verb (used with object)
to replace or rearrange the tools and machinery of (a factory).
to reorganize or rearrange, usually for the purpose of updating: to retool the industrial organization.
verb (used without object)
to replace or rearrange the tools of a factory.
to replace the stamping machinery of a factory, especially to make a remodeled product.

1935–40; re- + tool

retoolable, adjective Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
retool (riːˈtuːl)
1.  to replace, re-equip, or rearrange the tools in (a factory, etc)
2.  chiefly (US), (Canadian) to revise or reorganize

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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Word Origin & History

1866, "to shape again with a tool," from re- "back, again" + verb form of tool (q.v.). Meaning "to furnish a factory with new equipment" is recorded from 1940.
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
We must retool and build electric, hybrid, and other engines now.
Plenty of people in industry and the private sector had to retrain or retool themselves for different functions.
Reinforced data may help as they retool their strategies.
Retool hatchery operations to support wild fish recovery.
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