US cutting tool YTD consumption totaled $154.28M in November

US cutting tool YTD consumption totaled $154.28M in November

With a year-to-date total of $1.867 billion, 2016 is down 5.7% when compared with 2015.

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January 13, 2017

McLean, Virginia and Cleveland, Ohio – November U.S. cutting tool consumption totaled $168.69 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 0.2% from October’s $168.99 million and up 9.3% when compared with the total of $154.28 million reported for November 2015. With a year-to-date total of $1.867 billion, 2016 is down 5.7% when compared with 2015.

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.

“Since the November elections, the cutting tool industry has been following the economic indicators and the growing optimism for an improving manufacturing market,” says Brad Lawton, chairman of AMT’s Cutting Tool Product Group. “The current monthly shipment numbers are not showing this increase, but we are anticipating improvements certainly by the end of the first quarter. The Cutting Tool Industry is poised and ready to respond to this increased demand.”

Scott Hazelton, managing director of economics & country risk at IHS Markit, adds to the positive outlook of the coming months. “Sales for the U.S. cutting tool industry should return to growth mode in the first half of 2017 as higher oil prices re-invigorate the energy sector and add to steadily improving manufacturing fundamentals. Oil price increases are expected to slow and growth in the important transportation equipment sector will also taper off,” Scott says. “As such, 2017 growth will be temperate with stronger performance in 2018 as U.S. business investment picks up.”

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.

AMT – The Association For Manufacturing Technology represents and promotes U.S.-based manufacturing technology and its members – those who design, build, sell, and service the continuously evolving technology that lies at the heart of manufacturing. Founded in 1902 and based in Virginia, the association specializes in providing targeted business assistance, extensive global support, and business intelligence systems and analysis. AMT is the voice that communicates the importance of policies and programs that encourage research and innovation, and the development of educational initiatives to create tomorrow’s Smartforce. AMT owns and manages IMTS – The International Manufacturing Technology Show, which is the premier manufacturing technology event in North America. The CTPG report is compiled by AMT and all data in the report is based on the totals of actual data reported by companies participating in the CTPG program.

The United States Cutting Tool Institute (USCTI) was formed in 1988 and resulted from a merger of two national associations representing the cutting tool manufacturing industry. The Institute works to represent, promote, and expand the U.S. cutting tool industry and to promote the benefits of buying American-made cutting tools manufactured by its members. Membership includes North American manufacturers and/or remanufacturers of cutting tools, as well as tool surface treatment providers. Members, which number over 70, belong to ten product divisions: carbide tooling, drill & reamer, metal cutting saw blades, milling cutter, polycrystalline diamond & polycrystalline cubic born nitride, substrate materials, surface coating, tap & die, tool holder, and all other tooling. A wide range of activities include a comprehensive statistics program, human resources surveys, development of product specifications and standards, and semi-annual meetings to share ideas and receive information on key industry trends.

Source: AMT & USCTI