SBD's Update On Craftsman, DeWalt/Flexvolt

[HanShotFirst]

See http://phx.corporate-ir.net/Externa...9NjU2MjMwfENoaWxkSUQ9MzYyMzAzfFR5cGU9MQ==&t=1 ... Slide 7

All of "my" information has come from SBD's press releases, investor presentations, and earnings conference calls. They plan to spend $80 million adding capacity for the Craftsman rollout ... $35 million for a new "flagship" factory (that will be operational in 2020), and $45 million adding capacity to their other factories.

See also: https://www.garagejournal.com/forum/showthread.php?t=367384&highlight=craftsman

Whoa!!!

Craftsman is going into the manufacturing business?
Adding capacity to existing factories...Do they actually own factories, and are ANY of them in the US?

I have never heard of them owning a manufacturing facility. I recall back in the '90's reading that Sears/CM had invested money to help finance the building of a factory in Taiwan. They were basically loaning the money to one of their suppliers, who was then going to build to suit a manufacturing operation that would be staffed with Taiwanese workers, but the leadership and management would be American round eyes. But they didn't own it, the supplier did.

This is the first I've ever heard that Craftsman actually owns manufacturing.

 

[finn]

SBD owns factories in the US and abroad.

They bought the Craftsman brand name and distribution rights.

SBD will manufacturer some of the Craftsman branded products in their own existing or new factories but will continue to buy some products from others and sell them under the Craftsman banner.

No different than what Snapon does, except SBD was marketing and shelf space arrangements to make the Craftsman branded products readily accessible to the consumer.

Ps: Stanley was a supplier to Sears for Craftsman tools until the mid 80s, per Wiki.

 

[Finance Guy]

Whoa!!!

Craftsman is going into the manufacturing business?
Adding capacity to existing factories...Do they actually own factories, and are ANY of them in the US?

I have never heard of them owning a manufacturing facility. I recall back in the '90's reading that Sears/CM had invested money to help finance the building of a factory in Taiwan. They were basically loaning the money to one of their suppliers, who was then going to build to suit a manufacturing operation that would be staffed with Taiwanese workers, but the leadership and management would be American round eyes. But they didn't own it, the supplier did.

This is the first I've ever heard that Craftsman actually owns manufacturing.

Following up on Finn's comments, Craftsman does not currently have any factories ... my comments reflect SBD's plans for the Craftsman brand, which includes at least one dedicated factory. I laid out some additional commentary from management in the following post: https://www.garagejournal.com/forum/showthread.php?p=6796165#post6796165

 

[jakemac]

SBD stated that they plan on building a factory dedicated to manufacturing portions of the Craftsman line. Nowhere in their statement does it say that the Craftsman division of SBD will own that factory. I see the factory being held and operated by SBD with the factory manufacturing FOR the Craftsman label. So, Craftsman itself still won't be making its own tools. There is no reason that it needs to.

 

[6PTsocket]

Where they say they won't be manufacturing for the first year or two what's that mean....continue to sell Chinese **** to fund the making of the American brand. Stick the bill on the consumer instead of the investor. I can't stand it when companies do this. Put out a knowingly inferior product just to milk it until they can afford to make it right. Ford's guilty of that

It is not a given that foreign sourced product has to be inferior. Taiwan is capable of producing top quality product if that is what the buyer is willing to pay for. The most highly regarded small shop/ advanced homeowner table saw, that out sells all competitors is the Taiwan built SawStop. They have become a World power in machine tools. They make some top quality hand tools but if the buyer is price shopping they will make cheaper stuff, too. What SBD will source is an unknown. Most people only know they are buying Craftsman and some know it is from SBD but I don't think SBD will risk starting out by selling junk. If US made is your main concern, you will just have to wait a bit.

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[6PTsocket]

Sounds promising. Craftsman is currently branded as "Crapsman" on here and I believe SBD understand the amount of risks by the acquisition. I think they will "re-Americanized" by creating two tier products for levels of need (tech vs super-tech):

1. Made in Taiwan/China (Tech will get raised panel combo wrenches)
2. Made in USA (Super-Tech will get USA made long pattern combo wrenches)

Theyll probably get rid of the Evolve line.

From a quality standpoint, Taiwan is not China. Even China has upped their game. The cheap market is moving to India.

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[HanShotFirst]

It is not a given that foreign sourced product has to be inferior. Taiwan is capable of producing top quality product if that is what the buyer is willing to pay for. The most highly regarded small shop/ advanced homeowner table saw, that out sells all competitors is the Taiwan built SawStop. They have become a World power in machine tools. They make some top quality hand tools but if the buyer is price shopping they will make cheaper stuff, too. What SBD will source is an unknown. Most people only know they are buying Craftsman and some know it is from SBD but I don't think SBD will risk starting out by selling junk. If US made is your main concern, you will just have to wait a bit.

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VERY well stated. Taiwan can produce straight up world class stuff. For the US consumer the issue is perception...we perceive that ANYTHING that comes from Taiwan is inferior whether it is or not. And that perception tends to extend to most things that are made in the Pacific Rim. Its not until they have clearly demonstrated that they are truly superior products in the hands of professionals that they are accepted as top quality.

Look at Japanese cameras...it took years for them to get established; now everyone knows they're some of the best in the world. Same for Japanese cars & motorcycles (although perception on Japanese motorcycles still is a little bit of an issue).

I have a set of Proto JSCV reversable ratcheting wrenches, and I was quite miffed when I discovered they were made in Taiwan. But after putting them to hard use, I realized that COO isn't a factor with that particular set of wrenches; they really are world class. But for Craftsman to use foreign tools, they have a HUGE perception issue to deal with, and I think many will once again feel betrayed. It's a slippery slope.

 

[jgromada]

Agree with this 100%. I've worn out several CM screwdrivers, punches, and even a couple 12 pt sockets. Since they were worn out, I just bought new replacements. It never occurred to me to warranty them until I started visiting this site. I totally understand returning a product under warranty if it has a manufacturing defect. But expecting a free replacement for a product that provided years of service under use and abuse is just lame.

i have to come clean. The only Craftsman tool i ever broke was a 14 mm socket that i used with an impact gun. It broke right away and I had the audacity to march into Sears and demand my replacement. Guess what? They replaced it straight away.

I still buy some Craftsman to this day and not ashamed to admit it. Even got some new socket wrenches (72 teeth), they feel great and have worked great. The design of the handle really allows me to get great torque. It may be Chinese but it is well designed and I'm very satisfied.

I am happy they will be moving manufacturing here and I will probably continue to buy some Craftsman.

 

[jgromada]

From a quality standpoint, Taiwan is not China. Even China has upped their game. The cheap market is moving to India.

I do agree with you I do have some tools from India (and have seen others in stores) and they are absolute ****. This will probably change too.

At one point just about everyone bought American cars and then things changed , there were some pretty dark days in the early 70s. Now quality for American cars have improved markedly , I still don't own any but i might.

Getting back to tools I appreciate quality. Have a bunch of Proto pliers and they just feel great in my hands. Same for some Knipex i have too. Point is what will SBD build? Just coming from US is not good enough.

 

[jakemac]

.............. But for Craftsman to use foreign tools, they have a HUGE perception issue to deal with, and I think many will once again feel betrayed. It's a slippery slope.

To flush this out more -
Sears spent decades marketing the Craftsman brand as MADE IN USA ! (capital letters, exclamation point), even in the last 10yrs while they were importing junk. There was a certain amount of pride by the consumer that went along with owning Craftsman tools. It became a trust that Sears quietly betrayed. Most consumers had no clue that a mixed bag of imported tools were scattered around the shelves. The trust was that Craftsman was, and always would be, USA made.

Just look at the number of new members to GJ that are surprised to learn the news for the first time. After reading the forum they run to their toolboxes, only to discover that their cherished collections are infested with chineseium. Most of the general public still have no clue (or sadly, no interest) about how badly Sears betrayed the trust the original owners worked so hard to build.

This feeling of betrayal is something that the SBD marketing department will have to work overtime on if they expect to revive the brand in the hearts of caring consumers. With the "old" imported tools that will continue to infest the used market, it may take decades to rebuild consumer confidence. Or, the damage may be too severe to recover from.