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craft-made
Relating to a craft or produced through manual work and skill. It describes the quality and manner in which an activity is carried out.
Diese handwerklich gefertigten Schuhe sind sehr langlebig.
These craft-made shoes are very durable.
The adjective 'handwerklich' (craft-related/technical) derives directly from the noun 'das Handwerk' (craft/trade). 'Handwerk' itself consists of 'Hand' (hand) and 'Werk' (work). The meaning therefore always relates to the quality of execution or the manner of production.
Für diesen Beruf braucht man viel handwerkliches Geschick.
For this profession, you need a lot of manual skill.
'Handwerklich' (craft-related/technically) can stand as an adjective before a noun or as an adverb describing a verb or another adjective. As an adverb, it answers the question 'Wie?' (How?), meaning in what manner something is made or done.
Das ist eine handwerklich anspruchsvolle Arbeit.
That is technically demanding work.
In the figurative meaning, 'handwerklich' (technically/from a craftsmanship point of view) is often used in reviews (e.g., of films, books, music) to separate the technical execution from the content. A typical formulation is 'handwerklich gut, aber inhaltlich schwach' (technically good, but weak in content).
Der Krimi ist handwerklich solide, aber die Auflösung enttäuscht.
The crime novel is technically solid, but the resolution is disappointing.
technical
'technisch' and 'handwerklich' can both describe the execution of a piece of work or a particular skill. 'technisch' emphasizes the exact method or clean execution, for example in sports, music, or art. 'handwerklich' puts more emphasis on practical work with the hands or solid workmanship. In a figurative sense, however, 'handwerklich' can also be meant for film, writing, or art. That is why the words can be confused. 'technisch' fits better with the method, while 'handwerklich' fits better with the work that has been made and its quality.
In der Bibliothek sah ich eine handwerklich sehr gut gemachte Ausstellung aus Holz.
In the library, I saw a very well-crafted exhibition made of wood.
Morgen übt er im Training besonders die technisch schwierigen Bewegungen.
Tomorrow in training, he will practice the technically difficult movements in particular.