I would just like to point out a terrific company bucking the trend: Lie-Nielsen Tools of Maine, USA. My shop practically runs on their excellent hand tools--planes, chisels, and specialty tools. They do everything in-house, including casting and machining. Their products are expensive (like Smith electric basses or my double basses), but heirloom-quality and worth every penny. Woodworkers the world over cherish and collect their products. Have a look:
http://lie-nielsen.com