Economy's Effect On Tool Sales?

[duke5572]

Does anyone know of/have access to data regarding tool sales?

I would be curious to see the balance sheets of various tool corporations.

I realize it's often difficult to seperate the "tool" bottom line from the "rest of the subsidiaries we own" bottom line, but it might be possible.

I'm especially interested in recent figures from "higher-end" tool companies vs. "common-man" tool companies.

Outright fabrications and conjecture are also welcome!

*No particular tool companies were mentioned in the composing of this topic. Please note this.

 

[TRTOOLSUPPLY]

From talking to WRIGHT tool, sales are up a little.This could be due to spring weather and maint. work at industries they sell to such as power,mining business.

Richard
TR TOOL SUPPLY
"you don't have the WRONG tool,You just don't have the WRIGHT tool"

 

[Mike83]

You can monitor the stock value of any publicly traded tool manufacturer. There is one in particular that starts with an S and end with an On. Most of the others are privately owned I think.

 

[The Muffin Man]

You can monitor the stock value of any publicly traded tool manufacturer.

Higher stock value doesn't always translate to higher volume of sales. Though you could dig up sales volume from quarterly reports .

The higher sales of used cars could influence the sales of tools (for automotive tool companies of course.) I wouldn't be surprised if sales have gone up higher now than a couple years back, but that's just my speculation.

 

[skeletonizer]

I know of one Matco guy that just lost his truck. Not sure if it was poor sales or bad decisions or both.

I suppose a guy can have a good route and still lose his a$$ if he is a dudda.

 

[Chris Adams]

I think there is more activity in tools lately. HF is so busy that I'm avoiding them. Lines and crowds are not my favorite things.

Seeing lots of activity on the tool lines at the swapmeet and the local truck guys seem to be out and about more than say last year.
Of course around here thousands of people are into refurbishing houses and that may be driving some of it.

 

[duke5572]

I think there is more activity in tools lately. HF is so busy that I'm avoiding them. Lines and crowds are not my favorite things.

Seeing lots of activity on the tool lines at the swapmeet and the local truck guys seem to be out and about more than say last year.
Of course around here thousands of people are into refurbishing houses and that may be driving some of it.

Agreed re: HF. Last time I went in there I could barely move. Couldn't tell if it was all tire-kickers or people buying things. Saw one guy loading up two carts with automotive-related tools, presumably to start/stock a shop. Note to self: avoid that guy's shop.

As far as the truck guys go, it's hard to tell if they're actually out and about more and selling tools or just out hustling for every last buck---something many of them haven't had to do in the past. Hopefully this presages an improvement in customer service among truck guys; I know a lot of the members here are dissatisfied with the service that they get (or don't, in most cases).

The house refurbishing thing---I think the economy has forced most of the jokers/HGTV wanna-bes out of the market. That said, I think there will be more remodeling going on in the next few years, both by professionals and homeowners. You'd think that would help tool sales, but it's hard to say if it would be more sales than a home-building market vs. a home-remodeling market.

Interesting commentary so far. I'd enjoy seeing more views on this.

 

[Chris Adams]

On my statment about the trucks, no they are doing more business. That is based on two conversations with a Snap-On guy and two with a Matco guy. However, I think they are doing a bit of discounting.
I was trying to get a line on a 54 inch top box, but none of the guys I talked to had any, expected to repo any.
And were busy while I was talking with them.

 

[Fedwrench]

I visited my Matco Dealer the other day. He's not doing well. His truck isn't as stocked as it used to be. He told me he's lost about a third of his route due to shop closures. This guy used to be number one in toolbox sales but, now doesn't even have a box on his truck to sell. while on his truck, a tech came out saying he couldn't pay anything this week but, would try to next week. The dealer told me that that's all he hears everyday. I think it's tough for the techs and the tool dealers. If the techs aren't flagging hours, they're not going to buy expensive tools and will try to get by with what they have. I know there are reports of people not buying new cars and fixing up their old cars but, I'm not seeing it in my area. I'm seeing more heaps on the road without needed repairs. The dealers I take warranty work to are happy to see me. Their shops are real slow.

 

[crashbumper]

I am not in the best financial situation myself I'm not losing the house or my car, but things are tight and I have gone through layoffs and pay cuts.

I have noticed that since finding this site I am buying tools more frequently, and not just automatically going down the street to HF.

Partly because, when someone is selling a name brand tool for $5 or $10, I look at it and think "Well shoot $5 ain't bad, I might as well but it so I don't have to make a trip to the store"

My HF visits are less frequent because I am trying to wait and see if something pops up on here first.

 

[Merkava_4]

Outright fabrications and conjecture are also welcome!

In that case, can I ask you who that girl is in your avatar? I find myself staring at her with my tongue hanging out most of the time.

 

[wantedabiggergarage]

Our Mac man, hasn't had much on his truck for some time. He appreciates business and getting paid. A lot of homecenters are/were having problems, but since spring and spring fever is hitting, sales are happening and some is going up. There are still a lot of people who owe so much credit card debt, that they are trying to pay it down, and then they start fixing their own stuff, and tool buying. (see it every economic turndown, had a relative go through it after some year+ medical issues).

Some sales are up, due to higher thefts. Yet I have heard Pawn shops are paying less, since they are getting flooded. I have also heard about them bypassing some of the legally required mechanisms (determining if goods are stolen). I've seen lots of former builders, selling off tools, and some becoming remodelors. Then some of the former Remodelors, are selling off tools, as they are losing business to the former builders. I see a lot of overpriced stuff on CL, that makes me believe, people are now trying to sell what they financed, in order to pay their cc and loans. There is a Snap-on man that technically has our shop, yet he has YET to stop there (even after trying to flag him down). So he must not need the business.
Locally, I think the secondary market is up, but the primary market is mixed.

 

[cashishift]

i'm buying more.. but not from trucks..

 

[daveblank]

I visited my Matco Dealer the other day. He's not doing well. His truck isn't as stocked as it used to be. He told me he's lost about a third of his route due to shop closures. This guy used to be number one in toolbox sales but, now doesn't even have a box on his truck to sell. while on his truck, a tech came out saying he couldn't pay anything this week but, would try to next week. The dealer told me that that's all he hears everyday. I think it's tough for the techs and the tool dealers. If the techs aren't flagging hours, they're not going to buy expensive tools and will try to get by with what they have. I know there are reports of people not buying new cars and fixing up their old cars but, I'm not seeing it in my area. I'm seeing more heaps on the road without needed repairs. The dealers I take warranty work to are happy to see me. Their shops are real slow.

Your distributor has his own problems. 1st, he can't live off his inventory. He needs to keep his truck stocked. 2nd, how can he sell boxes if he doesn't have any? Even if it's a small box, he needs one on the truck. If you were in the market for a box & he didn't have any for a few months but his competition did, who would you be most likely to talk to about buying one?

 

[Rickster]

Tool sales are up! But I don't know if thats because I got off my duff and started posting more stuff or if everyones giving the used tool market a second look.

 

[Major Ramifications]

Power tool sales are suffering. Dewalt's sales are WAY down, and our Dewalt rep got laid off recently. The Hitachi guy said that sales slacked off so much that he laid off half of his staff.

 

[HandyManny]

I don't buy much anymore, but when I do I look for quality at a good price. Of course that's the way I have always done it. This has yielded me great quality tools without ever going broke or getting in debt. I have also mostly opted for plain finished steel or black oxide finished steel as opposed to Chrome plating. You'd be surprised how much money this option saves you. Hence most of my Proto tools are (or were when new) black oxide finished.

That's just my philosophy, like it or not. I believe your tools should help you make a living and earn you money, not keep you in debt past retirement.

 

[HandyManny]

Power tool sales are suffering. Dewalt's sales are WAY down, and our Dewalt rep got laid off recently. The Hitachi guy said that sales slacked off so much that he laid off half of his staff.

Interesting how lately I see lots of carpeneters, general contractor, and plumbers with less expensive Ryobi power tools these days. Starting to see lots of Craftsman power tools as well. Times are definitly changing and fewer people in the trades today are willing to shell out mega bucks for certain tool. I also see a lot of Husky hand tools in use as well.

 

[paramudduck]

I just posted this on another forum so I'll just c&p the post here.

Snap-On 1Q Net Down 36% As Volume Falls; Warns Of 2Q Drop

http://www.nasdaq.com/aspx/stock-ma...1q-net-down-36as-volume-fallswarns-of-2q-drop

With a 36% First quarter drop and warnings of a larger second quarter drop.

"Snap-on is suffering as the recession and tight credit markets crimp demand, hitting sales of higher-priced items such as tool-storage and vehicle-repair equipment especially hard."

"Profit at its biggest business, the commercial and industrial segment, plunged 53%. Sales dropped 27%, or 18% excluding foreign exchange, amid lower sales of professional tools in Europe."

 

[Jeepguy]

This thread hits close to home for me personally, i work for an industrial supply house (that gets continually bashed on this forum), compressors, tools, finishing equipment etc... what we have heard from most vendors, Milwaukee, Graco, Quincy, CP, DeWalt, you get the idea. is that new tools and capital equipment is on a severe downturn, but service, repair, and warranty is way up. we have been hit hard around here companies going under, cutting back production, and just flat out freezeing purchases. In my insider opinion you will see a lot of tool Mfgr's getting purchased and combining lines. i think milwaukee will get sold to the highest bidder. and i also think that MAP pricing (manufacturer advertized pricing) will become so strict that the big box stores will be forced to stop just giving tools away at way under purchase price. right now manufacturers are just trying to empty their warehouses. although with all of the worry the mail in rebate deals have been the most agresive i have ever seen.

 

[Major Ramifications]

Jeep Guy, do you work for Northern Tool? I have never bashed them. They have a lot of cool stuff.

Also, you reminded me of the MAP pricing situation. I know that Dewalt has recently been doing some major cracking down in this area. If you every wonder why sometimes a website asks you to add the item to the cart to see the price, that is why. We are not allowed to advertise a price lower than MAP.

 

[HandyManny]

Probably Fastenal. I hear a lot of people these days are fed up with Fastenal.

 

[Jeepguy]

i do not work for northern tool, fastenal, granger, or any big stores, we are a small area established store with a dis associated store front website. I dont want to say who i work for but we are bassed in PA with multiple locations around the state, and in VA.

Yes DeWalt has cut off 3 big Million dollar accounts in our area because of MAP pricing violations... we on the other hand still havent seen an uprise in DeWalt business because lowes and home depot are exempt (for now) from that MAP pricing. so the mom and pop loyals are going there to get their stuff now, what they dont know is that lowes and depot rely on places like ours to do their service and repair and they could cut out the middle man by just coming straight to the source. its a vicious circle. we will never go under ( i hope ) but we cant keep the big buyers from the big box stores. Black and Decker as a whole will be cracking down on MAP ver soon. so say bye bye to all of those great porter cable, and delta deals from your mom and pop distributors.

Fastenal used to buy Milwaukee exclusively through us, but have now gone direct, but they are feeling the economy the worst of any of those type of stores, they have cut back on stock, and taken lower discounts to be able to buy direct instead of taking advantage of sub distributors like us.

 

[HandyManny]

Fastenal used to buy Milwaukee exclusively through us, but have now gone direct, but they are feeling the economy the worst of any of those type of stores, they have cut back on stock, and taken lower discounts to be able to buy direct instead of taking advantage of sub distributors like us.

Take a look at the new Milwuakee power tools. The sawzall is the only one still being manufactured in the USA, everything else from them is foriegn made. That really speaks to the situation and cost of domestic made products.

 

[Jeepguy]

heres some more about milwaukee, the new Craftsman 12V line is made by... you guessed it Milwuakee. the only difference is the battery pack is slightly different so you cannot interchange the two. BS in my opninion. its a subtle way of monopolizing the tool biz. Black and decker has been doing it for years now everyone is following. Snap-on doesnt really make anything for themselves anymore, power tools are made by Sioux, hand tools by Williams. tool boxes by williams. only their specialty tools are still made by them. the only US manufacturer staying strong is Dynabrade, they are still making everything in NY, you have to give them credit for not giving in to the economy.

 

[HandyManny]

I believe it. But when that Craftsman 12V tool fails, the owner will jump on this thread and bash every power tool from Craftsman, and state he will only buy Milwaukee power tools from now on, not knowing they are made by Milwuakee. Funny funny. I know that a few years ago some of the Craftsman Professional bench griders were just rebranded Delta grinders. Side by side compared only the lables differed, beyond that they were identical grinder. That happens with a lot of companies. I always laugh when I hear someone trash a certain pedestrian brand and exhonorate a professional brand over it when in many cases the pedestrian brand is made by and just a relabled pro brand.

Since Snap-On closed some of their plants recently I'm not at all surprised that they are sourcing from their subsidiaries. But Williams does make some damn fine hand tools. I even liked the older first run of Williams made Kobalt tools before Lowes got exclusivity on them and contracted with Dahaner.

In another areana, take a look at gas powered lawn mowers today. My Toro mower uses the exact same Briggs & Stratton engine as do mowers from Craftsman, Snapper, Troybult, and many others. Only the ****** is Toro on that mower.

 

[Jeepguy]

I had a job for compressed air piping to go into a plant called MTD products. after some asking around i did about that company i find out that they manufacture all troybuilt, toro, lawnboy.... pretty much everything but honda, and craftsman. its just kind of crazy how many brands are made at the same no one factory in the same nowhere town. it just goes to show that everything is exactly the same difference.

 

[ultgar]

Stanley Tools announced 42% drop in Net Income today.......see http://online.wsj.com/article/SB124057538074352639.html

SD

 

[duke5572]

A lot of interesting perspectives here! This is exactly what I was looking for.

On a related note, does anyone on the forum have a vested interest in any publicly traded companies? It seems like tool guys would invest in toolmaker stock given the chance. And I know there's some folks on here that are financially well-off.

I understand that a lot of people are protective of how they invest their money, but any feedback would be really interesting.

Thanks!

 

[Jeepguy]

We just got an Update from IR last friday, they are starting to bring a lot more air tools in house to become Made in USA products again, the 2135TIMAX, 2115TIMAX, pretty much all of the impacts and ratchets will become US made again. they are also expanding the TImax line to 3/4" and 1" guns. pretty exciting if you as me. they still said that times arent good, but i think they are taking the necessary steps to make the times good again. They also admited that they have spent so much time on their new found heating and cooling business that they lost focus on their real bread and butter.