How to Organize Tools in a Small Workshop

Learn how to organize tools in your small workshop! We’ll compare pegboard vs. cabinets, ways to store hand and power tools and how to keep them organized!

Learn how to organize tools in your small workshop! We'll compare pegboard vs. cabinets, ways to store hand and power tools and how to keep them organized!

How to Organize Tools

Today I’m sharing how to organize tools in a small workshop, garage, shed or basement. We’ll compare organizing our tools with pegboard vs. shelves in wall-mounted cabinets, the best way to store our tools and how we can keep them organized once and for all!

Related: My 12×13 Small Woodshop Layout

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My Tools Were Disorganized

The tools in my small workshop were disorganized for far too long. Many tools didn’t have a permanent home which meant I was constantly moving them from my workbench to my table saw to the floor. My goal for this year was to finally get my tools organized.

Looking at disorganized tools in a small workshop

I should mention this post is a work in progress. Overall, I’m happy with how I organized my tools, but I still feel there are a few areas that could be improved. I will continue to update this post as I find better ways to organize my tools. And I’m open to suggestions. Please leave your workshop organizing tips in the comments.

Before we get into how to organize tools, be sure to click the subscribe button at the bottom of this page to sign up for my FREE weekly newsletter loaded with helpful pocket hole tricks, space-saving workshop ideas, clever DIY tips and more!


How to Organize Tools: Why I Don’t Use Pegboard

Let me start by saying this is not meant as a dig towards anyone who uses pegboard to organize their tools. I don’t use pegboard and I won’t use it in my workshop.

I can see how pegboard can be a good way to organize tools. It’s handy to be able to reach over and grab any tool you need, but let’s look at this another way.

Let’s look at a pegboard from a distance. It’s covered with tools of different shapes, sizes, and colors. There’s so much to see. What do you look at first? For me, it’s a lot for my eyes to focus on.

Pegboard can make a small workshop feel cramped and look jumbled. It can make a small space feel even smaller. Almost like the walls are closing in. Plus, all those tools absorb the light which can make a small space feel darker than it really is.

My goal is to help you make your small workshop feel bigger than it actually is. So I don’t think pegboard covered with tools of different shapes, sizes, and colors is the best way to organize tools in a small workshop.

Related: 4 Reasons Why I Don’t Use Pegboard


How to Organize Tools in Small Space

I think the best way to organize tools in a small workshop is with wall-mounted storage cabinets.

Let’s look at my storage cabinets from a distance. We see one solid color rather than a jumble of shapes, sizes, and colors. It looks clean and sleek. The wall appears longer and taller which makes my space feel larger.

The DIY workshop storage cabinets installed on the wall

Tools are organized behind the cabinet doors on adjustable shelves within the cabinet instead of being exposed.

I’ll admit it’s probably a little handier to reach for a tool on a pegboard, but I think the tradeoff is worth it.

It’s easy enough to slide open a cabinet door and grab the tool I need. Plus, the cabinets reflect the light which makes my small workshop feel bright, open and larger than it actually is.


DIY Tool Storage Cabinets

We can buy tool storage cabinets for our workshop, but I choose to make my own custom cabinets specifically designed for a small space.

My DIY storage cabinets aren’t as deep as a kitchen cabinet which means it takes up less space in my shop. I chose to use sliding cabinet doors because hinged doors take up space as they swing open into the shop. The shelves are adjustable which makes it easy to organize tools of different shapes and sizes.

Skate over to get the free plans for the DIY storage cabinets now.


How to Organize Tools in a Small Workshop

  • Sort tools by category and toss any damaged or broken tools
  • Make a heat map of the tools that you use the most
  • Organize the tools in the cabinet using the heat map
  • Label the tool locations
  • Keep your tools organized

How to Organize Tools Video

Watch the quick video to see how I organized the tools in my small workshop!


Step 1. How to Organize Tools: Sort the Tools

The first thing I needed to do before I installed my new workshop cabinets was to remove the tools from the old cabinet and take the old cabinet off the wall.

I started by setting up some boxes so I had a place to sort the tools. I used Amazon boxes because who doesn’t have a bunch of those laying around?!

I used painter’s tape to label the boxes with my tool categories. I used a slightly different list when I was sorting, but here’s the list of the tool categories I would use now:

  • Cutting
  • Drilling
  • Measuring and Marking
  • Joining Tools/Kreg Jig
  • Sanding
  • Adhesives
  • Hand Tools
  • Router
  • Personal Protective Equipment (PPE)

I tossed things in the garbage as I removed and sorted the tools. I threw out any broken or damaged tools that couldn’t be repaired, worn sanding discs, empty packages, etc.

I also thought about each tool as I removed it from the cabinet. Is this a tool I use all the time, seldom use or never use? If I never use it, can I find another home for it so it won’t take up valuable space in my new cabinets?

Sorting is the first step for how to organize tools

Step 2. How to Organize Tools: Make a Heat Map

The old cabinet was removed from the wall and the new storage cabinets were hung. Now it was time to start thinking about how I would organize my tools. To help with that process I created a tool organization heat map. In other words, where should I store the tools I reach for or use the most?

I printed a sketch of my cabinets and began laying out where the tools should be organized. I usually place my mobile workbench in the middle or right side of my shop, so the tools I use most often should go in these cabinets. This is where I will store my drilling tools, measuring/marking tools, joining tools/Kreg Jig, sanding equipment, and PPE.

My table saw sits on the left side of my shop. I’ll need to move the table saw to get into these cabinets.

I’ll store the tools I use less frequently here because these cabinets are not as easy to reach. This is where I’ll stash cutting tools, adhesives, hand tools, my router, and router bits.

Creating a heat map shows how to organize tools in a small workshop

Step 3. How to Organize Tools: Fill the Cabinet

Now that I decided where I’ll store my tools it was time to organize them in the cabinets. I used my heat map as a guide to place the tools in the cabinets.

Showing how to organize tools on shelves a small workshop

As I was organizing my tools I noticed my drills took up too much space on the shelves so I built a drill storage rack.

Related: How to Make a DIY Drill Holder


Step 4. How to Organize Tools: Label Locations

After I organized the tools where I wanted them I labeled their locations. I labeled the locations for two reasons. First, labeling makes my storage area look neat and tidy. And second, it makes me accountable to put the tool back where it belongs.

I used my Dymo Label Maker and clear label tape to mark the tool locations.

I’ll be honest I haven’t settled on a permanent location for some of my tools. I’m waiting to label these tools until I have decided on their final spot.

A label maker is used to organize tools

Step 5. How to Organize Tools: Keep it Organized

Here’s the big question. How do we keep our tools organized? I think the first step is to have a permanent home for each tool.

As I mentioned, using the label maker helps the cabinets look tidy, but it also makes me accountable to put the tool back where it belongs. I don’t need to think about where I’ll put the tool. I know exactly where it goes.

The next step to keeping our tools organized is treating our workshop like our kitchen. This means putting our tools away after each use. Just slide the door open and put it where it belongs

And I get it. This is tough. I was in the habit of just leaving the tools where they were. But now that I have the cabinets labeled with the tool location it’s almost fun to put them away.

The adjustable shelves in my cabinets were finished with shellac. I want to keep these shelves looking neat and clean so I use my Shop-Vac to clean the tools before I put them away. It’s just like I would wash a dish before putting it in my kitchen cabinets. I enjoy opening my workshop cabinets and seeing how everything looks so neat and tidy.


Final Thoughts

Now you know how to organize tools in your small workshop, garage, shed or basement. First, sort the tools by category and toss any damaged or broken tools. Make a heat map of the tools that you use the most and organize the tools in a cabinet using the heat map.

Keep your tools organized by labeling their locations. Labeling makes the cabinet look tidy and makes you accountable for returning the tool to its proper location. And be sure to clean tools before returning them to the cabinet.

Thank you for stopping by. If you found this information helpful, would you please pin it to Pinterest? Other DIYers would appreciate it and I would too! Thank you – Scott


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7 Comments

    1. Hi Greg – Thank you for stopping by. Actually, there isn’t a link. Just below the text starting “Watch the quick video” there is an image with an arrow “>”. Just click that arrow and the video will begin to play.

  1. Hi Scott, i’m just starting, (retired, and second life) I have and taken in all that you have put in the web page
    and i think it’s great, my new work-shop is a 1 and a 1/2 car garage, and every thing that you have said is
    just what i’m going to do. Many thanks Colin

    1. Hi Colin – I’m glad you’re enjoying the tips and tricks. Good luck with setting up your workshop!

  2. My wife and I have recently downsized and I have been looking for some help in organizing my tools into my new, much smaller space. More than anything else I needed help with sorting tools into categories, This post is just what I have been searching for to help me get organized. Your ideas make so much sense to me, thank you for your post.

  3. Great organizing! However, where do you put those hand tools that you always are reaching for? Hammer, screwdrivers, utility knife, tape measure….you know, those things you need NOW when you need them! Thanks.

    1. Hi Lynda – Thank you for the compliments. I keep my hand tools in a tote/toolbox because I frequently need to use them outside the shop. This way I can just grab the tote and take it with me.

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