New build: Industry revenue is likely to recover slightly, despite competition from abroad

The Tool Manufacturing industry predominately consists of manufacturers of high-tech specialist equipment with industrial or mining applications. Over the five years through 2019-20, industry revenue is expected to contract at a compound annual rate of 3.3% to reach approximately £1.2 billion. This includes consistent decline over the three years through 2016-17 and a projected fall of 0.5% in the current year. The overall decline of industry revenue can be deemed a result 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 more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25
Market Share of Companies

Industry Threats & Opportunities

  • Low oil prices limited demand for exploration and extraction tools, causing industry decline
  • Crude oil prices sank over the period, limiting demand from oil firms and impeding the industry
  • Government schemes like Help to Buy will support construction activity, boosting need for tools
  • Industry Report - Industry Analysis Chapter

    The Tool Manufacturing industry is characterised by a large number of small, diversified manufacturers producing a range of products in low volumes. The performance of the industry has generally been mixed over the past five years. Some segments have outperformed others, dependent on the nature and application of the type of tool manufactured. Over the five years through 2019-20, industry revenue is expected to decline at a compound annual rate of 3.3%. In the current year, revenue is expected to decrease by 0.5% to £1.2 billion.Export performanceThe level of demand for tools in key export markets such as the United States and Continental Europe is a significant factor driving industry performance. The...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 prices
  • Chart: Revenue Growth

  • Industry Outlook
  • Domestic demand
  • International demand
  • Profitability
  • 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
  • Interchangeable tools for machine tools
  • Other
  • 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
  • Chart: Cost Structure Benchmarking – Sector vs Tool Manufacturing

  • Basis of Competition
  • Internal competition
  • External 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
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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