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US Cutting Tool Orders Totaled $189.6 Million in July 2023, Bringing Year-to-Date Total Up 9.4% From 2022

July 2023 U.S. cutting tool consumption totaled $189.6 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology.
Sep 27, 2023

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McLean, Va. (September 27, 2023) — July 2023 U.S. cutting tool consumption totaled $189.6 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 down 12.7% from June’s $217.3 million and up 4% when compared with the $182.4 million reported for July 2022. With a year-to-date total of $1.43 billion, 2023 is up 9.4% when compared to the same time period in 2022.

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.

“July is typically a slow month due to plant shutdowns and employee vacations. This year was no exception,” commented Jack Burley, chairman of AMT’s Cutting Tool Product Group. He further expanded, “Cutting tool consumption remains at a consistent level despite the news of declining activity in manufacturing. Automotive sales in 2023 have rebounded now that the supply chain issues have been mostly resolved. However, the recent labor dispute is likely to disrupt production for not only the big three but also for all supply chain partners, which may affect cutting tool usage later this year if it isn’t resolved quickly.”

Steve Stokey, executive vice president and owner of Allied Machine and Engineering, expressed similar sentiment, saying: “While July shipments are typically down compared to June, July 2023 had the steepest decline since 2016. The value of shipments through July is up nearly 10%, but unit shipments remain flat. This indicates that a good bit of the growth we are seeing is due to the lingering effects of inflation in the cutting tool market. The onset of the autoworker strike as well as continued high interest rates may cause the industry to proceed cautiously for the remainder of the year.”

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.

The graph below includes the 12-month moving average for the durable goods shipments and cutting tool orders. These values are calculated by taking the average of the most recent 12 months and plotting them over time.

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AMT – The Association For Manufacturing Technology 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. AMT is 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. AMT owns and manages IMTS – The International Manufacturing Technology Show, which is the premier manufacturing technology event in North America.

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. 

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Author
Christopher Chidzik
Principal Economist
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