Private Companies Report - The Freedonia Group

Industry StructureGain a better understanding of yourcompetition and analyze yourcompany's position in the industrywith information about thecharacteristics of leading power andhand tool manufacturers includingtotal sales, capabilities and regionalconcentration.This information helps you:• Evaluate diversificationopportunities basedon product linesof other privatecompanies.• Understand barriersto entry based onindustry concentration.• Develop positioningstrategies based onsize of competitors.Selected PrivateHand ToolCompaniesINDUSTRY STRUCTUREPrivate Company CharacteristicsPrivate companies that participate in the hand tool industry range from smallproducers, such as $5 million Zim Manufacturing, to large companies like $160million Klein Tools and $335 million American Tool. Some companies focus on aSAMPLE PAGEfew hand tools, as does $7 million Roseburrough Tool, a producer of professionalgradetile, masonry and concrete edge tools. However, most private firms offer arange of hand tools, due to overlapping production methods and markets. Oneexample is $60 million Olympia Industrial, which offers hand service tools such aswrenches, pliers, clamps, screwdrivers, nut drivers, awls, punches, measuring tools,files, trowels, hammers, various bars, mattocks, picks and diamond-shaped splittingwedges. In addition, the company produces edge tools (e.g., knives, chisels, axes)and saws, as well as power tools. Even much smaller firms are able to offer a widerange of hand tools, such as $10 million US Industrial Tool & Supply, a producerof hand tools for many users, including mechanics.Many private hand tool producers are diversified into power tools, and a numberoffer unrelated products as well, through various subsidiaries. For example, $15million Wright Tool, through its COUGAR product line, offers over 250 tools,such as hand tools, power tool attachments and tool sets, designed for medium-dutywork in construction, maintenance and assembly jobs. The company also producestool storage boxes. A more diversified company is $40 million RAF Industries, aninvestment company which owns and operates a group of middle market manufacturingcompanies in industries as wide-ranging as building products, millwork, lawnand garden tools, hand tools, home accessories, giftware and promotional products.Numerous private firms are able to compete in the mature hand tool industry byoffering specialized tools for smaller or niche markets. For instance, $10 millionUllman Devices manufactures specialty hand tools for professional automotiverepair and other general industrial applications. Products include inspectionmirrors, magnetic pick-up and retrieving tools, hook and pick sets, screw and nutstarters, socket holders and ratchet piston ring compressors. For bicycle enthusiasts,Park Tool, with over $5 million in sales, produces tools for brakes, chains,SAMPLE CHART* Sales are 2000 estimates of total corporate sales including products other than hand tools.Freedonia Private Companies ReportOrder form on last page7