Tooling wouldn't be actually building or buying the tool itself, but rather the expense involved in preparing an existing tool to perform a specific task. This cost is often passed down to the company that wants to manufacture something.
For example, you could go to a factory that makes plastic widgets, and say "I need to make a vape pen." They'd say "ok, we need to make a mold, and that's going to cost $7,500." The cost of the mold is "tooling."
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.