Hand Tools Industry

Hand tools are those types of non-powered tools which are designed for use by experts as well as in Do-It-Yourself (DIY) projects, like home repairs, general maintenance, woodworking, building, mechanics and gardening. The hand tool industry is facing new challenges related to worldwide business globalization and the invention and use of electronic business. Every single manufacturer, irrespective of its size and importance in the market, should watch the movements in its business environment, in order to adjust activities accordingly.

Characteristics of the industry

• A labor Intensive Industry: A source of employment to many, hand tools industry is basically labor intensive in nature, whose development is of great importance for a competitive as well as a self-reliant industrial structure. The manufacturers of hand tools produce a comprehensive range of of hand tools, right from carpentry and plumbing tools to striking and cutting tools.
  
  
• Energy intensive industry: Apart from being a labor intensive industry, this industry is also an energy intensive one. It is estimated in a recent study that in most economies adoption of energy efficient processes and technologies can yield in energy savings of up to 30 to 50%.
  
  
• Effective contributor to the economy: Adding positively to the income of a country, hand tools industry has contributed to economy in terms of development and technology up-gradation.

Consumption patterns of hand tools
This depends on the following factors:

• Price sensitivity
• Supply chain dynamics
• Rationalization
• Product quality, design and safety
• Service
• Environmental factors

Market segment
Generally speaking, hand tools products are applied in the following market segments:

• Households (DIY)
• Professionals (e.g. carpenters, plumbers, craftsmen, toolmakers etc).

Factors to consider for the grow of the hand tool industry
Hand tool industry is a growing one. Developed countries like EU, USA have already been manufacturing and exporting hand tools since a long time. Developing countries like India, China, Japan are coming up. Some factors that are to be considered for the overall development of the industry are as follows:

• Manufacturing centers should be equipped with the latest hand tool manufacturing technology.
  
  
• For small, medium scale entrepreneurs in the developing areas, credit should be made available to them at lower rates of interest.
  
  
• This industry is usually a part of hand and power tool industry as a whole. Hence, steps should be taken to built up a Hand Tool Industrial Estate, exclusively for the Hand Tools Units, in all countries.
  
  
• Labor laws of all countries dealing with hand tools should be made more investor friendly, specially for small entrepreneurs.