McLEAN, Va. — January 2023 U.S. cutting tool consumption totaled $196.2 million, according to the U.S. Cutting Tool Institute and AMT-The Association for Manufacturing Technology.
This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was up 4.2% from December’s $188.4 million and up 22.7% when compared with the $160 million reported for January 2022.
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.
“The outlook remains strong for 2023; cutting tool suppliers continue to reduce back orders and increase inventory,” says Jack Burley, chairman of AMT’s Cutting Tool Product Group and Committee. “Modest increases in the data can be attributed to inflation, but incoming new order activity remains at a good level. Based on the positive report from January, I expect that 2023 will meet expectations.”
Alan Richter, editor-at-large at Cutting Tool Engineering, also has a positive attitude about cutting tool consumption, stating,
“While economic news these days seems to be focused on bank runs and inflation struggles, the cutting tool industry continues to gain steam as shown by double-digit increases in year-over-year sales. If the positive trajectory in U.S. cutting tool consumption continues, monthly order totals will be at or higher than pre-pandemic levels before the end of the year."
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.