I have to confess, it was much harder to come up with handmade things that would make a 2 year old boy excited. But I found this really awesome tool fabric and a lightbulb went off. Paired with some denim I had in my stash, I used this tutorial ( http://one-hip-mom.blogspot.com/2009/10/childrens-tool-belt-tutorial.html) to make him a tool belt. I had to add a zippered pocket - he loves zippers - and I used some "very hungry caterpillar" themed fabric (also stash) to line that - that's also what I used for the hammer loop and the slider adjusters for the belt.
We gave Matthew this along with a hard hat and a small tool bench with tools. To top it all off, Santa brought him a car that can be taken apart with a battery operated drill - probably his favorite gift of all. He's been having a blast "fixing" things!
