July U.S. cutting tool consumption totaled $200.97 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 5.4 percent from June’s $212.36 million and up 17.6 percent when compared with the $170.95 million reported for July 2017. With a year-to-date total of $1.413 billion, 2018 is up 11.7 percent when compared with 2017.
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 the Gardner Business Index, 2017 was a very strong year for the metalworking industry. But, 2018 has been even better, with the index averaging a higher level this year compared with last year. Since the GBI is a great leading indicator for cutting tool orders, it is no surprise cutting tools orders have increased 9.3 percent year over year [inflation adjusted orders]. Orders should remain strong into 2019,” said Steve Kline, Jr., Chief Data Officer of Gardner Business Media.
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.