For Immediate Release: January 22, 2021
Susan Orenga, USCTI, 216-241-7333
November 2020 U.S. Cutting Tool Orders Down 9.9% from October 2020
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, “As we know the cutting tool industry is dependent on the health of the nation's manufacturing economy, and we see recovery is in process. The industry numbers reflect the usual year end fluctuations, but in general there is optimism for continued recovery.”
"The year-over-year numbers reflect what we are seeing in our business and hearing from the metalworking industry in general. We see the effects of the pandemic again in this month's report, but there is some improvement over the lows of last summer. In general, orders for consumable products for ongoing production are faring better than new capital equipment but low interest rates, relatively easy access to capital and another round of PPP for small companies under 300 employees, might help speed up this recovery for 2021,” commented Chris Kaiser, Executive Advisor at Big Kaiser.
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.