For Immediate Release: November 18, 2019
Susan Orenga, USCTI, 216-241-7333
U.S. Cutting Tool Orders Up 0.2% In September 2019 YTD/YTD
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.
According to Brad Lawton, Chairman of AMT’s Cutting Tool Product Group, “The September numbers focus on the one word that describes our everyday attitudes ‘uncertainty,’ and not having a clue of what to expect from our domestic economy and the global economy. So the further understanding of this issue is ever-present from the media, political wars in Washington, the global trade wars, and the overall effects of these issues on the global economies. The changes are not recessionary, but the changes are concerning.”
“It's no surprise that U.S. cutting tool consumption continues to slow on a year-over-year basis as machine tool sales weaken and the manufacturing sector enters a recession — primarily because of the U.S.-China trade. Though cutting tool consumption year-to-date remains slightly ahead of 2018, the cutting tool market will likely continue to soften for the remainder of the year and into 2020 as sales are typically at their low points from November through February — even in years when manufacturing output is rising,” said Alan Richter, Editor of Cutting Tool Engineering Magazine.
Alan added, “Another element to consider is that cutting tool manufacturers keep developing and introducing new tool grades that last longer than previous grades enabling part manufacturers to increase throughput. Although the new tools might cost more initially, end-users who set their sights on long-term rather than short-term cost savings are able to reduce their overall production costs by boosting productivity. Toolmakers may sell less product, but their customers increase their competitiveness and are able to survive and, hopefully, thrive as a result of purchasing higher-performing cutting tools.”
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.