U.S. Cutting Tool Orders Remain Flat

January U.S. cutting tool consumption totaled $153.14 million according to the U.S. Cutting Tool Institute (USCTI; Cleveland, OH) and AMT – The Association For Manufacturing Technology (McLean, VA). This total, as reported by companies participating in the the Cutting Tool Market Report (CTMR) collaboration, was down 2.1 percent from December’s $156.48 million and down 16.7 percent when compared with the total of $183.91 million reported for January 2015.

These numbers and all data in this report are based on the totals actually reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools. “The declining statistics, coupled with the uncertainty in the manufacturing sector, leads to continued caution for the cutting tool industry,” stated Brad Lawton, the chairman of AMT’s Cutting Tool Product Group.

But coupled with these concerns are some bright spots to look at when thinking of the future of the cutting tool market. “Cutting tool shipments have been relatively soft since September, most likely due to a contraction in durable goods new orders,” noted Steve Kline, the director of market intelligence at Gardner Business Media. “However, there are some signs of improvement in durable goods new orders, a key leading indicator of cutting tool shipments. New orders in the automotive and aerospace industries have been particularly strong in recent months. This corroborates anecdotal evidence from the recent MFG Meeting, where I heard from a number of suppliers that the automotive, aerospace, and medical industries continue to be strong markets.”

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 is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology.

AMT 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. They are 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. They own and manage IMTS – The International Manufacturing Technology Show, which is the premier manufacturing technology event in North America.

The USMTO 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  program.

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 amton: carbide tooling, drill and reamer, metal cutting saw blades, milling cutter, polycrystalline diamond and polycrystalline cubic born nitride, substrate materials, surface coating, tap and die, tool holder and all other tooling.

A wide range of USCTI 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.

www.uscti.com,  www.amtonline.org