US cutting tool 2017 YTD consumption up 4.5% in February

US cutting tool 2017 YTD consumption up 4.5% in February

‘There is a feeling of optimism in the air that is backed up by the positive growth the cutting tool market data shows after the first 2 months of the year,’ says Steve Stokey, president of USCTI.

April 15, 2017
Manufacturing Group
Tooling/Workholding

February U.S. cutting tool consumption totaled $174.98 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 1.1% from January’s $173.05 million and up 0.6% when compared with the total of $173.88 million reported for February 2016. With a year-to-date total of $348.02 million, 2017 is up 4.5% 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.

“There is a feeling of optimism in the air that is backed up by the positive growth the cutting tool market data shows after the first 2 months of the year,” says Steve Stokey, president of USCTI. “Manufacturing continues to be a hot topic and continues to have a seat at the table in the new Trump administration. The strong dollar will continue to challenge our ability to export but with the US automotive and aerospace markets remaining steady, it should provide a firm foundation for growth as the other industrial sectors rebound from a weak 2016. This should bode well for cutting tool manufacturers.”

Scott Hazelton, managing director of economics & country risk at IHS Markit adds that “The economy is enjoying improved business and consumer confidence, resulting in strong momentum in employment growth and single family housing as well as a rebound in nondefense capital spending, including the important energy sector. Consumption of cutting tools is forecasted to respond with increasing growth over the year. Acceleration of growth in 2018 is expected as tax reform and infrastructure investment enhance the investment outlook.”

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.

Cutting tool market report FAQs
what is the cutting tool market report?
The Cutting Tool Market Report (CTMR) program measures gross cutting tool shipments each month based on data collected from manufacturers by the United States Cutting Tool Institute (USCTI) and AMT - The Association For Manufacturing Technology. The report provides national U.S consumption data of domestic and imported tools, including domestically produced and imported.

What are cutting tools?
Cutting tools are used in machine tools to shape raw material into parts or remove additional material from existing parts. Examples of cutting tools include drills, countersinks, taps, milling cutters, boring bars, indexable inserts, and many others.

Why is the CTMR important?
Cutting tools are a consumable product used to turn raw materials into intermediate goods and intermediate goods into finished goods. Because tooling needs to be replaced relatively frequently, trends in U.S. cutting tool shipments are a good measure of overall manufacturing activity. Official Census statistics on cutting tools are only published once a year, so the monthly CTMR figures are important to business owners and decision makers who need a more frequent indicator of market conditions. Cutting tools have much shorter lead times than machine tools and other capital equipment, which means sales figures are much less volatile from month to month and react more quickly to changes in manufacturing activity.

Who owns the CTMR?
The report is a joint effort of the United States Cutting Tool Institute (USCTI) and AMT - The Association For Manufacturing Technology. Each organization collects and reports statistics via survey, and the CTMR figures represent a combined total after accounting for overlapping survey contributions.