There are lots of ways to store tools in your shop, from chests to wall cabinets to pegboard. These hanging panels are my favorite system. They are simple to make, they keep all of your essential tools at your fingertips, and they can be easily re-hung in new spots when your workshop layout changes (it almost always does). The keys are the simple french-cleat system used to hang the panels securely on the walls, plus the variety of holders that keep the tools both secure yet totally accessible.
You might think pegboard does something similar, but it doesn’t. It’s not as easy to move around the shop, and a lot of the pre-made holders don’t really hold woodworking tools well. As for wall cabinets and tool chests: The former has doors that you will end up keeping open, turning it into a wall panel, basically, and the latter puts your tools out of reach, which is a total PITA when you are trying to work efficiently.
As for what to hang on the wall, I put everything except my chisels and hand planes. I have a lot of these, and they are easy to store and protect in drawers below my workbench. They are plenty accessible that way, and the holders they would require are a bit over-the-top. But if you use these tools every day, you might want to put them on the wall too.
For this project, I bought two 2×4 panels of birch plywood, 3/4 in. thick, from the home center, though the super-strong French-cleat system will let you hang panels of almost any size. To make the panels look more finished, I put an arc on the corners with my belt sander, then rounded all the edges with my router, using a 3/8-in. roundover bit.
The French cleats are nothing more than a strip of plywood that I ripped in two with a 45-degree bevel cut on the tablesaw. You could do the same thing with a circular saw: Just start with a wider piece, clamp it securely, and run the saw along a straightedge as you make the cut.
One part of the cleat screws to the plywood panels, and the other screws to the wall. To get a really strong grip on the wall, look for wall studs. In my case, I put plywood on the walls instead of drywall, making it easy to hang things anywhere. That’s a great shop tip. As for the cleat that attaches to the plywood panels, be sure to use screws that will almost pop out the front side of the panels, so you get a really good grip. I used 1-1/4 in. deck screws, countersinking them a bit in the cleat so they reached deeper into the panels.
As for the tool holders, this is where the fun really begins. Whether you hang your tools on wall panels like me, or put them in a wall cabinet, some of these holders will work for you. By the way, I had fun making custom holders, and they do add handcrafted flair, but not every tool needs one. I also used common nails and screws and a couple of cool magnetic holders. Check the photos below for the rest of the story.