The global market for Hand Tools & Accessories is expected to slump by -11.2% in the year 2020 and thereafter recover and grow to reach US$22.9 billion by the year 2027, trailing a post COVID-19 CAGR of 3.9% over the analysis period 2020 through 2027. Economic activities came to an abrupt halt in the first half of 2020 as governments worldwide stepped up measures to curtail the spread of COVID-19 infections. The decline in capital spending levels, falling industrial activity and reduced private consumption are all affecting prospects in key hand tools end use industries such as oil & gas, chemicals, automotive, construction, home improvement, commercial renovation, energy & power, and mining sectors. Containment and lockdown measures implemented to curb spread of COVID-19 virus have resulted in significant declines in manufacturing activity ranging from aircraft, automobiles to consumer goods. Most of these industries are witnessing significant weakness due to the crisis. With the commercial aerospace industry collapsing under the travel bans and restrictions, aircraft manufacturing is set to receive the worst ever setback sending knock-on effects across the upstream supply chain. Without government intervention and financial support, several low cost airline companies in developed and developing countries are expected to file for bankruptcies, directly impacting fleet expansion plans and new aircraft procurements. With consumers not seen as likely to spend on automobiles anytime soon, automobile demand and production will decline impacting profitability and revenues of manufacturers including job shops handling activities under a contractual basis.

The D.I.Y industry, which traditionally benefits from tough economic scenario, continues to be under pressure due to squeezed personal finances and household wealth. While the pandemic is estimated to cost the global economy trillions of dollars, another knock-on effect of COVID-19 is the rise in unemployment across the globe. As businesses struggle to keep afloat, job cuts and bankruptcies are expected to rise sending millions into unemployment. Rapid tightening of financial conditions, dwindling trade, and increasing geopolitical tensions, continue to erode business confidence. Personal financial outlook, economy, job security confidence, and purchasing and investment confidence are all tumbling as the human and economic cost of the global pandemic rises. Unemployment rates are climbing to worrisome levels in both developed and developing economies alike. The loss in consumer confidence and erosion of household wealth and discretionary spending will impact virtually every industry and business worldwide. The pandemic has pushed consumers to conserve cash. With unemployment rates rising amid the virus induced economic crisis, consumers are cutting spending budgets. Unemployment rates have hit never-before highs with the US topping the charts with double digit growth in unemployment rates. Though DIY platforms are known for their ability to help consumers save on costs and expenses and offer high ROI in terms of cost saving, the uncertain economic environment, rising unemployment levels and pressure on personal incomes is deterring consumers from taking on DIY projects, including DIY home improvements and DIY car maintenance.

Additionally, COVID-19 restrictions have elicited a sudden & sharp drop in vehicle miles traveled (VMT). Lockdowns, work-from-home & closure of public transit have brought demand for vehicle service and repair services to a screeching halt. Physical distancing measures have significantly reduced customer foot traffic in service centers and garages. Given the steep economic recession and the slow recovery new demand for automobiles may take more than a year to reach 2019 levels. With an inversely proportional relationship, longer the slump in new car sales greater will be the demand for servicing of older cars in operation. Urgent break-fix-repair and maintenance on current vehicles will recover with pent up energy in the year 2021. Defined as tools powered by hand, hand tools are the most ubiquitous, omnipresent and indispensable instruments used virtually every day. Right from adjusting and repairing machinery to building a multitude of objects both simple and complex, hand tools are of immense value to both consumers and professionals including craftsman, handymen and industrial workers. There are several types of tools available for different purposes such as tools for joinery, fixing tools for construction, shaping tools, moving tools, measuring tools, edged tools for cutting, simple general purpose tools, etc. Hand tools are typically used for holding, bending and compressing objects; driving nails into a surface; fitting, binding or fastening parts, forging metal, and breaking objects; turning objects, turning in or removing screws; chopping trees and timber; cutting, sawing, splitting, smoothening, shaping or carving wood; chiseling or carving or cutting wood, hard metal or stone; shoveling i.e. digging, lifting, and moving bulk material, loosening, lifting and turning over, shaping and clearing soil in gardening and farming and to controlling weeds, and harvesting root crops; and a host of special service tools for repairing, and maintenance of different products. Most modern technology trends such as electrification, mechanization, and automation favor use of power tools. In line with the trend, power tools have superseded hand tools in terms of popularity and sales and now command over 60% of total tooling market. Even in the era of automation and mechanization, the balance between the handwork and machine work for achieving quality standards drives the need and demand for hand tools. Hand tools therefore have a secure niche in the global tooling industry which is dominated by powered tools.