Article at a glance:

Tough times for toolmakers

China and other countries with low-cost labor are putting enormous pressure on the tool and die industry in Europe, North America, and Japan. Lower wage rates are only one reason; increasingly, toolmakers in low-cost countries are also competing on quality and turnaround times.

The take-away

Toolmakers in the developed world can hold off low-cost competitors in the short term, but to endure and thrive they must consolidate to offer their big customers a broader array of services.