May U.S. cutting tool consumption totaled $191.93 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 up 14.2% from April’s $168.03 million and up 15.5% when compared with the total of $166.25 million reported for May 2016. With a year-to-date total of $908.04 million, 2017 is up 5.8% when compared with 2016.

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.

“The Cutting Tool Industry is feeling the strong activity, supported by May’s positive numbers,” says Brad Lawton, chairman of AMT’s Cutting Tool Product Group. “As domestic manufacturing growth is projected to continue, 2017 will be a much better year for the Cutting Tool Industry.”

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.

Investment in equipment and software is expected to grow 3.6% in 2017, according to the Q3 update to the 2017 Equipment Leasing & Finance U.S. Economic Outlook released by the Equipment Leasing & Finance Foundation. The Foundation revised its 2017 equipment and software investment growth forecast up from 2.8% growth expected in its Q2 update to the 2017 Economic Outlook released in April. The report predicts that equipment and software investment should continue to bounce back from a lackluster 2016 after a solid start in the first quarter of 2017, driven by overall improvements in business confidence and a more positive outlook for the industrial sector. The Foundation’s report, which is focused on the $1 trillion equipment leasing and finance industry, highlights key trends in equipment investment and places them in the context of the broader U.S. economic climate. The report will be updated quarterly throughout 2017.

Ralph Petta, president of the Foundation and president and CEO of the Equipment Leasing and Finance Association, says, “Stronger-than-expected first quarter capital investment points to a more robust forecast for the year. This is borne out not only by industry performance metrics, but also by anecdotal reports from leasing and finance executives in a variety of key industry sectors. Headwinds emanating from Washington, DC may alter this trajectory as the summer wears on, but, for now, it appears that 2017 growth should eclipse that in 2016."

Highlights from the study include:

• Equipment and software investment experienced a bright first quarter of 2017 growing at an annualized rate of 7.4%, its strongest pace in two years. Stabilized oil prices, improved business confidence and credit market stability should lead to solid investment growth of 3.6% in 2017, a significant improvement over 2016.
• U.S. economic growth in the second half of 2017 is likely to yield a notable improvement on first quarter growth of just 1.4% due to a rebound in consumer spending, solidly positive business investment and a strengthening global economy. Overall, the U.S. economy is projected to grow 2.4% in 2017—a slight downgrade from 2.5% in the Foundation’s Q2 forecast, but still a significant improvement over 1.6% growth in 2016.
• Though 2017 is shaping up to be a better year for U.S. economic growth than 2016, headwinds to watch include U.S. trade policy uncertainty and budget battles. Continued political gridlock also makes it increasingly unlikely that Congress will agree on major pro-growth legislation such as tax cuts or infrastructure spending in 2017.
• The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, which is included in the report, tracks 12 equipment and software investment verticals. The Momentum Monitor Sector Matrix provides a customized data visualization of current values of each vertical based on recent momentum and historical strength. Of the 12 verticals, 11 posted positive annualized growth in Q1. Over the next three to six months:
  • Medical equipment investment growth is likely to weaken.
  • Agriculture machinery investment may grow modestly on a year-over-year basis.
  • Construction machinery investment growth is likely to improve somewhat.
  • Materials handling equipment investment should improve.
  • All other industrial equipment investment should maintain a slow growth trajectory.
  • Mining and oilfield machinery investment growth should continue a strong recovery.
  • Aircraft investment growth may decelerate.
  • Ships and boats investment growth is expected to strengthen.
  • Railroad equipment investment growth should continue to improve.
  • Trucks investment growth is poised for a resurgence.
  • Computers investment growth is set to improve.
  • Software investment growth should remain steady.

The Foundation produces the Equipment Leasing & Finance U.S. Economic Outlook report in partnership with economic and public policy consulting firm Keybridge Research. The annual economic forecast provides a three-to-six month outlook for industry investment with data, including a summary of investment trends in key equipment markets, credit market conditions, the U.S. macroeconomic outlook and key economic indicators. The Q3 report is the second update to the 2017 Annual Outlook, and will be followed by one more quarterly update before the publication of the 2018 Annual Outlook in December.

Metal laser melting continues to pave the way for ground-breaking success in the medical technology sector. One example is the use of a 3D-printed bone drill, capable of preventing possible tissue damage during operations with traditionally manufactured drills.

Mitigating damage
The Institute of Production Engineering and Machine Tools (IFW) at the Leibniz University in Hannover, Germany, turned to Toolcraft while carrying out a research and development project for a machining tool capable of cutting bone without causing thermal-induced osteonecrosis – heat produced when cutting bone may cause tissue damage, which occurs at temperatures ~48°C and higher. Since cooling the tool may cause fluid to enter the wound, it is not possible to use conventional tools with a cooling system. Presently, surgery is performed iteratively, where the drilling process is repeatedly interrupted in order to keep the temperature as low as possible.

Consistently low temperatures
Today, the use of metal laser melting makes it possible to manufacture drills with integrated cooling ducts, allowing the coolant to flow inside the tool – along the helix and back to the tool holder – without coming into contact with the wound. Toolcraft also developed a non-rotating pre-spindle attachment with an inflow and outflow function for the coolant. A continuous supply of coolant is ensured by the attached coolant tank and pump. The internally cooled prototype was modelled on a conventional bone drill with a diameter of 6mm. The drill's shape had to be kept the same to make it easier for users to adapt to the new tool. It was also important that the material used is well tolerated by patients. A flow and return pipe ensures a continuous flow of coolant. The internal circular cooling ducts with a diameter of 1.2mm take the thermal energy away from the cutting edge. Horizontal drilled holes were added which link the cooling circuit to the drill so that the coolant can be supplied and taken away. A circlip groove is used to attach the manifold. Sealing the two chambers in the manifold posed a further challenge.

Step by step to success
At the outset of the project, the cooling capacity was determined in terms of the volumetric flow rate, temperature, and thermal capacity of the coolant. The project team then developed a method for bringing a closed cooling circuit into the tool substrate while maintaining tool stability and ensuring that the tool was suitable for performing the required processes. The biocompatible material 1.4404 was selected for the drill and its shape and the internal cooling ducts was designed by Schmidt WFT using CAD and simulation software. After the drill was produced using 3D printing and the tool was machined to its final size, practical tests were performed by IFW. Using water as a coolant, IFW drilled and measured the process temperature in artificial and bovine bone, measuring reference temperatures at higher and lower feed rates and when the tool cooling system was turned on and off.

Improving surgical procedures
The results of the drilling tests show that the innovative drill significantly reduces the temperature produced by up to around 70%. Thanks to the ability of the internal cooling system to compensate for increases in temperature, low feed rates no longer lead to higher temperatures. The choice of tool has a considerable impact on the success of bone surgery. Excessively high process temperatures put bones at risk of damage during almost all bone cutting procedures. This means that the technology could also be beneficial in a wide variety of other areas, such as the manufacture of saws.

Source: MBFZ toolcraft GmbH

According to AMT – The Association For Manufacturing Technology, May orders were up 3.1% over April, and 21.8% over May 2016.

Automotive customers made some significant orders in the month, and continued investment from machine shops indicates that manufacturers are seeking additional capacity. The gains in manufacturing technology orders are in line with other positive economic indicators for the manufacturing industry: industrial production, rising exports, continued industry expansion as indicated by the PMI, and strong consumer sentiment.

“As we’ve now seen year-over-year growth for four consecutive months, and with that growth acceleration, all signs indicate a continued trend of strength for the manufacturing technology industry,” said AMT Vice President – Strategic Analytics Pat McGibbon. “With activity growing in many geographic regions and continued strengthening in key industries like job shops, autos and aerospace, all of this suggests the market will continue to grow and stay strong for the coming months.”

Orders for May 2017 totaled $351.85 million, compared to $341.33 million in April and $288.93 million in May 2016. Year to date, orders are valued at $1,667.18 million, compared to $1,552.37 million for the same point in 2016. USMTO is a reliable leading economic indicator as manufacturing companies invest in capital metalworking equipment to increase capacity and improve productivity.