Tool Time -- or how some companies become giants

You've heard about big companies becoming giants in the telecommunications and other industries, but did you know that the craze for consolidation has hit our tool industry big time too? DeWalt recently bought Porter-Cable and Delta. Milwaukee has joined up with Ridgid and Ryobi. Other buy-ups are afoot. In a previous column I discussed the changing landscape of fewer brands of tools available, with potentially less competition among manufacturers. I also discussed some of our good old-fashioned American companies moving their headquarters off shore to avoid paying corporate taxes.

Since competition is what drives innovation in the marketplace, we have eagerly looked forward to each innovation in new and existing tools introduced with increasing frequency in the last few years. So one's initial response to these recent reorganizations which create huge tool manufacturing giants is alarm. There goes the competition! But remember what's happened in other industries. Take the automotive world for example. A few years ago Ford bought Jaguar and GM bought Saab, while Mercedes and Chrysler are now merged. Chrysler has introduced a number of very innovative autos since their merger. Jaguar and Saab are doing better than before as they draw on their parent companies for manufacturing efficiencies to keep costs down, while still maintaining their individualism.

As I wander through the tool section of Home Depot or look at the latest catalogs from the major manufacturers, I'm overwhelmed with the ever increasing quality and innovation in tools, coupled with ever lowering prices. For example, a high quality, powerful drill with a built-in battery was a big deal 15 years ago and now they're ubiquitous. (I still have my first two Makitas I bought back then.) But the innovation didn't stop there. Now almost any type of tool is available as a battery-operated version. And battery powered impact drills are the latest big thing. They promise to be far more useful than a plain old drill or even a hammer-drill for many heavy duty tasks. Right behind them are nail guns that have cut the air hose. First Paslode came out with an explosive charge type, now DeWalt is bringing out a battery operated one. The new catalogs from Milwaukee, Porter-Cable, DeWalt, Festo, and the rest are all displaying new, very innovative tools that are reasonably priced.

We still need to be vigilant that some companies don't start cheapening the innards of their tools while keeping the same name plate on the outside. My concern is that they might try to pass these off as the same high quality products we've been used to. (I'm still suspicious of Delta's "X" line of tools.) By reading tool tests in the magazines we can guard against this, and we can just refuse to buy such junk. Some magazines have also started talking about the differences between grades of tools, pro models versus D.I.Y. models. Again a little knowledge will protect us.

Don't get me started on the inferior, look-a-like tools that are flooding into our market from off-shore companies. These can be spotted by their low, low prices and poor quality. This is just a side issue, and I don't think we have to fear our beloved name brand tools succumbing to these tactics -- or else we won't buy them.

So I am alarmed at these consolidations, but I believe the innovations will continue -- how else will they get us to part with our old tools and buy the newest great thing! Let's hope I'm right.