Spain: Hand tools sector
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1 Spain: Hand tools sector ICEX sector notes 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 The sector recorded sales of 318 million in 2008, some 18.5% lower than in Domestic sales also fell, by 24.5%. The sector s supply side is represented by 32 companies, of which 52% are medium-sized, 30% are small and 18% are large organizations with over 100 employees and foreign capital. The mediumsized companies, which specialize in high-quality products with good brand image in the domestic market, focus much of their efforts on exports (accounting for 50% of all sales). The number of companies that manufacture hand tools has fallen in recent years. The main causes are mergers as well as acquisitions by foreign companies and a change of activity by some manufacturers that have decided focus on sales. YEAR Companies Jobs Sales* * millions , , , , Source: Herramex 2
3 Geographically, production is located in very few regions, most notably in the Basque Country, which is home to 80% of companies, followed by Catalonia (11%), La Rioja (7%) and Madrid (2%). Geographic distribution Region Basque Country Catalonia La Rioja Madrid % 80% 11% 7% 2% Source: Herramex Innovation and development Hand tools have changed a great deal in recent years in terms of functionality and safety. The current mechanisms seek to give users better performance with the least amount of effort possible. Products such as pliers, screwdrivers, clamps and metal brushes have changed the composition of their handles and stems, or their ergonomics. Tools have also been made much safer. Competitiveness factors The hand tools sector must compete with mass produced and much cheaper products from China and India, as well as counterfeit copies. Spanish manufacturers compete by innovating and offering strong after-sales service. The Euro/Dollar exchange rate is another problem affecting the sector, since it means that European products are more expensive compared to those from Dollar countries. Demand segments The main clients for these products demand high quality, such as the metalworking industry, mining, oil companies, gas pipelines, the automotive industry, aeronautics, hydroelectric power plants, construction, brickwork, carpentry, electricians, etc. DIY is another important segment for hand tools, but the trend is for cheaper products and quality is not as important. Sector associations HERRAMEX The Spanish Hand Tool Manufacturers Association is the only one in the sector, representing 90% of all Spanish hand tool manufacturers. 3
4 Foreign trade three Spanish trade balance of the hand tools sector 1,500,000 1,000, , , ,000, Exports 302, , , ,241 Imports 814,634 1,008, , ,932 Balance -512, , , ,691 Data in 000s Source: created internally based on Customs data Ranking by country of Spanish exports from the hand tools sector Ranking Country Portugal Germany France Italy Netherlands The United States Morocco Cuba United Kingdom Mexico Total top 10 Other countries Total exports ,415 30,114 30,823 19,544 8,969 23,926 5,215 13,716 9,416 6, ,406 80, , ,434 31,223 35,440 20,388 9,959 17,289 6,277 15,094 12,213 7, ,081 95, , ,408 36,622 28,102 18,208 17,218 15,045 10,290 9,195 7,225 6, ,503 95, , ,931 30,267 25,365 13,969 13,945 10,437 6,771 6,551 6,457 3, ,575 75, ,241 Data in 000s Source: created internally based on Customs data 4
5 Ranking by product of Spanish exports from the hand tools sector Ranking ALL OTHER HAND TOOLS 32,742 32,181 37,232 29, NATURAL OR ARTIFICIAL ABRASIVES 28,067 29,303 29,401 27, ADJUSTABLE HAND OPER- ATED SPANNERS AND WRENCHES 14,802 24,213 24,668 17, TOOLS OF TWO OR MORE OF THE HEADINGS 8202 TO 8205, PUT UP IN SETS FOR RETAIL SALE 15,543 14,622 14,096 12, PARTS FOR TOOLS FOR WORKING IN THE HAND WITH SELF- CONTAINED ELECTRIC MOTOR 9,974 12,228 12,965 11, PLIERS, PINCERS AND SIMI- LAR HAND TOOLS 8,256 12,650 12,355 11, NATURAL OR ARTIFICIAL ABRASIVE 9,977 10,353 11,882 9, ELECTRO-MECHANICAL TOOLS FOR WORKING IN THE HAND 13,265 13,389 11,160 9, ALL OTHER HAND TOOLS FOR DOMESTIC USE 9,977 11,302 10,627 8, PIPE CUTTERS, BOLT CUT- TERS, PERFORATING PUNCHES,AND SIMILAR TOOLS, AND PARTS THEREOF 10,362 10,360 10,418 8,031 Total top 10 products 152, , , ,199 Other products 149, , , ,042 Total sector exports 302, , , ,241 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 Note prepared in 2009 by the Information Dept. of the Industrial Products and Technology Division
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