ToughBuilt Industries, Inc. engages in design, manufacture, and distribution of home improvement and construction products for the building industry in the United States, the United Kingdom, Brazil, Canada, Europe, Mexico, and internationally.
The company offers product lines for both Do-It-Yourself and professional markets under the TOUGHBUILT brand name within the global multibillion-dollar per year tool market. The company’s business is based on the development of innovative and state-of-the...
ToughBuilt Industries, Inc. engages in design, manufacture, and distribution of home improvement and construction products for the building industry in the United States, the United Kingdom, Brazil, Canada, Europe, Mexico, and internationally.
The company offers product lines for both Do-It-Yourself and professional markets under the TOUGHBUILT brand name within the global multibillion-dollar per year tool market. The company’s business is based on the development of innovative and state-of-the-art products, primarily in tools and hardware category, with a particular focus on building and construction industry with the ultimate goal of making life easier and more productive for contractors and workers alike.
The company’s three major categories contain a total of 22 product lines, consisting of Soft Goods, which includes kneepads, tool bags, pouches, and tool belts; Metal Goods, which consists of sawhorses, tool stands and workbench; and Utility Products, which includes utility knives, aviation snips, shears, lasers, and levels. The company also has several additional categories and product lines in various stages of development.
The company designs and manages its product life cycles through a controlled and structured process. The company involves customers and industry experts from its target markets in the definition and refinement of its product development.
The company operates through the following subsidiaries: ToughBuilt Industries UK Limited; ToughBuilt Mexico; ToughBuilt Armenia, LLC; ToughBuilt Columbia, and ToughBuilt Brazil.
Significant Developments
The following highlights material business developments in our business during the fiscal year ended December 31, 2023:
In January 2023, the company launched over 40 SKUs in the Handheld Screwdrivers segment, including ratcheting bit drivers, insulated screwdrivers, precision, slotted, Phillips, Torx, and cabinet screwdrivers, as well as demolition drivers.
In January 2023, the company expanded its distribution agreement with Sodimac, South America’s largest home improvement and construction supplier. In this extended agreement, stores in Chile, Peru, Argentina, Colombia, Brazil, and Uruguay will initially begin selling 15 SKUs in-store and will bring 23 SKUs to Sodimac’s online marketplace.
In January 2023, the company launched more than 20 new SKUs in the Handheld Wrench segment, including adjustable wrenches, construction wrenches, and pipe wrenches.
In February 2023, the company launched its new line of pliers and clamps. The new line, comprised of more than 40 SKUs, will be made available for purchase through leading U.S. home improvement retailers and across ToughBuilt’s growing strategic networks of North American and global trade partners and buying groups, servicing over 18,900 storefronts and online portals worldwide.
In August 2023, the company expanded its distribution in the European Union with two major retail groups, La Platforme Du Batiment and Prolians, servicing professional customers in France and Spain.
In August 2023, the company expanded its product distribution to customers in the United Kingdom through new business with Howdens UK and City Electrical Factors UK (CEF), marking entry into a combined network of more than 1,200 retail locations nationwide.
In October 2023, the company launched its StackTech product line, initially rolling out more than 25 SKUs. StackTech is an intuitive modular storage toolbox system, and StackTech is the world’s first auto-locking stacking tool storage solution with 14 unique features.
Products
The company creates innovative products that help its customers build faster, build stronger, and work smarter. The company accomplishes this by listening to what its customers want and need, and researching how professionals work; then it creates tools that help them save time, hassle, and money.
TOUGHBUILT manufactures and distributes an array of high-quality and rugged tool belts, tool bags, and other personal tool organizer products. The company also manufactures and distributes a complete line of knee pads for various construction applications and a variety of metal goods, including utility knives, aviation snips and shears, and digital measures such as lasers and levels. The company’s line of job site tools and material support products consists of a full line of miter saw and table saw stands, sawhorses/job site tables, roller stands, and workbenches. The company’s products are designed and engineered in the United States and manufactured in China, India, and the Philippines under its supervision of quality control. The company does not need government approval for any of its products.
The company’s soft-sided tool storage line is designed for a wide range of Do-It-Yourself and professional needs. This line of pouches and tool and accessories bags is designed to organize its customers’ tools faster and easier. Interchangeable pouches clip on and off any belt, bag, ladder wall, or vehicle. The company’s products let its customers carry what they want so they have it when they want it. ToughBuilt wide-mouth tool carry-all bags come in sizes from 12 inches to 30 inches. They all have steel-reinforced handles and padded shoulder straps, allowing massive loads to be easily carried. Rigid plastic hard-body lining protects everything inside. Double mesh pockets are included inside to provide complete visibility for stored items. They include a lockable zipper for added security and safety, and secondary side handles for when it takes more than one to carry the load.
These products have innovative designs with unique features that provide extra functionality and enhanced user experience. Patented features such as the company’s exclusive “Cliptech” mechanism incorporated in some of the products in this line are unique in these products for the industry and have distinguished the line from other similarly situated products; thus, the company believes there is an increasing appeal among the different products of this category in the professional community and among enthusiasts.
Soft Goods
The flagship of the product line is the soft goods line, consisting of over 100 variations of tool pouches, tool rigs, tool belts and accessories, tool bags, totes, a variety of storage solutions, and office organizers/bags for laptops, tablets, cellphones, etc.
The company has a selection of over ten models of kneepads, some with revolutionary and patented design features that allow users to interchange components to suit particular conditions of use. Management believes these kneepads are among the best-performing kneepads in the industry. The company’s all-terrain knee pad protection with snap shell technology is part of its interchangeable kneepad system, which helps to customize the job site needs. They are made with superior quality using multilevel layered construction, heavy-duty webbing, and abrasion-resistant PVC rubber.
Metal Goods
Sawhorses and Work Support Products
The second major category consists of sawhorses and work support products with unique designs and robust construction targeted for the most discerning users in the industry. The innovative designs and construction of more than 18 products in this category have led to the sawhorses becoming among the best sellers of the category everywhere they are sold. The newest additions in this category include several stands and work support products that are quickly gaining recognition in the industry and are expected to position themselves in the top-tier products in a short time. The company’s sawhorse line, miter saw, table saw & roller stands, and workbench are built to very high standards. The company’s sawhorse/jobsite table is fast to set up, holds 2,400 pounds, has adjustable heights, is made of all-metal construction, and has a compact design. The company believes that these lines of products are slowly becoming the standard in the construction industry.
All of the company’s products are designed in-house to achieve features and benefits for the professional construction worker and the Do-It-Yourself person.
Electronic Goods
Digital Measures and Levels
TOUGHBUILT’s third major product line is digital measures and levels. These digital measures are targeted toward pros for accurate job site measuring to ensure the job is done right and on time. These digital measures help calculate the amount of construction products needed to finish the job, such as measuring floors, tiles, and paint.
Below is just a sample of the company’s products offered:
StackTech
In October 2023, the company launched its StackTech product line with an initial rollout of over 25 SKUs. StackTech is an intuitive modular storage toolbox system, and StackTech is the world’s first auto-locking stacking tool storage solution with 14 unique features.
Business Strategy
The company’s product strategy is to develop product lines in a number of categories rather than focus on a single line of goods. The company believes that this approach allows for rapid growth and wider brand recognition and may ultimately result in increased sales and profits within an accelerated period. The company believes that building brand awareness of its current ToughBuilt lines of products will expand its share of the pertinent markets. The company’s business strategy includes the following key elements are to commitment to technological innovation achieved through consumer insight, creativity, and speed to market; broad selection of products in both brand and private labels; prompt response; and superior customer service. The company will continue considering other market opportunities while focusing on its customers’ specific requirements to increase sales.
Market
The company’s products are available worldwide in many major retailers, ranging from home improvement and construction products and services stores to major online outlets. The company has placement in Lowe’s, Home Depot, Menards, Bunnings (Australia), Princess Auto (Canada), Dong Shin Tool PIA (S. Korea), and others, as well as seeking to grow its sales in global markets such as Western and Central Europe, Russia and Eastern Europe, South America, and the Middle East.
Retailers by region include:
United States: Lowe’s, Home Depot, Menards, Harbor Freight, ACE Hardware, Acme, TSC;
Canada: Princess Auto;
United Kingdom: Wickes, TOOL STATION, Huws Gray, Selco Builders Warehouse, MKM, City Electrical Factors, and Carpet & Flooring;
Europe: Elecktro3 and NCC Hardware;
South America: Sodimac;
Mexico: Sears;
Middle East: Lamed;
Australia: Kincrome and Bunnings;
New Zealand: Kincrome and Bunnings;
South Korea: Dong Shin Tool PIA Co., Ltd.
The company is actively expanding into other markets, including South Africa.
The company is in product line reviews and discussions with Home Depot Canada, Do It Best, True Value, and other major retailers both domestically and internationally. A product line review requires the supplier to submit a comprehensive proposal that includes product offerings, prices, competitive market studies, relevant industry trends, and other information. Within the near term, management anticipates adding three major retailers to its customer base, along with several distributors and private retailers within six sectors and fifty-six targeted countries.
New Products
Tools
In 2022, the company launched the following product lines: tape measures and chalk reels; striking tools; long handle garden and landscaping tools; and pliers and clamps.
In 2022, the company launched the following tools: reload Utility Knife; 21 new SKUs into the global handsaws segment; 500 ft. Rotary Laser Level Kit; 40+ new SKUs into the Handheld Screwdrivers segment; and 20 new SKUs into the Handheld Wrenches segment.
In 2023, the company launched the following product lines screw drivers line; wrench line; and pliers and clamps.
StackTech line
Mobile Device Products
Since 2013, the company has been planning, designing, engineering, and sourcing the development of a new line of ToughBuilt mobile devices and accessories for the construction industry and building enthusiasts. However, due to microchip shortages, the company has suspended this segment and put it on hold, and will continue developing it in the near future.
Sales Strategy
The devices, accessories, and bolt-on digital tools will be sold through relevant home improvement big box stores, direct marketing to construction companies, direct marketing of trade/wholesale outlets, and to professional outlets.
Intellectual Property
The company considers its ToughBuilt, Cliptech, and Fearless trademarks among its most valuable intangible assets. In 2019, the United States Patent and Trademark Office (USPTO) granted two new design patents (U.S. D840,961 S and US D841,635 S) that cover ToughBuilt’s ruggedized mobile devices, which are valid for a period of 15 years. The company also has several patents pending with the USPTO and anticipates three or four of them to be granted in the near future. The company also relies on trade secret protection for confidential and proprietary information relating to its product designs and processes. Copyright protection is also utilized when appropriate. Domain names are valuable corporate assets for companies around the world, including ToughBuilt.
History
The company was founded in 2012. The company was incorporated in 2012. The company was formerly known as Phalanx, Inc. and changed its name to ToughBuilt Industries, Inc. in December 2015.
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