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 995 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 $10.4 million annually.

    • The cutlery and hand tool manufacturing industry consists of about 995 firms that employ about 33,255 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
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Mar 18, 2024 - Higher Prices Offset Rising Payrolls in 2023
                                    • Employment by cutlery and handtool manufacturers was flat in December compared to a year ago after growing 1.9% in the previous annual comparison, according to the US Bureau of Labor Statistics. Average wages at fabricated metal manufacturers extended their steady climb last year rising to a new high of $25.82 per hour in December, a 3.7% year-over-year change. Rising producer prices for cutlery and handtool manufacturers – up 17.4% between December 2020 and December 2023 – are helping to offset rising labor costs.
                                    • 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.
                                    • The Biden administration in late December extended the tariff rate quota (TRQ) agreement on steel and aluminum with the European Union until year-end 2025, The Fabricator reports. The agreement, which was due to expire at the end of December, allowed EU steel and aluminum exporters to avoid the 25% and 10% tariffs on steel and aluminum imposed in 2018 as long as the exports were below certain levels. The TRQ extension is an interim solution until the US and EU can finalize a broader agreement addressing the overcapacity and decarbonization of steel. Both countries are looking to replace the current tariffs with a system basing tariffs or fees on the level of carbon emissions attached to the production of a particular import. It remains to be seen whether replacing the current TRQ agreement on imported steel and aluminum with a tariff system based on greenhouse gas emissions would impact US buyers.
                                    • Builders faced tighter credit conditions in the third quarter of last year as interest rates on loans rose and lenders were less willing to offer credit, BuilderOnline reported in November. Surveys conducted by the National Association of Home Builders (NAHB) and the Federal Reserve during Q3 found credit conditions tightening with the availability of loans for residential land acquisition, development & construction continuing to tighten. According to the NAHB survey, the most common ways in which lenders tightened credit were by increasing the interest rate on loans (cited by 80% of the builders and developers who reported tighter credit conditions), reducing the amount they’re willing to lend (57%) and lowering the allowable Loan-to-Value or Loan-to-Cost ratio (52%), per BuilderOnline. Tighter credit conditions discourage homebuilding and other construction projects, key customer markets for knife and handtool manufacturers.
                                    Get A Demo

                                    Vertical IQ’s Industry Intelligence Platform

                                    See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                    Build valuable, lasting relationships by having smarter conversations -
                                    check out Vertical IQ today.

                                    Request A Demo