Tools are very important in Graveyard Keeper. You start the game with a few of them. Later, you will be able to upgrade them and craft new models.
At the very beginning of Graveyard Keeper you will get a shovel, axe and pickle. You will be able to loot them from the chest at the cemetery. You can do it before Episcopa arrives or wait for him and pick those items after he tells you about them. Each of the items has a durability bar. When it depletes, the game will display the message presented above. To repair your equipment you need a Wheatstone. You can buy it from a blacksmith - the first arrow costs 10 silver coins.
To get a sword you have to take a letter from a merchant to the blacksmith. You can do it in the first minutes of the game - after finishing the conversation with the Skull. All you need to do is approach the merchant and talk to him. He will give you a letter. Take it to the blacksmith and talk to him. He will drop a sword and a wheatstone for you.
Upgrades can be done in a few ways. You can buy new items at the Blacksmith, get new tools from the technology tree or upgrade them by using an anvil.
To purchase new tools you simply have to visit the Blacksmith. You don't have to sharpen them.
Unlock the Tools ability in the technology tree to be able to get new tools. Thanks to these items you will lose less energy.
To create new weapons and parts you must have an anvil I or anvil II. There, you can create nails, simple iron parts and complex iron parts. Click on the anvil to see which resources you need to upgrade your tool.