For Immediate Release: Month DD, YYYY
Susan Orenga, USCTI, 216-241-7333
U.S. Cutting Tool Consumption Up 3.2 Percent In June
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.
“With over a 6% drop in volume from both May’s report and June 2018 report, we are starting to see the market soften. While some of the softening is due to seasonality, the balance of the decrease reflects the European economies that have been slowing for a few months, while the U.S. economy shows signs of slowing slightly. These two factors combined with the overhanging cloud of potential trade wars may keep pressuring the market through the end of 2019. It is important to note that YTD 2019 remains 3.2% higher than YTD 2018 which supports the overall market strength in the 1st half of 2019,” said Phil Kurtz, President of USCTI.
According to Chris Kaiser, President and CEO of Big Kaiser Precision Tooling, “After a great start into 2019, it looks like cutting tools are on a downward trend following the lead of metal cutting machine tool orders. It’s not necessarily a surprising development, since several industry segments and markets, like oil and gas, aerospace and the automotive sector are struggling at the moment. This all seems congruent with developments in certain European countries too, like Germany. The trend for us seemed to improve going into July. I imagine we’ll go through some roller-coaster months going forward for the next 12 months. This development reminds us a little of the 2015/16 timeframe.”
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.