Small Business Idea

[Wyatt183728]

Hello, Im new here, have been lurking around for a little while. Ive been looking around for the past fiew years, and have noticed less and less tools that say ‘Made in USA’ on them, and more and more people saying they want that stamp on their tools. Ive been thinking about starting a smaller company that makes USA made tools. I was wondering what your thoughts on this are, and if you could reccomend any tools you would like to see made in USA? I am open to any input, and any is welcome. Thanks


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[ssdave]

The reason people want "made in USA" is twofold:

Primarily, they expect a better and more consistent quality level for USA made.
Second, they believe in supporting USA jobs/business.

So, the question is, what kind of tool can you produce for a competitive price that has quality that is above and beyond the Taiwan and China stuff you see available? An associated question would be, what tools do the members here see that the Taiwan and China made stuff is not of good enough quality?



If you can consistently produce and market a high quality version of those tools, at a somewhat competitive (not lowest) price, you will have a market. Keep in mind that you have several very sophisticated competitors. Those include Snap-on (and Williams), Wright, SK, Cornwell, Proto (Stanley/Black & Decker). You'll have to substantially underprice them to get a toehold in the market. Or, come up with a unique and useful and high quality tools that they don't currently produce. If you can do that, you should directly market yourself to Snap-on or Stanley Black and Decker as an employee. They should pay you well if you have those capabilities.

Most tool production requires large scale forging capabilities. So, you might be best served to do precision tool manufacturing, focusing on tools that can be made in a machine shop with CNC tooling, out of manufactured materials rather than raw materials. That would lower the start-up costs and scale of the business by a huge step.

Most small production shops focus on a niche product, generally invented and produced by an enthusiast with a specialty in something specific of interest to them.

I make and sell a small product, for a very niche market. My costs are low, my skill level is high in that one item, and I make and sell a few hundred a year. It does not, and will never, substantially increase my annual income. The good side of it is that nobody will ever compete with me on it; the learning curve to produce the item is such and the market is so small that no-one will invest either in the skill to compete at my price, or the machinery needed to automate the production and lower the cost.

 

[kctyphoon]

I believe you would be swallowed whole by the bigger companies.. especially with craftsman production supposedly being brought back to the states.. just a bit of a reality check.. consider this - most companies don't MAKE tools.. they hire another company that ALREADY makes them, and has them rebranded.

 

[Wyatt183728]

I believe you would be swallowed whole by the bigger companies.. especially with craftsman production supposedly being brought back to the states.. just a bit of a reality check.. consider this - most companies don't MAKE tools.. they hire another company that ALREADY makes them, and has them rebranded.

You are right that I would be buried by the big guys, and I did give some thought to having another company make my tools for me, like Danaher Co. I like what was mentioned in the first post, regarding specialty tools. I might look into both options a bit more.


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[catalytic]

I collect, use, and restore (almost) exclusively USA-made tools and machines (except for Bessey clamps from Germany and some Mitutoyo digital mics/calipers).

So I am your biggest fan.

That said, I wouldn't want to be in that business to make money. If, as you say, all of us want USA-made quality tools, but the vast majority of thousands of tool manufacturers outsource anyways, then there must be pretty market strong incentives NOT to produce domestically.

The ones that survive here -- say, Wright for hand tools, Burr King for machines, etc. etc. tend to have long established reputations and, in the case of the latter, a sort of niche market.

There are a few mfg's that are new to the scene and make tools domestically, but I rarely see them succeed after a few years, much less grow/flourish.

At the end of the day, making tools requires a lot of machinery and capital to produce an item that will probably have a very small margin (unless you are highly specialized). I absolutely applaud those who succeed in this space, but I don't envy them.

 

[derosa]

F-clamps for woodworking, I've often wondered what the start up for it might be, just a basic range to start with. Seems all of them are Chinese now.

 

[Wyatt183728]

F-clamps for woodworking, I've often wondered what the start up for it might be, just a basic range to start with. Seems all of them are Chinese now.

Doesnt seem like a bad idea at all, will definitley look into it. When I look up usa made clamps for woodworking I got articles on the demise of us clamp manufacturers.

 

[jonesg]

Doesnt seem like a bad idea at all, will definitley look into it. When I look up usa made clamps for woodworking I got articles on the demise of us clamp manufacturers.

I'm thinking of selling stickers.
Made in the USA.
What you put them on is non of my business.

 

[derosa]

Doesnt seem like a bad idea at all, will definitley look into it. When I look up usa made clamps for woodworking I got articles on the demise of us clamp manufacturers.

My understanding is the most recent inheritors of the Pony/Jorgensen line were lazy and just wanted a cash cow so they handed control over to company that first moved production to china and then sold it out from under them. Every Home depot I walked in would have about 70-100 F clamps ready to sell in 6 or 7 lengths, and 3 different weights. Really there are only 6 different castings; the fixed end and the sliding piece and both in either standard, heavy or light duty. Size was just determined by the length of the bar. I suspect it isn't a lot of tooling just really expensive tooling, I also tend to believe there's more then enough market to keep a small shop working non-stop. Though maybe more money but make the bars in stainless so they don't stain the woods and eliminates a finishing step.

 

[Indexmill]

Sorry to be the barer of bad news; you don't have a chance...

Great thought, but no chance to startup a Made in USA hard tool factory today and make any money. Can't possibly happen.

 

[ssdave]

If you want a decent moneymaking production idea, look into getting a CNC, multi-axis abrasive waterjet cutter. You can use solidworks or similar program to make 3d models of the part you want to make, and then cut it out within about .005" with a 2 to 3 degree kerf deviance angle. Great for making flat springs out of pre-tempered steel, for making machined shapes out of 4140 prehard, etc. What you can do is make parts for one-off or limited production runs. The money is good for small runs, and you're selling a valuable skill, namely, the cnc programming from the solidworks model.

Startup costs will be less than a tool factory or shop, materials and expendable costs lower, and rate of pay will be higher.

If you do well with this, then branch out by investing in a wire edm, which will expand the capabilities.

 

[Wyatt183728]

Thanks to derosa’s comment on clamps, Ive designed a very low manufacturing cost high strength F clamp that I could make in my small shop and hopefully gain a profit from. The design is simple, and an all metal construction that would ensure strength and dependability. Hopefully I will have a prototype in the next week or so. It is a pretty slim market, but I think it has a chance at being profitable.


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[kctyphoon]

Think it would be easier to sell made in the USA beer..

 

[Jimithing616]

This, what your thinking of doing, is being done by quite a few guys in the woodworking world... think bad axe toolworks and their amazing handsaws (there are also about 5 more American handsaw makers doing really well working out of their garage doing small outputs) Lake Erie and benchcrafted make woodworking vices, woodpeckers and their short run tools as well as their normal line up do well, Lie Nielsen for their planes, chisels and everything else Stanley used to make (although LN & Woodpeckers are larger companies than the others mentioned) and I know of maybe a dozen more... they all can barely keep stock of their wares... they have nearly doubled their prices too since they started out, of course the product has been refined, but, honestly they charge so much because they can get it... people in the woodworking world eat that stuff up...

Now, will you get that same respect in say the mechanics tool world... I don’t know, there are still quite a few made in USA brands still in that world that have been in it for decades or a century even.... in the woodworking world that’s not the case... all the good woodworking tool brands like Stanley or Disston no longer produce quality tools In The USA so there was a huge void to fill.... does that void really exist in the mechanics tool world? That’s for you to figure out...

In my opinion, looking at it from industry wide point of view, there isn’t such a void, there are plenty of USA made mechanics tools, it’s just no one loves paying the high prices for them... really the void in made In made In USA tool market is the one craftsman left when it stopped making AFFORDABLE tools in the USA.... and can you really produce tools in the USA at that kind of margin? On a small scale? Not likely...

So... if your gonna do it, you’d need to come up with a great and useful tool to produce that proto or SK or whoever don’t already make or don’t make well... and do it better.... market it well and hopefully get the “I want to support this small time maker of a great tool” sentiment that a lot of guys are willing to give to a small outfit like yourself making quality tools in the USA... But will that goodwill be enough to carry you to the point of profit and having it be worthwhile.... who knows... that is why what you offer truly needs to fill a void. If that’s not the case. Then I’d imagine your success will fizzle once the novelty wears off...

Just my 2 cents based upon what I’ve seen in the woodworking world over the last 5 years especially... it’s a model that, in the woodworking world, has worked out really well for a lot of guys... but, as I’ve said a lot now, there was a void to fill there.

As always, go into something like this cautiously as new businesses fail more than They succeed and on the other side of the coin I also know of quite a few guys who were making things like, in one case, super custom hand planes who fell behind in their promises of delivering tools to folks, ended up going bankrupt and left a lot of angry guys out of a lot of money and left with nothing but a bad taste in their mouth and lighter pockets....

I wish you all the luck though. I’ll buy one of whatever you make. Lol

 

[skunkape1]

Come up with an original tool or an innovative improvement to a tool. If such a thing is possible anymore?

Although Gearwrench was founded in Taiwan, I think that's the best example I can give you. Make the next, must have tool. Make the next ratcheting wrench. Good luck!

 

[Iron-Iceberg]

Not sure about all the negative thoughts here. The Woodpecker one time tool program seems to do pretty good with tools made here.
I’m not sure of all the back ground on them but check out their small run tools. Make a good quality product even at a high price and it will sell to those who value it.

 

[rustbucket5]

the real problem is the customer, they want usa made tools but have NO clue how much it costs to bring a product made in the usa to market. so you will have tons of people cheering you on in here but then when the price is much more than harbour freight youll be labelled a scammer just trying to make it rich by over charging for tools. however dont let that deter you from doing something you want to do. theres always a market and you will never know until you try!

 

[apdxyk]

Metrinch anybody?

 

[bcexplorer]

Metrinch anybody?

Shut Up and take my money


$$$$$$$$$$$$$$$$$$$$$$$$

 

[yhprum]

I agree with finding a niche and working that. You dont want to compete with any established tool brands. I woud try to offer a unique product that poeple are willing to pay for ie woodpecker or the like

 

[jd_1138]

Sorry to be the barer of bad news; you don't have a chance...

Great thought, but no chance to startup a Made in USA hard tool factory today and make any money. Can't possibly happen.

Wow, not true. The Amazing Kreskin pyschic, are we?

 

[mr.lemons]

Not sure when it was first made, but the Knipex pliers wrench is a good example of a tool that nobody thought they wanted/needed until it arrived and now people are willing to pay a premium for them. New tools and developments to old tools is still very possible. Good luck to you sir.

 

[56Mark]

Another idea might be to market custom tools to really large companies.

I work in engineering for a large chemical company. We (operations) often need a unique tool that is usually a modified commercial tool; like cutting the end off of a wrench and welding to some bent bar, a piece of pipe with a notch and a piece of keystock, etc etc. The issue is that because of safety concerns custom made tools are not supposed to be used until engineering has evaluated and made a drawing. I have done a couple of drawings of things that have been in existence and safely used for many years just to meet the safety standard. You would have to market this but once you got in to a couple of places when someone wants something modified, instead of waiting for engineering to do a back burner job, the standard answer would be "we get that kind of stuff from XYZ tools". It probably would require basic machine tools and welders. For liability I would test each one to a certain force or torque and permanently mark it as such and provide a drawing with terms like "do not use if damaged or worn" etc etc.