Susan Orenga, USCTI, 216-241-7333
U.S. Cutting Tool Consumption Up 5.2 Percent In May
For Release: July 12, 2019
May 2019 U.S. cutting tool consumption totaled $213.4 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 up 2.9 percent from April's $207.5 million and down .8 percent when compared with the $215.1 million reported for May 2018. With a year-to-date total of $1.1 billion, 2019 is up 5.2 percent when compared with 2018.
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 Market is now showing indications of the promised overall slowdown in the economy. The YTD/YTD numbers are no longer showing the double digit growth of 2018. Summer domestic slowdowns, international trade issues and global declining economies are confirming a changing Cutting Tool Market,” said Brad Lawton, Chairman of AMT’s Cutting Tool Product Group.
According to Steve Kline Jr., Chief Data Officer at Gardner Business Media, “May’s cutting tool orders were quite strong as only eight of the last 89 months had a higher total in real dollars. However, compared with one year ago, orders have contracted for three straight months. Based on the Gardner Business Index, cutting tool orders are likely to contract for the remainder of 2019.”
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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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.