Contact: Pat McGibbon, AMT, 703-827-5255
Susan Orenga, USCTI, 216-241-7333
Susan Orenga, USCTI, 216-241-7333
For Release: March 13, 2019
U.S. Cutting Tool Consumption Up 13.4 Percent In January
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.
“As the Cutting Tool Industry starts 2019, the review of 2018 shows a good growth of 13%. The reasonable question for all is, will 2019 continue to show the economic strength or will the forecasts come true with an end of year slowing? The Cutting Tool Industry has done well in spite of material cost increases, labor shortages and global trade unrest and we are poised to continue,” said Brad Lawton, Chairman of AMT’s Cutting Tool Product Group.
According to Eli Lustgarten, President of ESL Consultants, “Cutting tool consumption continued at high levels in January 2019 rising 13.4% Y/Y, in line with the 12.5% reported for calendar 2018. Demand is consistent with recent Institute of Supply Management’s Purchasing Managers Index of 56.6 and 54.2 in January and February which suggests a moderating but firm manufacturing sector in the first half of 2019. However, storm clouds continue to be visible with automotive and housing demand slowing, volatile energy and commodity prices, ongoing trade tensions and the unfolding global economic slowdown particularly in China and the EU. Comparisons will get tougher as the year progresses with orders likely to trail shipments. This sets the stage for a slower second half of 2019 into 2020 without some positive economic stimulation.”
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 (AMT) represents U.S.-based builders and distributors of manufacturing technology – the advanced machinery, devices, and digital equipment that U.S. manufacturing relies on to be productive, innovative, and competitive. Located in McLean, VA, near the nation’s capital, AMT acts as the industry’s voice to speed the pace of innovation, increase global competitiveness and develop manufacturing’s advanced workforce of tomorrow. With extensive expertise in industry data and intelligence, as well as a full complement of international business operations, AMT offers its members an unparalleled level of support. AMT also produces IMTS – The International Manufacturing Technology Show, 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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