Drilling down: Low-cost tool manufacturing has shifted abroad, increasing competition

The Tool Manufacturing industry predominately consists of manufacturers of high-tech specialist equipment with industrial or mining applications. Over the five years through 2018-19, industry revenue is expected to contract at a compound annual rate of 5.4% to just under £1.1 billion. This includes consistent declines throughout the period, with exception of the current year, where revenue is projected to grow by 0.3%. The overall decline can be deemed a product of weak demand from downstream oil exploration and extraction markets. The majority of household tools are now manufactured in low-cost countries in Asia and Eastern Europe...read more.

Industry Statistics & Market Size
Revenue
£1.1bn
Annual Growth 14-19
-5.4%
Forecast Growth 19-24
Profit
Employment
15,181
Businesses
1,027
Market Share of Companies

Industry Threats & Opportunities

  • Weak demand from oil exploration and extraction firms caused revenue to decline
  • Demand from the mining and oil and gas industries has fallen in recent years
  • Help to Buy is expected to continue to support construction activity, to the benefit of the industry
  • Industry Report - Industry Key Buyers Chapter

    The industry has a low level of market share concentration, partly as a result of the import competition that the domestic market faces. In 2018-19, the industry's four largest firms are estimated to account for 15.3% of industry revenue. Large exporting countries that have an abundance of cheap labour can mass-produce inexpensive items such as saws, screwdrivers and knives for far less than companies based in the United Kingdom. The result is that UK companies choose instead to compete in more specialist, low-volume, high value-added markets. Consequently, the industry is characterised by a large number of small businesses. Nev...purchase to read more.

    Additional Insights for the Tool Manufacturing Industry

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

  • Ability to quickly adopt new technology
  • Effective cost controls
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Industrial production index and Total value of construction in the Tool Manufacturing industry impact industry performance..

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    What's in this report

    What is the Tool Manufacturing Industry?

    Companies in this industry manufacture tools, including clamps, vices, saws, hand tools and moulding boxes. The industry does not include the manufacture of power-driven hand tools.

    Industry Products
  • Interchangeable tools for machine tools
  • Rock-drilling and earth-boring tools
  • Spanners and wrenches
  • Knives and blades
  • Industry Activities
  • Manufacturing knives and cutting blades for machines or mechanical appliances
  • Manufacturing hand tools
  • Manufacturing non-power-driven agricultural hand tools
  • Manufacturing saws and saw blades
  • Manufacturing interchangeable tools like drills, punches and milling cutters
  • Manufacturing press tools
  • Manufacturing blacksmiths' tools
  • Manufacturing moulding boxes and moulds
  • Manufacturing vices and clamps
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial production index
  • Total value of construction
  • MSCI World Index
  • Exchange rate - euros per pound

  • Current Performance
  • Export performance
  • Slippery business
  • Competition from overseas
  • Profit and establishments
  • Chart: Revenue Growth

  • Industry Outlook
  • Domestic demand
  • International demand
  • Table: Tool Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Iron & Steel Manufacturing
  • Lead, Zinc & Tin Production
  • Copper Production
  • Other Non-Ferrous Metal Production

  • Key Selling Industries
  • Agriculture, Forestry and Fishing
  • Construction
  • Manufacturing
  • Mining and Quarrying

  • Products & Services
  • Other
  • Interchangeable tools for machine tools
  • Rock-drilling and earth-boring tools
  • Spanners and wrenches
  • Knives and blades
  • Chart: Tool Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturers
  • Construction sector
  • Mining and oil and gas exploration and extraction industries
  • Other
  • Chart: Major Market Segmentation for the Tool Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationResearch and developmentOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Tool Manufacturing

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

  • Industry Globalization
    National Oilwell Varco UK Ltd,
  • Table: National Oilwell Varco UK Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tool 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 Tool Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Carbide
  • An extremely hard material manufactured primarily from tungsten and cobalt.
  • Downhole Tools
  • Tools used for well drilling, well interventions and well completions.
  • Machine Tool
  • A powered machine for cutting, shaping or finishing metals or other materials.
  • Sintered Material
  • Objects created from powders using atomic diffusion.
  • Torque Wrench
  • A tool used to apply a specific torque to a fastener such as a nut or bolt.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tool Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Tool 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 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 Tool 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 Tool Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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