The line of spackle dust trailing from one New Jersey hand tool distributor's front door to its drywall tool section has gotten much lighter over the last two years. Contractors, it seems, just aren't buying new tools like they used to. The bulk of the distributor's business comes from hand tools, an industry sector that hasn't been the same since mid-2001, when it dropped off unexpectedly.

"Two years ago it was normal for several drywall vans to pull up daily, and for six guys to pile out and trail white footprints over to our drywall section," says the distributor's president. "Even that business has tapered off."

He's had a hard time "putting a finger" on the culprit, but blames the overall economy for the lower hand tool sales. Contractors only open their wallets when they absolutely need to, he adds, particularly in a slumping economy. To deal with it, the distributor has implemented new promotions and tested a variety of product mixes, displays and pricing strategies.

"We try just about anything we can," he adds.

He's not alone. In Clayton, Mich., Paula Bass also has seen a tapering off of hand tool sales in the U.S., though she says the Canadian market has remained stronger over the last two years. As president at KBC Machinery, Inc., Bass says a high Canadian dollar could make sales north of the border a little leaner in the months to come.

"Canada was saved a bit versus, say, the U.S. Midwest," says Bass. "However, with the Canadian dollar moving higher I think we'll start feeling the pinch up there."

When asked about hand tool trends, Bass says her handymen customers are beginning to use more professional grades, and also are seeking out tools that can multi-task. On the professional side, she sees tools becoming even more specific to each job and ergonomically adapted. The trend means more SKUs for distributors and the possibility of seeing product lines show up in a local Home Depot.

Bass isn't worried about the increased competition from such big boxes.

"Hand tools are an important part of what we do as a cutting tool distributor," says Bass. "Our clients come to us because they don't have to leave their facility, and they can get a wide variety of products from us that meet their specific needs."

Hand tool manufacturers haven't had it any easier than their distributors in the last few months. In Tarrytown, N.Y., The Hand Tool Institute's manufacturer members reported flat to negative business levels at a recent meeting, according to Bob Benedict, president. The good news is that their outlook for the next six months is much more positive.

"They all see a pickup," says Benedict, who is also president of Ajax Tool Works in Franklin Park, Ill.

Operating in an environment where globalization has forced U.S. manufacturers to be more competitive, Benedict says the typical hand tool manufacturer's inventory has been "burned down" over the last two years. Most are now ready to start fresh when the economy comes out of the doldrums.

"We came through the fast-paced 1990s, then spent the last two years reinvesting in equipment and processes and getting more lean and efficient," says Benedict. Now we're ready to get back on track."