US cutting tool YTD consumption down 6.9% in October

US cutting tool YTD consumption down 6.9% in October

With the uncertainty of the election behind us, businesses should be in a better position to confidently implement their plans, according to Steve Stokey, president of USCTI.

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December 16, 2016

Cleveland, Ohio – October U.S. cutting tool consumption totaled $168.99 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 1.6% from September’s $171.67 million and 4.7% when compared with the total of $177.35 million reported for October 2015. With a year-to-date total of $1.698 billion, 2016 is down 6.9% 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.

“The cutting tool year-over-year data continues to indicate 2016 is moving in the right direction,” says Steve Stokey, president of USCTI. “With the uncertainty of the election behind us, businesses should be in a better position to confidently implement their plans. This should have a positive impact on the marketplace as we move into 2017.”

Greg Daco, head of U.S. economics at Oxford Economics adds that “after experiencing extreme volatility this summer, cutting tool shipments have stabilized. Overall, while the trend in durable goods orders and shipments remains soft, back-to-back monthly gains in orders are a signal activity may soon turn around. Looking forward, leading manufacturing indicators point to moderate growth supported by firming global activity and stabilizing domestic activity. The uncertainty surrounding a Trump presidency remains elevated, but there are indications that he will prioritize his pro-growth fiscal agenda over his protectionist agenda.”

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.

Source: USCTI & AMT