Dull blade: Input cost fluctuations have harmed revenue growth

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, the industry is largely homogeneous. Constrained demand for domestically produced hand tools has made it difficult for many operators to stay in business, forcing many businesses to close underperforming facilities or leave the industry altogether. As a result, industry participation has decreased considerably. The threat of volatile input prices, alongside the high share of domestic demand, fulfilled by industry imports will constrain industry performance over the five years to 2024...read more.

Industry Statistics & Market Size
Revenue
$606m
Annual Growth 14-19
2.1%
Forecast Growth 19-24
Profit
Employment
3,001
Businesses
256

Industry Threats & Opportunities

  • The threat of volatile input prices will constrain industry performance
  • Exports have remained a significant source of revenue and a key driver of industry growth
  • Domestic construction activity is expected to grow over the next five years
  • Industry Report - Starting a New Business Chapter

    The Hand Tool and Cutlery Manufacturing industry in Canada experiences few barriers to entry. IBISWorld does not expect that these conditions will change significantly, as there is little industry-specific government regulation and start-up costs are similar to those characterizing most other manufacturing industries. The primary barrier to entry into this industry is the high level of competition, both from major industry companies with established economies of scale such as Stanley Black & Decker Inc. and from foreign imports. Imports are available at low prices in the Canadian market, and major companies benefit from cost efficiencies as well as a high degree of brand recognition, so new companies will contend with considerable competitive pressure for market share. Com...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 and services
  • Establishment of brand names
  • IBISWorld analysts also discuss how external factors such as Canadian 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 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
  • All other exports
  • Distributors
  • 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
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Hand Tool & Cutlery Manufacturing

  • Basis of Competition
  • Internal competition
  • External 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 (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)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Canadian-dollar effective exchange rate index (2010-2024)

  • 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?

    IBISWorld’s Hand Tool & Cutlery Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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