January U.S. cutting tool consumption totaled $153.14 million according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report (CTMR) collaboration, was down 2.1% from December’s $156.48 million and down 16.7% when compared with the total of $183.91 million reported for January 2015.
These numbers and all data in this report are based on the totals actually reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools.
“The declining statistics coupled with the uncertainty in the manufacturing sector leads to continued caution for the Cutting Tool Industry,” says Brad Lawton, chairman of AMT’s Cutting Tool Product Group.
However, coupled with these concerns there are still some bright spots to look at when thinking of the future of the cutting tool market. “Cutting tool shipments have been relatively soft since September, most likely due to a contraction in durable goods new orders,” says Steve Kline, Director of Market Intelligence at Gardner Business Media . “However, there are some signs of improvement in durable goods new orders, a key leading indicator of cutting tool shipments. New orders in the automotive and aerospace industries have been particularly strong in recent months. This corroborates anecdotal evidence from the recent MFG Meeting where I heard from a number of suppliers that the automotive, aerospace, and medical industries continue to be strong markets.”
The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process – the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.