Spain: Hand tools sector
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1 Spain: Hand tools sector ICEX sector reports one two three four five six Sector definition Spanish sector overview Foreign trade Leading companies Trade fairs Useful addresses
2 The hand tools sector one Hand tools can be defined as working utensils used generally on their own and requiring human effort to operate them. The sector is made up of the following subsectors: Tools for industry (40%) Tools for professionals (carpenters, plumbers, electricians) (30%) Tools for the automotive industry (23%) Tools for the agriculture industry (5%) Tools for the gardening industry (2%) Spanish sector overview two Following two consecutive years in decline, with domestic sales falling by up to 50%, the sector achieved stability in 2010, finishing the year with sales up by more than 20% over the year before. The sector is represented by 32 companies, of which 50% are medium-sized, 35% are small and 15% are large organizations with over 100 employees and foreign capital. The medium-sized companies, which specialize in high-quality products with good brand image on the domestic market, focus much of their effort on exports. YEARS Companies Jobs Sales* * millions , , , , Source: Herramex 2
3 Production is located in very few geographical areas. Of particular note is the Basque Country, which is home to 80% of all companies followed by Catalonia (11%), Rioja (7%) and Madrid (2%). Geographic distribution Region Basque Country Catalonia Rioja Madrid % 80% 11% 7% 2% Source: Herramex Innovation and development Hand tools have changed a great deal in recent years as regards functionality and safety. The current mechanisms seek to provide users with greater performance for the least amount of effort. The composition or ergonomics of the handles and rods of products such as pliers, screwdrivers, hand screws and metal brushes have changed. Tools have also been made much safer. Hand tool manufacturers work very closely with technology centers, where new materials and processes are researched, in order to create better quality and more economic products. Competitiveness factors The hand tools sector must compete with the much less expensive mass production from China and India, as well as fraudulent copies. Spanish manufacturers defend themselves by innovating and offering good after-sales service. The euro/dollar exchange rate is another one of the problems affecting the sector, since it means that European products are more expensive than those from countries that trade in dollars. Demand segments The main clients for the products demand high quality, and include the metal machine industry, mines, oil companies, gas pipelines, automotive industry, aeronautics, hydroelectric power plants, construction (masonry, carpentry, electricians, etc.). DIY is another important segment for hand tool demand, but more economical products are normally purchased, where quality is not as important. Sector associations HERRAMEX The Spanish Hand Tool Manufacturers Association is the only one in the sector, representing 85% of all Spanish hand tool manufacturers. It operates all thoughout Spain, although most of its members are in the Basque Country, which represents 90% of the national output. 3
4 Foreign trade three Spanish trade balance of the hand tools sector 1,500,000 1,000, , , ,000, Exports 330, , , ,463 Imports 1,008, , , ,739 Balance -678, , , ,276 Data in 000s Source: created internally based on Customs data Ranking by country of Spanish exports by the hand tools sector Ranking Country Portugal France Germany Italy Netherlands The United States Cuba United Kingdom Morocco Sweden Total top 10 Other countries Total exports ,434 35,440 31,223 20,388 9,959 17,289 15,094 12,213 6,277 5, ,467 98, , ,408 28,102 36,622 17,218 10,290 15,045 18,208 9,195 7,225 5, ,174 96, , ,008 25,569 30,480 14,057 13,924 10,410 6,551 6,432 6,767 3, ,842 75, , ,317 30,492 29,938 19,100 16,380 9,426 8,484 8,483 6,608 5, ,764 83, ,463 Data in 000s Source: created internally based on Customs data 4
5 Ranking by product of Spanish exports by the hand tools sector Ranking ALL OTHER HAND TOOLS 32,181 37,232 28,752 28, NATURAL OR ARTIFICIAL ABRASIVES 29,303 29,401 25,504 27, MANUALLY ADJUSTABLE JAW WRENCHES 24,213 24,668 17,497 22, PARTS FOR TOOLS WITH IN- CORPORATED ELECTRICAL MOTOR FOR MANUAL USE 12,228 11,882 11,658 13, ALL OTHER HOME-USE HAND TOOLS 11,302 10,627 8,748 11, PLIERS, PINCERS AND SIMI- LAR TOOLS 12,650 12,965 10,654 10, TOOLS WITH INCORPORATED ELECTRICAL MOTOR FOR MANUAL USE 9,704 11,160 6,410 10, TOOLS FROM TWO OR MORE THE SECTIONS FROM TO 82.05, SUPPLIED IN PACKS FOR RETAIL SALE 14,622 14,096 12,296 10, ELECTRO-MECHANICAL TOOLS WITH INCORPORATED ELECTRI- CAL MOTOR FOR MANUAL USE 13,389 12,355 9,690 9, PIPE-CUTTERS, BOLT CROP- PERS, PERFORATING PUNCHES AND SIMILAR TOOLS 10,360 10,102 8,026 9,430 Total top 10 products 169, , , ,282 Other products 160, , , ,181 Total sector exports 330, , , ,463 Data in 000s Source: created internally based on Customs data 5
6 Leading companies four The leading companies in the sector by volume of sales are the following: SNA EUROPE INDUSTRIES IBERIA BELLOTA HERRAMIENTAS ROTHENBERGER MELCHOR GABILONDO SIMES-SENCO IREGA SAGOLA LOGISTICS JAZ - ZUBIAURRE TALLERES AMENABAR INDUSTRIAS PIQUERAS Source: Herramex Trade fairs five FAIR FERROFORMA International Hardware Exhibition LOCATION Bilbao, Spain FAIR BRICOFORMA International DIY Fair LOCATION Bilbao, Spain 6
7 FAIR INTERNATIONAL HARDWARE FAIR COLOGNE LOCATION Cologne, Germany FAIR PRACTICAL WORLD International DIY, Hardware and Industrial Supplies Fair LOCATION Cologne, Germany Useful addresses six BASQUE GOVERNMENT FLEXICOAT PROJECT 13TH AECOC HARDWARE AND DIY CONVENTION 7
8 Spanish Institute for Foreign Trade (ICEX). Pº de la Castellana MADRID Report prepared in 2011 by the Information Dept. of the Industrial Products and Technology Division
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