SK Tools’ new website has been under construction for several months, and they’ve finally lifted the curtain.
As you might be aware, Ideal Industries sold the SK Hand Tool brand to Hangzhou GreatStar Industrial, joining tool brands such as Goldblatt, Arrow, Pony, Jorgensen, WorkPro, and Shop-Vac.
SK finally revealed their website updates recently, but there’s a catch – everything is sold out.
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Every wrench, socket, ratchet, screwdriver, and accessory – sold out.
SK says that global supply chain issues have stalled production and all inventory is temporarily out of stock.
The SK Tools legacy goes forward. Once supplies are sufficiently restocked in our local Williamsport, Pennsylvania facility, you’ll be able to purchase the rough and rugged SK Tools you know and deserve.
Their new “about us” page says:
We have relocated our manufacturing and distribution from Sycamore, IL to Williamsport, PA USA in November 2021. This move allows us to leverage the facilities and technical capabilities of Shop-Vac who also shares our pride of quality, precision, innovation, service, and country.
It is unclear as to whether some, many, or all SK tools will now be produced at the Shop-Vac facility.
Back in October, 2021, I asked Greatstar where SK Tools will be sold. This is what they said:
Looking forward, we plan to leverage our international retail and distributor partner relationships to solidify and grow SK Tools’ existing retail footprint, and expand into new stores and channels. At this point, it’s too soon to share a list of new retailers or suppliers that will carry SK Tools because we don’t have all our distribution agreements finalized, but customers can expect to have an easier time finding and purchasing SK Tools.
Seeing as SK doesn’t have any tool inventory to sell right now, it’s not surprising there haven’t been any updates regarding their retail or dealer network.
It’s also possible SK will continue to focus on the direct-to-consumer sales model that Ideal used for the brand. But, if that was working well, would Ideal have sold SK to Greatstar, which seems to have developed a habit for acquiring bankrupt tool brands?
There’s no publicized timetable as to when SK will be up and running again.
I would also say that circumstances suggest SK is not simply out of materials due to supply chain issues. It seems highly likely that Shop-Vac’s facility required – or still requires – extensive upgrades or modifications to support hand tool production.
But, as SK says, their gears are still turning. Their social media accounts have not been updated in approximately 5 months, but the updated website/direct store could be considered a step forward.
Jared
It’s good to see some signs of life. A fellow with a plane flew over the factory recently and posted comparison photos of the Shop Vac factory from before and after the acquisition – and it certainly didn’t appear like anything was going on (empty parking lot for example).
That could be meaningless of course, since you can’t see inside the building. But it did make me wonder… Especially when combined with missed timelines (didn’t SK also say at one point they would be up and running in January?)
It’s probably easier to build a website than a factory, but at least this shows things are moving at SK.
Stuart
There could also be major activity at Greatstar’s overseas facilities.
SK will also need warehouse space.
They’ve been very slow to show their cards, which is why any news and even small updates are of interest.
fred
I wonder if the ShopVac factory will remain as a production facility – or if it will just re-open as a warehouse and office space. Has Great Star made any statements committing to continuing USA production of either the ShopVac or SK tool lines? What’s being made at the PA facility now?
Stuart
This is what they said in October:
Franck B.
I’d be willing to take a prop bet that once the dust settles and old stock is gone (that part appears to have happened already), that what remains of SK hand tool manufacturing in the US consists of only non-mainline items like screwdrivers, maybe pliers, and similarly inconsequential items, and that the core of what most people consider to be S•K (sockets, wrenches, and their old-but-still-loved ratchets) will not be made in the US.
I’m in Vegas about 1/4 the year so I can set it up. 😀
Jim Felt
You might not want to hold your breath waiting for takers. ;-)~
Maps Bam
Whatever you bet I will double that. SK will move production to China. No way they are transitioning a tool manufacturing plant from Illinois to Pennsylvania at a quick pace. And if they are already out of stock of most things no way they could survive not selling tools for a year. They may be consolidating the companies, but I highly doubt the tool manufacturing hangs around in the US.
Old Gasser
Not a surprise.
Waiting for forgings to come from Communist Red China!
From what I had read, the Ideal/S-K Facility in Illinois was a new building with new state of art equipment.
All hot work was being done at the former Ideal/Western Forge plant in Colorado Springs, Colorado.
Machining and finishing was done at the Illinois plant. Plating may have been subcontracted out.
Paul
I’m skeptical. I think the re-location was just a typical lame brain corporate move that shut down a perfectly good plant making tools just to move it somewhere else. My guess would be that “moving” a factory and all it’s workers turns out to be a lot more difficult than than they thought. I don’t think they’re out of inventory, I think they’re just not making any tools yet, I suspect the factory just isn’t up and running yet. I don’t think the supply chain is any more problematic than it was before the shut the factory down moved it. But I don’t know. All I know is when you go from making and selling tools to not having any tools to sell it’s NOT a great business model.
Stuart
Ideal sold the entire brand to Greatstar. Sometimes when sales/acquisitions like this happen, the existing factory carries on. Maybe Ideal wanted to keep the factory to make other tools, the details aren’t known.
Paul
If the old SK plant is still making tools for someone else we can find that out eh? Is the old plant still working or is the building sitting there empty and idle? And I would think if Greatstar left the SK plant in tact and built a new one somewhere else they would brag about their brand new SK plant rather talk about the “move”?
It’s true we don’t know what we don’t know but does it really make sense that Greatstar would by the “brand” but not the factory that manufactures the asset? I suppose it’s possible that they have a perfectly good plant sitting there idle because of “supply chain” issues, but everyone else is making tools so suspect that’s not the whole story.
Franck B.
I don’t know how many people reading Toolguyd were buying S•K before Ideal passed them on, but they definitely were having inventory problems pre-pandemic.
In late 2019, I was acquiring tools for a second garage. I was trying to pick up the dregs of Armstrong’s shutdown but couldn’t complete some sets, so I had a large S•K set with several pieces that went on walkabout. I tried to replace those pieces and expand it with other tools, but S•K’s site showed “out of stock” and its local suppliers were always unable to get what I needed.
At that time, to me it was clear Ideal was either going to shut them down or pass them on, and it seems Greatstar hasn’t really even started up the company and was more about shutting it down. It looks more and more like a “technology transfer”, like the Comac ARJ21, except slightly more above-board.
MM
I own very few SK tools but I did observe what you mentioned about their inventory being a bit strange even before the buyout. I frequently shop at a local hardware store–not like ACE, but a specialist nut-and-bolt vendor–who had a lot of SK tools on pegboard behind the counter. For years they had what looked like a very complete inventory of tools, the peg display was usually full. But around 2019 there were lots of holes in their inventory and half the wall was empty pegs.
Paul
Yeah, I noticed inventory problems as well, but Greatstar was promising to fix that, not shut down production entirely. This may not be/have been the “plan”, but let’s just hope this is as temporary as the promise rather than a critical business mistake. I just think it would be better to be making and selling some tools rather than no tools at all. But what do I know?
Greg
I think the US government should get involved and eliminate corporate taxes if a company will make all of there products in the USA. Plus the taxes will still be collected from all the employees income taxes so its a win win.
Paul
Sure, pass the tax burden on to the employees and hand out a break to a Chinese corporation. I think if the government wants to help we should focus on updating the nations infrastructure to resolve the supply chain problems. But that’s all beyond the subject line here.