STANLEY WORKS

---GLOBAL HANDTOOLS
MAKET
The Stanley Works, originally a bolt and door hardware manufacturing company located in New
Britain, Connecticut; was founded in 1843 by Frederick T. Stanley. A few years later, in 1857,
Frederick’s cousin, Henry Stanley, founded The Stanley Rule and Level Company. In 1920, The
Rule and Level Company merged with The Stanley Works and would go on to become its
famous Hand Tools Division.
Over the years, The Stanley Works has produced some of the most innovative and useful tools
ever made. Among these tools are the Bailey Plane, the Surform shaper, the PowerLock tape rule
and most recently the FatMax line of products. Today, more than ever, Stanley continues to be
an industry leader in tool innovation. In 2001, Stanley introduced more than 100 new products,
bringing to 400 the number of new products introduced in the past four years

The Stanley Works is an S&P 500 company and a worldwide supplier of industrial tools,
consumer products and security solutions for professional, industrial and consumer use. With
over $5 Billion USD in sales and 20,000 employees world wide, Stanley is the global market
share leader in hand tools with #1 positions in North America, Latin America, Europe and
Australia/New Zealand. Stanley is confident that our talented new team in India will deliver
similar market leading performance.

In the last two years of Stanley’s 165 year history, Stanley has produced record revenue and
profitability that well supports its commitment to entering new markets, including India.
Stanley’s Asia business is growing at record year-over-year rates and is also achieving record
profitability. While Stanley plans on learning even more about the Indian market, our time spent
with customers prior to this launch confirms that India is ready for a new level of quality and
service commitment -- the kind Stanley already delivers to customers world wide.

Stanley tools are used in construction, surveying, demolition, assembly lines and maintenance of
factories, machines, railways and aerospace.
 • Specialty/ergonomically designed hand tools
• Pro line of tools made of extra durable materials tough enough for the job site
• An assortment of products for the home mechanic and homeowner.

The most popular category of tools is hand tools. The tools, which are operated by hands, are
known as hand tools. Hand tool products do not need any electrical power to operate. Hand tool
products include a broad category of hand tools. Hand tool products are broadly used in all type
of industries. Today technology has become highly advanced but still the importance of hand
tools products cannot be ignored. In fact hand tool products are the backbone of all the
industries; no matter how advanced are the machines and technology used there. No industrial
process can be executed without using hand tools.

As machine can never replace importance of mankind the same way automatic tools can never
take place of hand tools. The use of hand tools is must in every kind of industrial job but
sometimes it is not promptly noticeable. Even if the entire process is executed by automatic tolls
and machine, then too hand tools are required for additional jobs like packing, finishing etc.
Furthermore the efficient working of machine is also dependant on hand tools. Hand tools are
essentially required for repair and lubrications of machines.

Apart from this they are widely used for home repairs, garages, electrical appliances etc. A kit
full of primary hand tools products may be easily found at any home. Hand tools are used to
execute very complex as well as simple tasks. Screwdriver is such a common hand tool product,
which is the part of every engineer’s tool kit as well as in every household. Spanners,
screwdrivers, pliers, clamps, riveters, wrenches etc., are used for tightening and riveting the
various screws etc.

Hand tool products are designed to carry easily. That’s why every vehicle has its own set of hand
tool products. It can be used in time of any breaking of machine where one does not find any
help. Hand tool is a savior in time of need. A kit of hand tools products is like a first-aid box for
machinery.

Present Hand Tools market in India:

With an average growth of 17% per annum of the hand tool market in India for the last 7 years,
India has a competitive advantage in the hand tool industry compared to other countries. The
factors that give an upper edge are

-Easy availability of raw materials

-Skilled labor at competitive wages

These factors have shown upon its effects by seeing the shifting of manufacturing units from
European countries to developed countries.

Present Hand Tool market in US:

The U.S. hand tool industry is estimated to be a $6.2 billion. Hand tool demand, including power
tool in the United States is expected to rise 3.1% annually through 2011, reaching $14.3 billion,
according to a recently released report. There are more than 1,000 firms active in the U.S. hand
and power tools industry, ranging from small, privately owned firms to major corporations like
Stanley Works, Bosch, Danaher and Snap-on etc. In fact these major companies accounted for
nearly 55% of the total sales in 2006.

The U.S. market for hand tools is growing rapidly, fueled by favorable trends in household
remodeling and renovation, do-it-yourself construction projects, and an increasing consumer
desire for products that are ergonomically designed and convenient to use. Major hand tools
marketers continue to heed consumer demand by releasing new products that appeal to users of
hand tools for a wide array of construction applications, including gripping and driving, and
cutting and edging. Meanwhile, big box retailers report strong sales of popular brand hand tools
and they continue to align themselves with leading hand tools manufacturers. This 2nd edition
report analyzes the trends in the U.S. hand tools market, including consumer purchases
distribution channels, end-user and the competitive environment. The report estimates current
revenues of the market and its future growth potential. We profile past, present, and projected
sales of hand tools on a product-by-product basis. The report also profiles major marketers, along
with manufacturer and retailer strategies used to maximize growth and profitability.
SBI’s research methodology involved aggregating, synthesizing and analyzing data from several
sources, including the U.S. government and several third-party syndicated market research data
suppliers. Historical data related to the manufacturing and distribution of hand tools in the
United States are culled from the U.S. Department of Commerce, the U.S. Census Bureau and
the U.S. Bureau of Labor Statistics. Analysis of these data, including market-level shipments,
imports and exports provide the foundation for our projections of overall market size and growth
during the next five years. Our projections also take into account data that indirectly affect the
growth of the hand tools market, such as information provided by the National Association of
Home Builders and the Home Improvement Research Institute. Simmons Market Research
Bureau is our primary source of data covering consumer trends in hand tool ownership and
applications.

Supporting Factors for the growth of the hand tool industry:

Hand tool industry is a growing one. Developed countries like EU, USA have already been
manufacturing and exporting hand tools since a long time. Developing countries like India,
China, and Japan are coming up. Some factors that are to be considered for the overall
development of the industry are as follows:

• Manufacturing centers should be equipped with the latest hand tool manufacturing
technology.

• For small, medium scale entrepreneurs in the developing areas, credit should be made
available to them at lower rates of interest.

• This industry is usually a part of hand and power tool industry as a whole. Hence, steps
should be taken to built up a Hand Tool Industrial Estate, exclusively for the Hand Tools
Units, in all countries.

• Labor laws of all countries dealing with hand tools should be made more investor
friendly, especially for small entrepreneurs.
Characteristics of the industry

• A labor Intensive Industry: A source of employment to many, hand tools industry is

basically labor intensive in nature, whose development is of great importance for a
competitive as well as a self-reliant industrial structure. The manufacturers of hand tools
produce a comprehensive range of hand tools, right from carpentry and plumbing tools to
striking and cutting tools.

• Energy intensive industry: Apart from being a labor intensive industry, this industry is
also an energy intensive one. It is estimated in a recent study that in most economies
adoption of energy efficient processes and technologies can yield in energy savings of up
to 30 to 50%.

• Effective contributor to the economy: Adding positively to the income of a country, hand
tools industry has contributed to economy in terms of development and technology up-
gradation.

Determinants of hand tools

This depends on the following factors:

• Price
• Supply chain dynamics
• Product quality, design and safety
• Service
• Environmental factors

Market Segmentation
Generally speaking, hand tools products are applied in the following market segments:

• Households (DIY)
• Professionals (e.g. carpenters, plumbers, craftsmen, toolmakers etc).
• Industries
Driving forces for hand tool development

Hand tools were in use since a long time and there has been a great change in the designs of hand
tools from time to time. There were many factors that led to hand tool development.

Workers safety & health:

This is a very important consideration in today's designing of hand tools. Hand tools should be
designed in such a way so that they reduce wear and tear on the operator. Ergonomics hand tools
have become very popular, driven by an increased emphasis on worker safety and health.
Workers nowadays prefer tools, which reduce stress on the body and at the same time reduce
employee time loss due to job-related disabilities. Today, designers are coming up with more
comfortable grips, reducing the weight of the object, and making hand tools adjustable to
different body types.

Chemicals

When tools are designed, manufacturers consider ergonomics, performance and the environment.
Besides considering health and cleaning factors, hand tools are also produced nowadays using
less chemicals, using less environmentally damaging products which are not harmful to the
human body and which becomes an environment friendly product.

Traditional tools

Despite new inventions in composition and designing, hand tools in original designs are still
preferred by many. As the old saying goes, the more things change, the more they stay the same.
Hand tools still are expected for many to perform in a way that is ageless. They may be sturdier
and more colorful, but their main function has never really changed. Even with new styles and
features on the market, users rely on traditional tools.

Cleaning

One of the driving forces for the change in hand tool has always been to make cleaning easier.
For proper functioning and durability of hand tools, it is necessary keep them clean after usage.
In most cases, the latest designs go for flexible handles which can be removed and cleaned
separately as both the handle and the tool blade are of different materials.

Hand Tools Standards

With the rapid advancement and expansion in the global trade, standardization of various
products is very necessary. The standards given to various products help in expanding
international trade which in turn bridges the quality gap between the manufacturers, suppliers
and buyers of different nations. In hand tools as well, standards play a vital role.

Standards are required in hand tools for the following reasons:

• They provide performance requirements.

• They provide safety requirements.
• Standards are available for all types of hand tools like pliers, screwdrivers, wrenches,
striking tools, torque instruments etc.
• These standards also include the various tests that are required to determine conformance
with the safety and performance requirements.