DIY Network has the full step by step on this project linked below but it s super simple, whether you have the pegboard backing or not.
Just drill some small holes in the scrap wood, run the elastic cord through the holes, and die them down to the spaces with a little twine or heavy string to keep them in place.
Since the whole thing is mounted to a piece of wood, you can mount the wood on the wall of your garage or workshop directly, or if you re using some pegboard backing like the photo above, you can use some more of that strong or a couple of metal hooks or screws to secure it to the pegboard.
However you mount it, make sure it can stand the weight of the tools you have in it, and you ll be good to go.
Photo by Emily Fazio.
Thanks to Jim for the tip!