Cutting tool market posts strong first half in 2018

Cutting tool market posts strong first half in 2018

With a year-to-date total of $1.213 billion, 2018 is up 10.8% when compared with 2017.

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Economy/M&A Tooling/Workholding

The above graphic has been updated to include the 12-month moving average for the durable goods shipments and cutting tool orders. These values are calculated by taking the average of the most recent 12 months and plotting them over time.

June U.S. cutting tool consumption totaled $212.83 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 collaboration, was down 1.1% from May’s $215.13 million and up 14.1% when compared with the $186.57 million reported for June 2017. With a year-to-date total of $1.213 billion, 2018 is up 10.8% when compared with 2017.

These numbers and all data in this report are based on the totals reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools.

“June sales totals build the year-over-year and the year-to-date volume increases to over 10% and 14%, respectively, with no signs of softening. Tariffs and raw material challenges continue to be the headlines but not enough to stop the growth. It appears the momentum could last well into the fourth quarter,” says Philip Kurtz, president of USCTI.

“New orders continue to be supported by a strong environment for manufacturing and business investments, with activity particularly elevated in the electrical and industrial machinery sectors,” states Mark Killion, director of U.S. industry at Oxford Economics.

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.

Historical data for the Cutting Tool Market Report is available dating back to January 2012. This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology.

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