McLEAN, Va. — U.S. cutting tool consumption totaled $175.9 million in June 2022, according to the U.S. Cutting Tool Institute and AMT-The Association for Manufacturing Technology.
This total, reported by companies participating in the Cutting Tool Market Report collaboration, was up 0.3% from May’s $175.4 million and up 2.2% when compared with the $172.1 million reported for June 2021. With a year-to-date total of $1.1 billion, 2022 is up 7.9% when compared to the same time period in 2021.
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.
“As we approach the mid-year seasonal slowdown, June’s numbers dropped almost a half of a percentage point from May,” said USCTI President Jeff Major. “Our industry continues to endure the many economic challenges brought on by the pandemic. Manufacturing remains somewhat steady despite the concerns of a potential recession. Reports of an easing in microchip shortages will certainly help certain market segments in manufacturing, primarily automotive.”
“While shipments appear to have hit a plateau, the value of those shipments in 2022 are at the highest monthly average since 2019," said Christopher Chidzik, principal economist at AMT. "There is still some way to go before monthly orders match their pre-pandemic levels. Shortages of materials, particularly certain metals, mean there is an upper limit on the number of tools that can currently be used. Shops only need as much tooling as they have metal to work. If these challenges can be alleviated and consumer demand for manufactured goods and capital-intensive services remains strong, the second half of 2022 could see monthly order activity return to pre-pandemic levels.”
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.