The second death of Craftsman tools, or why the biggest tool company in the world couldn’t make a wrench in America

[Mailman]

Craftsman's $90M plan to bring manufacturing back to Texas flopped because of faulty robots​

• Tool company Stanley Black & Decker announced in 2019 that they would be opening a factory in Texas to bring American made Craftsman back
• Injecting $90 million into the process, which included state of the art robotics, the company said it would bring them back to their American heritage
• Three years later, the plant is now closed after the robotics used weren't up to scratch and the low number of tools produced have made them collectors items

When Craftsman announced a state of the art manufacturing plant in Texas, the company said it would ‘revitalize’ and ‘bring back their American manufacturing heritage’.

The $90 million dollar plant in Forth Worth would employ 500 full-time employees as well as an army of state of the art machines to churn out American made tools manufactured with domestic steel.

Use of the high-tech robots for much of the manufacturing would lower production costs to a level normally seen in China, it was even claimed.

But the whole process became nothing but a headache for Craftsman - owned by Stanley Black & Decker - when company after the automated system failed and the number of tools being churned out dwindled.

The factory ended up churning out so few tools that they've become a collector's item on eBay.

In March of this year, just three and a half years after breaking ground on the 45,000 square foot factory, the company announced it was closing the plant.
Craftsman had previously been owned by Sears which had moved production of the tools to China several years prior to reduce costs.

Stanley Black & Decker bought the company in 2017 for $900 million, with then Chief-Executive James Loree saying they hoped to 're-Americanize' the brand.

The property in Fort Worth is now up for sale following the decision to close it earlier this year.

Stanley merged with Black & Decker in 2010 and then bought over Newell Brands' tool unit in 2017, turning them into a gigantic company.

Last year, revenue had climbed to a staggering $17 billion, up from $3.7 billion in 2009.

A spokeswoman for the company told the Wall Street Journal: 'We endeavored to make Craftsman mechanics tools in a new innovative way.

'The events of Covid and supply chain challenges coupled with technology that did not meet our expectation, resulted in the discontinuation of operations.'

 

[Raymond]

America just like Britain having to adjust to being a post-industrial country.

I don't think it's a good thing that countries like ours don't seem to be able to make anything any more. The future is lowest common denominator goods produced for minimum cost/maximum profit.

 

[Jan_P]

Aeehh have they not heard of the Iron Curtain
been googling a bit
A YouTube video uploaded by a Belarusian company that supplied some of the machinery

The large draw of the plant had been to the use of what the company described as 'some of the most advanced manufacturing technologies available'.

Jeffrey Ansell, the company's president of global tools and storage when the factory was announced left the role in 2020 and has since been succeeded by four other executives.

Last month, the U.S. Securities and Exchange Commission settled charges against Stanley Black & Decker and Ansell for failing to disclose perquisites.

The company failed to disclose at least $1.3 million worth of perquisites and personal benefits paid to four of its executive officers and one of its directors.

The perquisites predominantly consisted of expenses associated with the executives’ use of corporate aircraft.

Belorussian and Advanced Manufacturing ?? Come on was there no one telling about business practice and models
One of the most corrupt countries in the world.
Lots of rules one needs to know if that is going to work out. At all even if you have local partner with pretty much his own paramilitary group as enforces .. Then maybe unless ...someone else has a bigger enforcers. Connected in the Government
Lots of stories about owners being thrown out of their own factory in Russia and so Corruption and no working legal system
No working banks .. And then someone is using private jets go there to buy high tech ???

Have all the signs of Corrupt plunder of a Company That much money gone in such a short time
Lets se what happens

Even if you have honest partners it is difficult .
I remember a company buying heat exchanger fittings from Poland .3 /4 inch or so cheap but everyone was wrapped in vax paper so there would have been the need hire someone unwrap then and then it would have been better buy them locally

I dont believe anyone here buys low tech even from Belorussia and if they tried they would get a lot of warnings.
A lot of bribes and a powerful local partner then maybe but anything can happen.

But this sends signal of a Crime Plan

 

[Jim]

For some reason this isn't passing the smell test. They couldn't get the automation to work? Hell, automation is everywhere in manufacturing today. Seems everyone can successfully use automation... but a company that threw $90 million at the process couldn't?

Yeah.... something's off about that.

 

[GLJ]

I agree something does not sound right.
$90m does not equal a new 45,000 square foot building with enough automation to need 500 full time employees.

 

[WideAWAKE]

I agree something does not sound right.
$90m does not equal a new 45,000 square foot building with enough automation to need 500 full time employees.

Not in Texas…

Here in California, you might get half that! Haha.

 

[Raymond]

I think the smell Jim detects might be to do with questions of state grants or tax arrangements or other inducements paid to secure the investment, plus the bonusses allegedly paid to a rapid succession of chief execs at the short-lived factory? Sometimes public and private investment money only makes a small number of people rather comfortably well off . . .

 

[Jan_P]

I agree something does not sound right.
$90m does not equal a new 45,000 square foot building with enough automation to need 500 full time employees.

Well spotted
500 staff and highly automated sounds wrong .. Why not 50
If I do the math right there is a lot of People per Sq Feet even if 3 shift

 

[650Skull]

Revenue 17 billion. 10% profit is still 1.7 billion and they fold after 90 million.

Perhaps the automation plant was bought from China and they sent faulty gear,.........nothing like a good conspiracy

 

[FB71]

So, my best friend growing up is a VP with SB&D. He was one of the executive officers that that lead the "Bringing Manufacturing Back To The United States" project, starting in 2013. He helped open the Mission, Texas plant. He was VP of DeWalt at the time. He became VP of Supply Chain in '18. He tells me covid absolutely massacred their resources, both physical and intellectual property. He wasn't directly connected to the plants operation after '18, but he says the situation was a sort of 'perfect storm', affecting all aspects of the company. Obviously, he can't disclose sensitive information, but tells me there was a lot happening behind closed doors that lead to this failure. He's currently a VP with TE Connectivity, which is now part of the same group as SB&D.

 

[FB71]

and just a personal side note; I worked at B&D back in '91 for less than a day... Was hired as a draftsman, put on a CAD terminal (monochrome, wire frame rendering) in a cube farm furthest from any window. I couldn't do it, just didn't jive with my psyche. My friend Nick started there in the business office in '94. Now he's helping run the joint. We both went to high school right down the street from SB&D WHQ in Towson, MD.