Comparison of Siding Materials for Storage Units - Natural wood is considered by many the most attractive siding for storage units. But wood exposed over time to water usually rots. Some woods, however, contain natural resins that make them relatively rot-resistant. Cedar is such a wood and very popular as a siding choice for storage units. But even cedar siding is not maintenance-free. Coat cedar with a UV-inhibiting sealer/preservative every other year to protect it from ultraviolet solar radiation. Apply a clear stain, as well, to help preserve its natural beauty.
If you want to go a step further and separate your tools, you'll need to get a bit more creative. One way is to utilize PVC pipe to make containers for your tools by attaching to two pieces of wood and hanging that from the wall. Another solution is to utilize a pegboard for your larger items as well, as they can hang from hooks similarly to smaller items.