Cleveland, Ohio – May 2018 U.S. cutting tool consumption totaled $215.13 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 up 5.6% from April’s $203.68 million and up 12.1% when compared with the $191.93 million reported for May 2017. With a year-to-date total of $999.82 million, 2018 is up 10.1% when compared with 2017.
These numbers and all data in this report are based on the totals reported by the companies participating in the CTMRprogram. The totals here represent the majority of the U.S. market for cutting tools.
“The cutting tool industry continues to show improved growth in 2018. The ball is still rolling with positive numbers despite the chaos with global trade agreements,” says Brad Lawton, chairman of AMT’s Cutting Tool Product Group.
“The cutting tool results match overall economic indicators and continue to show strength in the manufacturing sector,” says Costikyan Jarvis, president of Jarvis Cutting Tools. “With cutting tools showing a 12.1% year-over-year growth, the PMI at 60.2 in June, and consumer confidence a strong 126.4 in June, it would indicate that the economic train is going nicely down the tracks. This should be a great time to be in manufacturing."
However, Jarvis adds that “it would be impossible not to mention the tariffs and potential trade wars and how these issues have the possibility to derail the economic train. The 25 percent steel tariffs are only starting to be seen in the economy and it is not clear how the NAFTA negotiations will end. Additionally, we have picked fights with our North American neighbors, our NATO allies, and economies like China.
“It is a great concern how these costs and negotiations will alter the ability for American manufacturers to compete,” Jarvis says. “The opposing tariffs, which have already been created, will have a significant impact on the agricultural sector of the economy. This will inevitably trickle down to a reduced demand for the tractors, combines, and other equipment that is manufactured for the farms. How other costs affect the larger industries like the automobile and aerospace segments remains to be seen. As someone else said, ‘an eye for an eye can leave everyone blind.’”