Susan Orenga, USCTI, 216-241-7333
U.S. Cutting Tool 2017 YTD Consumption up 7.1% in July
July U.S. cutting tool consumption totaled $170.95 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 8.4% from June’s $186.57 million and up 16.0% when compared with the total of $147.43 million reported for July 2016. With a year-to-date total of $1.266 billion, 2017 is up 7.1% when compared with 2016.
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 industry certainly is on a pace to exceed 2016’s totals,” says Brad Lawton, Chairman of AMT’s Cutting Tool Product Group. “And with the continuation of strong domestic economic growth, there is a potential recovery to the industry levels of 2015.”
Eli Lustgarten, Senior Vice President at Longbow Securities, comments that, “Cutting tool demand continues its moderate recovery though the monthly data remains volatile. While July 2017 consumption showed a seasonal decline of 8.4% from June, results were 16% above the comparable month a year ago. Year to date consumption is up 7.1% and appears to be mostly demand driven with some modest restocking helped by the current moderate improvement in both on and off-highway markets including a recovery in mining and oil and gas sectors. We expect cutting tool demand to continue its current moderate recovery for the remainder of 2017, despite somewhat tougher monthly comparisons and the ongoing modest recovery in manufacturing industrial production (up 1.2% year to date).”
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.
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The United States Cutting Tool Institute (USCTI) was formed in 1988 and resulted from a merger of the two national associations representing the cutting tool manufacturing industry. USCTI 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. The Institute recently expanded its by-laws to include any North American manufacturer and/or remanufacturer of cutting tools, as well as post-fabrication tool surface treatment providers. Members, which number over 80, belong to seven product divisions: Carbide Tooling, Drill & Reamer, Milling Cutter, PCD & PCBN, Tap & Die, Tool Holder and All Other Tooling. A wide range of activities includes a comprehensive statistics program, human resources surveys and forums, development of product specifications and standards, and semi-annual meetings to share ideas and receive information on key industry trends.