The Cutting Tool Market Report (CTMR) News Release
For Immediate Release: June 15, 2020

 

Contact:

Pat McGibbon, AMT, 703-827-5255
pmcgibbon@AMTonline.org

Susan Orenga, USCTI, 216-241-7333
sorenga@thomasamc.com
 

 

 April 2020 U.S. Cutting Tool Orders Down 14.4% from April 2019

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April 2020 U.S. cutting tool consumption totaled $142.9 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 24.7 percent from March's $189.8 million and down 31.1 percent when compared with the $207.5 million reported for April 2019. With a year-to-date total of $717.5 million, 2020 is down 14.4 percent when compared with April 2019.

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 Bret Tayne, President of USCTI, “The precipitous drop in April cutting tool industry sales numbers confirms what many of us have experienced.  The good news is that some economic forecasts and macro market indicators point to improvement as we enter the second half of the year.”

“The latest data from April simply quantifies ‘how bad’ the news is for our industry.  It also appears the bad news will continue through the months ahead.  The drop in oil prices along with COVID-19’s impact on automotive,  aerospace and support industries has left its trail of destruction,” said Steve Stokey, Executive VP and Owner of Allied Machine and Engineering, adding, “Survival and understanding the ‘new normal’ is what is driving most decisions now-a-days. One positive tidbit to note is the resiliency of our industry. Companies have implemented changes and innovated at unprecedented speeds.  The phrase ‘Innovate or Die’ has never been more relevant than it is today.”

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 LogoAMT – 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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