June 2022 U.S. cutting tool consumption totaled $175.9 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 0.3% from May’s $175.4 million and up 2.2% when compared with the $172.1 million reported for June 2021. With a year-to-date total of $1.1 billion, 2022 is up 7.9% when compared to the same time period in 2021.
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.
“As we approach the mid-year seasonal slowdown, June’s numbers dropped almost a half of a percentage point from May,” comments Jeff Major, president of USCTI. “Our industry continues to endure the many economic challenges brought on by the pandemic. Manufacturing remains somewhat steady despite the concerns of a potential recession. Reports of an easing in microchip shortages will certainly help certain market segments in manufacturing, primarily automotive.”
Christopher Chidzik, principal economist at AMT, also spoke on material shortages, stating, “While shipments appear to have hit a plateau, the value of those shipments in 2022 are at the highest monthly average since 2019. There is still some way to go before monthly orders match their pre-pandemic levels. Shortages of materials, particularly certain metals, mean there is an upper limit on the number of tools that can currently be used. Shops only need as much tooling as they have metal to work. If these challenges can be alleviated and consumer demand for manufactured goods and capital-intensive services remains strong, the second half of 2022 could see monthly order activity return to pre-pandemic levels.”