of next year, according to a press release. The campaign seeks to preserve 2017's tax reform to avoid economic damage to the manufacturing sector. Should Congress fail to extend the Act, NAM says manufacturers would face tax increases that would cost jobs and stifle growth and innovation. Notably, small manufacturers organized as pass-through businesses that pay tax at the individual tax rates face increases in their income taxes and a loss of tax reform’s 20% pass-through deduction. Investments in manufacturing growth will be delayed without action to restore immediate R&D expensing, accelerated depreciation for capital equipment purchases, and a pro-growth interest deductibility standard. Some 94% of manufacturers believe Congress should act to prevent these tax increases, says NAM.
- According to newly released Census Bureau figures, US capital expenditures for robotic equipment totaled $12,960 million (not statistically different than 2021) and accounted for 1.1% of total equipment expenditures in 2022. The manufacturing sector was the largest investor, accounting for more than half (56.2%) of all robotic equipment expenditures – nearly $7.3 billion that year. Amid a stubborn labor shortage, manufacturers rely increasingly on automation, including robots, for some tasks to achieve greater productivity. Also, collaborative robots (aka "cobots”) that work alongside humans are becoming increasingly popular with smaller manufacturers that cannot afford expensive industrial robots.
- The Home Depot, a leading retailer of handtools, utility knives, and blades, saw its sales fall last year, the company reported in February. Sales for fiscal 2023 (ended January) were $152.7 billion, a decrease of 3% from fiscal 2022. Comparable sales for fiscal 2023 fell 3.2%, and comparable sales in the US decreased 3.5%. “After three years of exceptional growth for our business, 2023 was a year of moderation,” said president and CEO Ted Decker. High mortgage rates and inflation caused customers to pull back on home improvement projects last year. 2023 was the first time that Home Depot – a bellwether of the home improvement industry – posted a decline in annual sales since 2009, when the housing bubble burst and blew up the US economy.
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