Ask a European or an American about sectors that characterize Israel's economy and, once upon a time, they may have answered "agriculture" or "the Dead Sea." In the last decade, Israel has seen sweeping changes, with advances in electronics, biotech, and high tech that have placed it at the forefront of a global economy. Lesser known, perhaps, but just as strong, is the name that Israel has made for itself as an innovative producer of do-it-yourself (DIY) products.

Similar characteristics — innovation, commitment to quality and on-time service, and competitive prices — drive both high-tech industries and the world of DIY. The country's more than 400 hardware and DIY companies have shown consistent growth over the past 20 years, placing the country's DIY industry just behind high tech.

A Sizeable Market

Israeli DIY products are exported to more than 100 countries around the globe. In fact, late last year, when a delegation of Israeli DIY manufacturers visited France, Globes[online] referred to DIY products as the "next hot Israeli export." Some companies, such as Keter Plastics and ZAG (now part of Stanley Works), are consistently acknowledged as world leaders in the DIY field. Last year, Israeli hardware and D.I.Y. manufacturers exported products valued at just over $1 billion. These numbers are expected to double within the next decade.

A Wide and Varied Offering

The country's developed, sophisticated plastics industry, with its emphasis on innovative design, has given Israel a boost in achieving a secure foothold and worldwide success in the highly competitive DIY arena. In fact, a large percentage of the world's plastic toolboxes are manufactured for private label by DIY leaders Keter and ZAG.

As well, Israel produces many hundreds of products in the wide-ranging DIY sectors: household and houseware items, hardware and tools, lighting, lawn and garden, paints, plumbing and electrical, heating, bath and shower, and building supplies.

Just some Israeli-designed DIY products that have made their mark: self-winding hose reels, plastic garden sheds and greenhouses, irrigation equipment, car protection products, front vial viewers for levels, thread restorers, alli"gator" clamps, tool trolleys and toolboxes.

Les Rose, managing director of Elarco International Ltd., [http://www.elarco-intl.com] a company representing a number of Israeli DIY manufacturers, says that Israel has the ability to "stir up" the market and create excitement and interest through the constant development of new, innovative products. Its export-oriented focus and close proximity to Europe (just 10 days shipping time) give Israeli DIY manufacturers an edge over products shipped from the United States and the Far East.

Sean Movsowitz, international sales manager for Kapro Industries, [www.kapro.com] a manufacturer of levels and marking and measuring tools for the DIY market, agrees. "Innovation, patents, a very competitive price-quality ratio, reliability, strong marketing and business skills, and geography [close to Europe]" give Israel its strength.

Competition Comes Calling

Israel's leadership role as a constant innovator with "good sales and marketing strategies" and as a "reliable, trustworthy" business partner is critical as competition increases. Kapro is committed to having more than 25 percent of its sales from new products every year and is dedicated to continually evolving its product line to response to trends, markets, and innovations both in product development and production processes.

Some Israeli manufacturers have strengthened their marketing efforts to reach potential clients in Europe and North America. Others have transferred production facilities to China to take advantage of lower assembly costs, while keeping the R&D and management in Israel. Kapro established a wholly owned company factory in China, which has been very successful. The company is in the process of a major expansion of those facilities, without reducing production facilities or staff in Israel. However, no matter which route DIY companies take, it is generally agreed that manufacturers need to invest heavily in understanding markets and marketing, especially in issues related to localization and marketing approaches and strategies.

For potential customers and emerging markets, Israel's advantages relative to the Far East are "more attractive when taking into account the long shipping time, higher costs of holding inventory, and minimum order quantities," according to Rose. Movsowitz notes that while competition from the Far East has forced prices to decrease on certain products, "this has driven us to be more efficient from a production point of view and substantially increase our price-quality ratio in order to keep our competitiveness."

As for the future of Israeli DIY in the next five years, Rose believes that "more sophisticated products will be in demand, with more electronic integration." Israel will need to invest in high-tech factories to compete, "but … we will see Israeli DIY products in the forefront of the industry for many years to come."