February 2019 U.S. cutting tool consumption totaled $205.6 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 4.4 percent from January’s $215.1 million and up 8 percent when compared with the $190.3 million reported for February 2018. With a year-to-date total of $420.7 million, 2019 is up 13 percent when compared with 2018.
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 a significant market share of the U.S. market for cutting tools.
“The 8% year over year increase posted in February reflects the continuing strength in the U.S. manufacturing base. We are hearing of signs that the market’s growth rate may slow later this year but February’s results are getting the year off to a good start,” says Phil Kurtz, President of USCTI.
“Cutting tool shipments are off to a solid start in 2019, bucking the trend of cooler momentum in the broader durable goods category," according to Greg Daco, chief U.S. economist at Oxford Economics. "A very solid 13 percent gain in year-to-date cutting tool shipments through February puts the category well ahead of the healthy 6 percent year-to-date rise in overall durable goods shipments. Leading manufacturing activity indicators point to healthy, but gradually cooling momentum in 2019. Slower global growth, lingering trade tensions and reduced fiscal stimulus will weigh on growth while elevated private sector confidence, a solid labor market and a more dovish Fed support activity.”
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.