If a company wants the "employees" to pay for their business so they can make a profit, the employee needs to be charging the company for the materials and make a profit. In other words "markup"! "Tools" are a bit of grey area, expendables have no grey area, the company pays for them or I do not work for them. Does the company expect the other employees to pay the utility bills, electricity is an expendable just as much as a saw blade.
As to tools, a inventory of the workers tools they will be using on the job is made when he starts, over time any new ones needed are added, over time any replacements needed due to wear are paid for by the company, the company gets the old tool, this does not cover loss. If the employee leaves, deprecation or replacement is paid on the tools used. Or, the employee can pay for their tools and replacements etc. but retains the ability to "write them off" on his income tax, instead of the company.
Any "specialty" tools are paid for and owned by the company. As are tools that are not really used a great deal or tools that will be used by many employees at different times, like a pressure washer. The employee "signs" them out and is responsible for the item. Abuse is not tolerated.