Dull blade: Revenue will contract as input prices rise and competition remains fierce

The Hand Tool and Cutlery Manufacturing industry in Canada produces a wide variety of metal goods, including landscaping and construction tools, industrial components and consumer products. Although a diversified product selection usually shelters the industry from macroeconomic fluctuations, its largely homogeneous and low-cost nature render manufacturers vulnerable to pressure from lower-priced and more complex substitutes such as power tools. As a result, imported products manufactured in countries with lower labour costs have increasingly flooded the Canadian market. Competition from imports will continue to constrain industry performance over the next five years, forcing some operators to reduce their workforce, merge with other operators or leave the market altogether...read more.

Industry Statistics & Market Size
Revenue
$526m
Annual Growth 13-18
-5.1%
Forecast Growth 18-23
Profit
Employment
3,300
Businesses
267

Industry Threats & Opportunities

  • Despite increased competition from imports, lower input costs have helped improve industry profit
  • Although the industry operates at a significant trade deficit, exports have remained a significant source of revenue
  • Over the next five years, domestic construction activity is expected to grow
  • Industry Report - Industry Products Chapter

    Hand and edge toolsHand and edge tool sales account for a combined 68.8% of industry revenue in 2018. This product group is broadly segmented into interchangeable hand tools and other tools that are not interchangeable. Interchangeable tools include all tools that can use several tips, bits or components to fit the need of multiple projects. A good example of this is a screwdriver, which is typically Phillips or flat tipped. An interchangeable screwdriver may have a reversible tip or a box of tips for different sizes and shapes that can fit onto the tool. The convenience of these tools instigates demand, resulting in the 59.4% of revenue that these tools account for in 2018. The remaining 9.4% are for other tools that do not have interchangeable parts...purchase to read more.

    Additional Insights for the Hand Tool & Cutlery Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hand Tool & Cutlery Manufacturing Industry are

  • Having contracts which are favourable to purchaser
  • Production of premium goods/services
  • Establishment of brand names
  • IBISWorld analysts also discuss how external factors such as Canadian-dollar effective exchange rate index and Consumer spending in the Hand Tool & Cutlery Manufacturing industry impact industry performance..

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    What's in this report

    What is the Hand Tool & Cutlery Manufacturing Industry?

    This industry comprises establishments primarily engaged in manufacturing nonprecious and precious plated metal cutlery and flatware; manual hand and edge tools; manual handsaws; all types of saw blades, including those for sawing machines; metal kitchen utensils; and pots and pans, except those manufactured by casting.

    Industry Products
  • Interchangeable hand and edge tools
  • Other hand and edge tools
  • Handsaws, saw blades and tips
  • Kitchenware
  • Industry Activities
  • Manufacturing metal cutlery and flatware
  • Manufacturing nonpowered hand and edge tools
  • Manufacturing nonpowered handsaws and saw blades
  • Manufacturing metal kitchen utensils
  • Manufacturing pots and pans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian-dollar effective exchange rate index
  • Consumer spending
  • World price of steel
  • Total imports
  • World price of aluminum

  • Current Performance
  • International trade defines the industry
  • Input prices shape profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Effects of a shrinking market
  • International trade
  • Table: Hand Tool & Cutlery Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hand Tool & Cutlery Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Restaurant & Hotel Equipment Wholesaling in Canada
  • Tool & Hardware Wholesaling in Canada
  • Farm, Lawn & Garden Equipment Wholesaling in Canada
  • Pharmaceuticals & Pharmacy Supplies Wholesaling in Canada
  • Home Improvement Stores in Canada
  • Hardware Stores in Canada
  • Department Stores in Canada
  • Warehouse Clubs & Supercentres in Canada

  • Key Selling Industries
  • Aluminum Manufacturing in Canada
  • Paint Manufacturing in Canada
  • Plastic & Resin Manufacturing in Canada
  • Steel Rolling & Drawing in Canada

  • Products & Services
  • Interchangeable hand and edge tools
  • Handsaws, saw blades and tips
  • Other hand and edge tools
  • Kitchenware
  • Other
  • Chart: Hand Tool & Cutlery Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports to the United States
  • Distributors
  • All other exports
  • Retailers
  • Chart: Major Market Segmentation for the Hand Tool & Cutlery Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Hand Tool & Cutlery Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hand Tool & Cutlery Manufacturing Industry

  • Industry Globalization
    Stanley Black & Decker Inc., Griffon Corporation,
  • Table: Stanley Black & Decker Inc. - financial performance
  • Table: Griffon Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hand Tool & Cutlery Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hand Tool & Cutlery Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Canadian-dollar effective exchange rate index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cutlery
  • Any implement used for preparing, serving or eating food.
  • Hand Tool
  • Any tool that is powered by manual labour (not electricity).
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • What Our Customers Say

    Why buy this report?

    The Hand Tool & Cutlery Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hand Tool & Cutlery Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hand Tool & Cutlery Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hand Tool & Cutlery Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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