For Immediate Release: February 11, 2016
Susan Orenga, USCTI, 216-241-7333
U.S. Cutting Tool YTD Consumption down 5% in December
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 December’14 to December ‘15 decrease of 15.4% is most reflective of the current environment in the Cutting Tool industry,” says Steve Stokey, President of USCTI. “We started 2015 strong with a significant decline during the second half of the year. The drop in oil prices, which softened the market, along with the strengthening dollar caused a dramatic decrease in demand in the last half of 2015.”
Overall, manufacturing in general has had some challenges. According to William A. Strauss, Senior Economist and Economic Advisor to the Federal Reserve Bank of Chicago, “The strengthening dollar has been a very strong headwind facing U.S. manufacturers. The real value of the trade-weighted dollar has increased nearly 20% in the past year and a half. This has caused U.S. goods to be 20% more expensive on average to foreign consumers, and vice versa, imports are now 20% less expensive to U.S. consumers. This has led to a substantial increase in the trade deficit over the same time period.”
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.