Industry overview and current situation

The Tools & Hardware industry is indelibly connected to the construction and building sector and to accurately map the trends of one it is essential to first look at the growth of the other on a global market. The building and construction industry has grown exponentially since the end of the second world war. This is generally accepted as being a result of the growing number of renovation activities as global citizens demand a better standard of living, including improved housing, health, and education infrastructures. The restrictions of brick-and-mortar stores are fast being replaced by ecommerce sites around the globe as trending products and Google trends begin to matter to customers that are passionate about DIY and are ready with their credit cards.

Ecommerce platforms and social media

Online stores and online businesses like Amazon, Etsy, and eBay are helping to drive the industry and improve profit margins by making sure the right products, niche products, and profitable products (basically the best products) become the best sellers. However, online business does not just depend on displaying product ideas on the marketplace via e-commerce stores as careful marketing is necessary. Social media can help the cause, and platforms like Instagram, Twitter, Facebook, and Shopify can provide the marketing required for you to achieve a best sellers rank, and conduct the product research necessary to find out the sales data in your product category.

Customers, DIY, and industrial

Hand tools and associated hardware are essential components and are applied in a variation of applications including industrial, household, and do-it-yourself (DIY) developments. These products are essential for construction and building projects, the automobile and aerospace industries, and DIY projects.The industrial hand tools sector is larger and displays bigger potential for future trade. Hand tools are used more often by the industrial sector than by DIY users and industrial consumers are more likely to purchase value-added tools because of their requirement for sustainability. That being said, hand tools are (obviously) manually operated meaning that their procedures are restricted, which could be an obstacle to growth predictions for the industry. However, the application of hand tools in the maintenance of machinery and vehicles should ensure that sales remain steady through the period forecasted. Against this backdrop, FMI (Future Market Insights), identifies the expansion of automotive and construction sectors as scopes for growth of the market.

Although there is a huge and growing demand for tools for personal DIY, Industrial usage still continues to account for the major portion of hand tools sales. Hand tools and associated hardware are used across various manufacturing industries and are also indispensable for repair and maintenance. Several survey companies including industry leading FMI have predicted that this industry will continue to grow rapidly and that the industrial sector will account for over 60% of the total.

FMI’s analysis of this sector shows that the sales of hand tools have increased at a Compound Annual Growth Rate of 1.3% between 2016 and 2020. The key players in this industry include:

Key manufacturers and retailers in the tool and hardware industry

Stanley
Black & Decker
Snap-on Incorporated
IDEAL INDUSTRIES, INC.
Apex Tool Group, LLC.
KLEIN TOOLS INC
Emerson Electric Co.
Akar Tools Limited
Channellock, Inc.
JK Files (India) Limited
Kennametal Inc.
Wera Tools

The COVID-19 pandemic has caused a serious impact at various levels of the global economy and nowhere is this more evident than in the hand Tools & Hardware market. Supply and demand have become insufficient in regions such as North America, Europe, and Asia-Pacific, and the Year-On-Year growth of the sector is predicted to decline significantly. Despite this, FMI expects the global hand tools market’s Compound Annual Growth Rate to increase at 3.9% through to 2031.¹ In summary, it is expected that customer consumption will improve and get back to its previous levels of growth and cross border trade in a post-pandemic world.

The innovation and growth of the industry

Innovation is important for the growth of the industry with many of the leading tool and hardware manufacturers introducing innovative hand tools designed to make labor easier. The development of novel designs will enhance the commercial potential of hand tools and associated hardware and aid the industry in growth.

Research and development

Many tool and hardware manufacturers are investing heavily in research and development in an effort to achieve a competitive edge over their competitors and several have adopted product development and product positioning strategies designed to enhance their market position. Custom hand tools are also a factor with many manufacturers partnering with leading end-users to provide solutions.

Research and development have become a primary objective for many of the most successful tool and hardware manufacturers. One of the major considerations is the ergonomics of the products and the efforts to improve their operational efficiency by making lighter tools with enhanced damped grips to enable a stronger grip on the item.

The future of the global tool and hardware industry

Different countries tell a different story when it comes to the global tool and hardware industry. Here’s a look at some of the major players, their industry trends, their business philosophies, and a market forecast for the future.

China is the major manufacturing hub for the tool and hardware industry, an event that has been primarily driven by its rapid industrial development. Many major tool and hardware manufacturers globally have factory units in China that produce their tools or at least parts of them. They benefit from the low labour and material costs that allow manufacturers to produce cheaper hand tools and high manufacturing productivity.

China's domestic hand tool industry is mostly composed of smaller manufacturers that concentrate their efforts on meeting the Middle East, Latin American, African, and Asian demand for hand tools. Additionally, China’s growing automotive, electronics, and aerospace industries are generating opportunities for the evolution of the industry and increasing the market share.

Demand for hand tools in the USA is rising significantly due to the increasing customer partiality for light and durable hand tools designed for DIY enthusiasts. The U.S. Census Bureau announced that construction spending in North America amounted to US $1,459.4 Bn in November 2020, despite the negative effects of the COVID-19 impact on world markets.

Japan's overall industrial manufacturing figures increased in 2019. This news is predicted to give further stimulus to the market for hand tools and hardware.

The car and motorcycle industries account for the biggest share of Japan’s manufacturing sector and Japan’s automotive brands, including Nissan, Toyota, Suzuki, Honda, Kawasaki, Yamaha, and Mitsubishi are also global leaders in their respective fields.

In Europe, particularly in Germany, the evolution of the aerospace industry has formed an important opportunity for the Tools & Hardwareindustry. A report by the Germany Trade and Invest agency (GTAI) announced that the country’s aerospace industry produced turnover in excess of 44.5 billion dollars in 2018.

Alibaba.com and the Online Trade Show | Summer

Alibaba.com has been dealing with the tool and hardware industry for a long time and has achieved many good results. The B2B ecommerce platform has allowed many tool and hardware traders to extend their trade and make the move to go global.

It remains the world’s principal B2B ecommerce platform and is generally judged to be the place to begin for Tools & Hardwaretraders looking to expand their horizons internationally. If you require a product to sell (either by ecommerce or mortar), it will be made available to you by the manufacturer via Alibaba.com’s expert service.

Alibaba.com’s major role is to help enable a transaction between the buyer and the seller and is specifically designed for B2B. If you’re not a ‘business’ you can still purchase products through Alibaba.com although remember when you source products through the platform, you have to buy in bulk or wholesale. This is what gives the sellers on Alibaba.com a competitive edge, one that is passed on to the buyer after the transaction.

Discover how to give your company the best opportunity for success. The mega virtual trade show organized by Alibaba.com in June is a vital event designed to help you succeed. This event is designed to help introduce you to premium suppliers and help with efficient global sourcing.

Introduction to the EPE: Access to trusted suppliers

To help buyers source efficiently and screen for quality, the “verified” logo will appear alongside professional suppliers that have been verified by independent third parties for industry-specific qualifications and services. When searching for product details or through company profiles, buyers can see suppliers’ strengths like corporate qualification, product qualification, and corporate capabilities. To make it even easier, Alibaba.com recently launched an Elite Partner Event (EPE) where buyers can find high-quality products and suppliers in one place. This vetted group of global suppliers features innovative, new technologies and products in a variety of categories to help enhance your competitive edge.

Seller Success Story

Example of Alibaba.com’s role in the success of a trader in the Tools & Hardware industry. Professional buyers in the Tools & Hardware industry can find the following excellent suppliers on the Alibaba.com International Station platform to help them achieve success.

A prime example of the success that the Alibaba.com ecommerce platform can bring to the industry is the story of The Guangdong Topcent Development which is a company operating within the Tools & Hardware industry.

Research and development

Many R&D teams at Topcent headquarters and manufacturing bases are dedicated to developing new products. Each year, Topcent will send a R&D team abroad three times to research the international markets and varied users’ necessities including:

R&D
Raw material
Punching into parts
Electroplating
Salt-spray test
Assembly
Closing and opening test
Packaging

The Topcent QC team will professionally check all products from the raw material purchasing process to pre-shipment to ensure the utmost quality and service. This Quality Control team has 15 experts, all of them have worked in the hardware field for more than three years. Topcent has 10 major efficient departments employing 100 professional experts.

In terms of selling its products, Topcent owes much of its success, especially in international export, to the Alibaba.com ecommerce platform where Topcent offers customer promotions like $100 off for every order of over $10,000. Alibaba.com provides Topcent with all the tools to build a successful digital platform and then provides the support to make sure that it is used properly and it works.

Aspects of the Alibaba.com Online Trade Show (FAQs)

What is the Online Trade Show?

This summer, Alibaba.com will launch an Online Trade Show which is a ‘must attend’ for companies looking to boost their profits to the next level. At this essential show, buyers can easily reach out to selected suppliers (who have attained 3 stars and above). All the suppliers featured have promised premium product quality and outstanding service capabilities, including R&D, bespoke products, design, customer service, order fulfilment and will also offer special rates & discounts for professional buyers (identified as "Pro Buyers" by Alibaba.com). This essential function can really help with your market opportunities. Join us for the opening ceremony at the VIP summer pavilion.

Can I access Industrial Reports?

Buyers can gain access to eight industrial reports all of which have been collated from the latest data and trends collected by Alibaba.com to help the buyers develop prospects.

What is ‘The Boss Reception about?

To save valuable time for buyers and increase their buying efficiency there will be a dedicated "VIP pavilion" for professional buyers where they can meet and negotiate directly with high level managers from over 1,000 suppliers (who have achieved 4 stars and above), in order to help them to speed up their procurement procedures and streamline their business.

When is the Online Virtual Event?

Buyers can also attend a high-level online virtual event this summer [time to be defined] and enjoy "thought-leadership" speeches from the Head of Alibaba.com B2B, North America, the CEO of UFI, the High Management of Wayfair in the Home & Garden category, as well as a series of speeches from successful buyers and sellers on Alibaba.com.

What can you tell me about the Elite Partner Event?

Buyers can also get inspired by the EPE (Elite Partner Event) where they can reach out to 20 elite suppliers of Alibaba.com in various categories and learn from their strategic expertise.

References

https://www.futuremarketinsights.com/reports/hand-tools-market