SK Tools Manufacturing Might Be Staying in the USA

[M635_Guy]

I typically dispose of the boxes so I'm not real concerned about the configuration of them. It's the quality of the tool inside that I'm concerned with.

The point isn't the box or the quality of the tool. It's the wasted money for the company when the box costs vastly more than a small, padded envelope that would be just fine, along with FedEx shipping when "Free Shipping" generally indicates USPS/SmartPost.

I have to think someone is going to come in, look at how much they're spending with FedEx, see how much of that could be shipped in smaller/cheaper containers with less-expensive providers and make some adjustments. As a customer, that won't represent a take-away in any fashion.

 

[zendriver]

The point isn't the box or the quality of the tool. It's the wasted money for the company when the box costs vastly more than a small, padded envelope that would be just fine, along with FedEx shipping when "Free Shipping" generally indicates USPS/SmartPost.

I have to think someone is going to come in, look at how much they're spending with FedEx, see how much of that could be shipped in smaller/cheaper containers with less-expensive providers and make some adjustments. As a customer, that won't represent a take-away in any fashion.

I get a lot of stuff shipped that way.

Maybe even though the box is bigger it makes it fulfillment workflow go faster, makrs is harder to lose the shipment and maybe they get a special rate even using that size box.

Just guessing who course because I’m not an expert on Internet fulfillment.

certainly others are.

 

[M635_Guy]

I get a lot of stuff shipped that way.

Maybe even though the box is bigger it makes it fulfillment workflow go faster, makrs is harder to lose the shipment and maybe they get a special rate even using that size box.

Just guessing who course because I’m not an expert on Internet fulfillment.

certainly others are.

I've got some experience here (though it's a bit dated). But the math of FedEx shipping and the cost of the box would be (very) hard to overcome with an efficiency-of-consistency using boxes for everything. Even Amazon uses padded envelopes where they can, and their scale is probably the biggest of anybody.

 

[xtela]

Here is a 2019 factory tour video

Tour starts at 2 minutes ends at 10 minutes. Interesting to note the mix of modern and old machines.
2 years ago they were rebuilding a 1930's extruder.

Also note the government contract kits and industrial size wrenches. I think these sales determine SK's profitability. Plant overview from SK

 

[zendriver]

I've got some experience here (though it's a bit dated). But the math of FedEx shipping and the cost of the box would be (very) hard to overcome with an efficiency-of-consistency using boxes for everything. Even Amazon uses padded envelopes where they can, and their scale is probably the biggest of anybody.

I don’t know about everything but I have received rather small items from Amazon in a rather large box, with lots of air pillow padding

Maybe they were out of the small mailer’s

I guess my point is that maybe they are doing things for a reason that we are not aware of because we don’t know anything about their business

 

[1982fxr]

I don't think it's all that hard to move a facility.

I was alive in the 90s, they didn't have much of a problem shipping the entire ******* rust belt to Mexico.

 

[FMB4]

Well, I bid SK well. Don't have long time use/experience with SK sockets (besides a 3/8" drive SAE set), but my fully polished SK metric combo wrench set looks as good today is it did back in the mid '80s when new. Not a single SK combo has peeled a bit of chrome.

 

[bob15]

Small bags can get lost easier in shipping/transit than a small box.

I used to ship out small parts for work in with boxes for that simple reason.

 

[dnschmidt]

It does get them out from under IL's tax burden which is staggeringly high with no signs of it going away. SK is a long line of companies leaving the state. Not getting into politics but that is something that will benefit them. I'm curious if Ideal keeps the old new building or if GreatStar owns it but decided to sell it.

You think Pennsylvania is any better? We had fake license plates in PA that we put on the fronts of our cars "Pennsylvania Land of Taxes"

 

[M635_Guy]

I don’t know about everything but I have received rather small items from Amazon in a rather large box, with lots of air pillow padding

Maybe they were out of the small mailer’s

I guess my point is that maybe they are doing things for a reason that we are not aware of because we don’t know anything about their business

I mean...

 

[M6erfan]

Here is a 2019 factory tour video

Tour starts at 2 minutes ends at 10 minutes. Interesting to note the mix of modern and old machines.
2 years ago they were rebuilding a 1930's extruder.

Also note the government contract kits and industrial size wrenches. I think these sales determine SK's profitability. Plant overview from SK

I wonder if, now that they're China owned, it will affect their government contracts.

 

[xtela]

I wonder if, now that they're China owned, it will affect their government contracts.

I do too. It is probably spelled out in the bid regulations. Notice how the manager talked about quality control and the blizzard of government paper work to be done if a tool was missing or defective from a set. Also interesting about the wind testing of the case for sand intrusion.

 

[Xcursion88]

You think Pennsylvania is any better? We had fake license plates in PA that we put on the fronts of our cars "Pennsylvania Land of Taxes"

Yes it certainly can be...

Moreover in case you didn't know this if an area wants the new jobs bad enough they absolutely will give great tax deals for exactly that.

(Sony plant and VW plant in Western PA as examples)

 

[merkyworks]

If you were going to import materials/subassembly parts from over seas to a PA port. Then from a Supply Chain/Logistics point of view is would be less cost and time if the factory was in PA and not IL.

But as others have said we will just have to wait and see.

 

[neophyte]

Here is a 2019 factory tour video

Tour starts at 2 minutes ends at 10 minutes. Interesting to note the mix of modern and old machines.
2 years ago they were rebuilding a 1930's extruder.

Also note the government contract kits and industrial size wrenches. I think these sales determine SK's profitability. Plant overview from SK

That looked like it might have been a nice setup, and nice place to work.
It seemed much more competent than what I was expecting given some of the complaints about SK I’ve seen here.

 

[zendriver]

I mean...

so what?

I get stuff shipped to me like that often, last time from Cabelas.

maybe there is a good reason for it we are not aware of, since we normally don’t own a huge internet retailing business.

 

[M635_Guy]

so what?

I get stuff shipped to me like that often, last time from Cabelas.

maybe there is a good reason for it we are not aware of, since we normally don’t own a huge internet retailing business.

It's been about ten years, but I had a pretty significant part in a product-logistics-driven business. I suppose it's possible FedEx is giving them a commercial deal that charges them only for weight if they're sticking with boxes, but I doubt it. And the difference in cost between that box (which was the smallest one I've gotten to date) and something like an 8x8x8 or 6x6x6 is enough to think about. Between the cost of the box and the cost of the shipping (I get "Free" shipping), they're losing real money that isn't getting recouped anywhere (including the SK membership after a few months).

 

[dnschmidt]

If you were going to import materials/subassembly parts from over seas to a PA port. Then from a Supply Chain/Logistics point of view is would be less cost and time if the factory was in PA and not IL.

But as others have said we will just have to wait and see.

Nearest container port is Norfolk, VA. Very easy access from central PA.

 

[Raineman]

Nearest container port is Norfolk, VA. Very easy access from central PA.

Philly, Baltimore, New York ????

 

[dnschmidt]

Philly, Baltimore, New York ????

I don't think those can handle the larger container ships (deep enough water) whereas Norfolk can. In any respect Williamsport, PA is sure as hell closer to the ocean than IL is.

 

[Flared Base]

I wonder if, now that they're China owned, it will affect their government contracts.

There are fairly easy ways around that. For example, make it a public company where all the shares happen to be owned by Great Star and then have an autonomous board that is US based and you should be compliant to most government contracts that have domestically sourced requirements.

 

[Raineman]

I don't think those can handle the larger container ships (deep enough water) whereas Norfolk can. In any respect Williamsport, PA is sure as hell closer to the ocean than IL is.

Not trying to change the subject, 6 east coast ports list a 50 ft. channel (including Norfolk and the ones I listed). Maybe the ceiling is the difference, but all are listed as container ports. But, agreed, better east than west or central US.

 

[Wrench97]

so what?

I get stuff shipped to me like that often, last time from Cabelas.

maybe there is a good reason for it we are not aware of, since we normally don’t own a huge internet retailing business.

It's harder to lose a box than a envelope, remember these are going Fedex Ground/Freight not Fedex Express different companies different trucks, drivers and facilities.

 

[zendriver]

It's harder to lose a box than a envelope, remember these are going Fedex Ground/Freight not Fedex Express different companies different trucks, drivers and facilities.

Maybe they figure that people will ***** about it less showing up in a big box, than they would if it didn’t show up at all.

seems to be the theme

 

[Xcursion88]

so what?

I get stuff shipped to me like that often, last time from Cabelas.

maybe there is a good reason for it we are not aware of, since we normally don’t own a huge internet retailing business.

There is a good reason....cost and time...

Instead of buying 10 different box sizes you buy 2. Big which fits most of your products and a bigger for the biggest of your products.

You order in 1,000 boxes or more at a clip (where ever the price break is) of the size you will use the most...then again however many of the next size up to hit that price break.

Two choices for packing make it self explanatory...less space of inventory of many different boxrs/envelopes slimmed down to just two. Large and extra large.

Moreover....it's just simply a sheet of cardboard here they fold up, tape up and send.
The cost of cardboard compared to envelopes with adhesive, etc... if the cardboard piece isn't cheaper the difference is negligible.

It's harder to lose a box than a envelope, remember these are going Fedex Ground/Freight not Fedex Express different companies different trucks, drivers and facilities.

This has nothing to do with the above.
There are items sent everyday in envelopes...some of which are secured documents etc...licenses, certified stickers, things like that...and they don't get lost.

These companies MUST be on point with that **** or big trouble will ensue.

It's just a simple matter of buying in bulk a box size that will fit most evrrything you sell. You buy the boxes (flat sheet of cardboard) at a good price but ordering the motherload...(cheaper) then less time packing it up as the packer doesn't waste 30 seconds finding the "right size" whatever to ship it.
No.
Someone grabs the cardboard sheet, folds it to be ready...
the picker gets the order in hand...finds the item(s) and place in box with the order sheet.....(box left open)....the last step is the packer double checks the item(s) versus the order form...all good it gets it's final sealing and shipping label slapped on and set by the side door for UPS or FedEx to pick it up.

 

[FMB4]

I agree that 'the bigger the box the less likely that it will 'fall through the cracks' when it comes to FedEx, UPS, and other 'bigger item' shippers. The above shipping companies do not specialize in shipping envelopes. Sure, they may ship envelopes, but doing so is not their specialty.

 

[M635_Guy]

I agree that 'the bigger the box the less likely that it will 'fall through the cracks' when it comes to FedEx, UPS, and other 'bigger item' shippers. The above shipping companies do not specialize in shipping envelopes. Sure, they may ship envelopes, but doing so is not their specialty.

Wut? They deliver massive numbers of envelopes every single day through both their air and ground networks.

For things like the free shipping of the "Socket of the Month" club, a USPS ground/base shipping in a padded envelope is probably going to cost far less than any ground box shipment from anyone. The production cost of the socket might well be less than the cost of the box.

 

[Wrench97]

Wut? They deliver massive numbers of envelopes every single day through both their air and ground networks.

For things like the free shipping of the "Socket of the Month" club, a USPS ground/base shipping in a padded envelope is probably going to cost far less than any ground box shipment from anyone. The production cost of the socket might well be less than the cost of the box.

Do not confuse Fedex ground and Fedex express they are different companies, different fleets, employees and methods.
In fact Ground drivers are not employees of Fedex they work for indie contractors.

 

[M635_Guy]

Do not confuse Fedex ground and Fedex express they are different companies, different fleets, employees and methods.
In fact Ground drivers are not employees of Fedex they work for indie contractors.

I'm well aware of the acquisition that became FedEx Ground. What does that have to do with anything?

 

[merkyworks]

There are fairly easy ways around that. For example, make it a public company where all the shares happen to be owned by Great Star and then have an autonomous board that is US based and you should be compliant to most government contracts that have domestically sourced requirements.

But spyware installed in sockets and ratchets will be able to report how many turns a bolt/nut has on a F-22 Raptor or B-2 Bomber

 

[dstblj52]

I'm well aware of the acquisition that became FedEx Ground. What does that have to do with anything?

ground handled envelopes much much better than air is the general concenus

 

[Xcursion88]

I agree that 'the bigger the box the less likely that it will 'fall through the cracks' when it comes to FedEx, UPS, and other 'bigger item' shippers. The above shipping companies do not specialize in shipping envelopes. Sure, they may ship envelopes, but doing so is not their specialty.

Uummm, no.

I get certified state documents every week in an envelope. If they lost one it would be doomsday for them from the state.

Size has nothing to do with it. See above. I laid out the very simple reason why the big box.

 

[Xcursion88]

Do not confuse Fedex ground and Fedex express they are different companies, different fleets, employees and methods.
In fact Ground drivers are not employees of Fedex they work for indie contractors.

But they still represent....

 

[dscheidt]

It's been about ten years, but I had a pretty significant part in a product-logistics-driven business. I suppose it's possible FedEx is giving them a commercial deal that charges them only for weight if they're sticking with boxes, but I doubt it. And the difference in cost between that box (which was the smallest one I've gotten to date) and something like an 8x8x8 or 6x6x6 is enough to think about. Between the cost of the box and the cost of the shipping (I get "Free" shipping), they're losing real money that isn't getting recouped anywhere (including the SK membership after a few months).

The fulfillment company I worked for a couple decades ago had a UPS contract that waived dimensional weight on packages less than a certain size (the details have gone fuzzy, maybe a 1 cubic foot, with a max dimension). The most commonly used size was about 10x8x6, and weighed about a pound. It was cheaper to send it UPS anywhere it in the 48 states than it was to send it same zone USPS. They had a certain item that was so common it was warehoused already packaged in that box, just slap a shipping label on it. Cheaper to send two boxes than pack them together from the loose stock. (they did a study on that, timing the work.)

 

[dstblj52]

But they still represent....

to the public sure but they often bid against each other for contracts

 

[scooby074]

The fulfillment company I worked for a couple decades ago had a UPS contract that waived dimensional weight on packages less than a certain size (the details have gone fuzzy, maybe a 1 cubic foot, with a max dimension). The most commonly used size was about 10x8x6, and weighed about a pound. It was cheaper to send it UPS anywhere it in the 48 states than it was to send it same zone USPS. They had a certain item that was so common it was warehoused already packaged in that box, just slap a shipping label on it. Cheaper to send two boxes than pack them together from the loose stock. (they did a study on that, timing the work.)

This is the answer to the box question. My company (industrial sales) ships just about everything we sell. We have exclusive arrangements with certain couriers who give us amazing prices. Box size does not play a part (until you getquite large). Weight doesnt even change things that much for up to 20-30? lbs.

Stocking only 1 or 2 box sizes increases efficiencies. Cardboard cost is negligible. Workflow for packaging only having a couple sizes is more repetitive and streamlined. Bags dont work because they tear and dont protect like cardboard + dunnage. We tried them. Cardboard wins by far.

Looking at it from a consumer perspective it seems more expensive, and it would be if you didnt have a courier account.

 

[Dzmax77]

Here’s the hard reality, w/o major investments in new machines and robotics, US labor costs will be too high to compete with any Chinese production. Chinese have a leg up on capacity, robotics and cheap labor which makes any further investment in the US unnecessary when cheap production and capacity exists in China. They won’t pump more $ into SK, they’re apparently already reverting to CCP made drivers. Next will be pliers.

The only thing the CCP might keep making here are the sockets, ratchets and wrenches. Probably because of the steel quality needed to sell at a high price point still requires US or Canadian Steel. By Xmas, we’ll start seeing SK pliers made by the CCP that look identical to some Kobalt and Craftsman ones Great Star already makes for them.

 

[dnschmidt]

Why do you guys keep beating this dead horse. As Dandy Don Meredith use to say on Monday Night Football: "Turn out the lights the party's over."

 

[bob15]

Here’s the hard reality, w/o major investments in new machines and robotics, US labor costs will be too high to compete with any Chinese production. Chinese have a leg up on capacity, robotics and cheap labor which makes any further investment in the US unnecessary when cheap production and capacity exists in China. They won’t pump more $ into SK, they’re apparently already reverting to CCP made drivers. Next will be pliers.

Have pictures or facts or are you just interjecting internet BS?

 

[Farmall450]

It'll never happen. B&M stores don't want precious shelf space allocated to premium priced/slow moving SKU's that 99% of the buying public won't buy. The typical US consumer has a love affair with cheap tools from China and that's what B&M delivers. The few B&M stores left that sell tools are all in bed with their favorite/well recognized brands that they've already spent a bundle promoting.

SK's only hope is a strong online presence to pros and enthusiasts. I've always thought some pro grade tool company should offer free overnight shipping. That could take a bite out of tool trucks. The other issue is that SK's offering is pretty weak. SO has an extensive "one stop shopping lineup" for the pros. CM has an extensive product offering for the DIY/homeowners. SK is hardline tools only with a weak channel. I don't see a scenario where GS would invest to billions to re-invent SK.

With any volume, free shipping of hand tools would be reasonable. Similar to SO -- used to be anything under $500 or whatever was free, I see they've now flipped that around with exclusions.