What kinds of tools / what size labels?
I have seen a lot of restorations where people took pictures of their labels, cleaned them up in photoshop and then had them printed on to vinyl. I have some experience with this, but generally only use it as a last resort in tool restoration.
The majority of my nameplates I hand paint to restore. Its a time consuming process, but definitely worth every second I put into it in the end, as it looks factory in the end.