McLean, Va., (February 8, 2017) – December U.S. cutting tool consumption totaled $176.04 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 (CTMR) collaboration, was up 4.4% from November’s $168.69 million and up 12.5% when compared with the total of $156.49 million reported for December 2015. With a year-to-date total of $2.042 billion, 2016 is down 4.3% when compared with 2015.
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 cutting tool market data continues to show signs of strengthening,” says Steve Stokey, President of USCTI. “ There is a great deal of positive chatter in most manufacturing sectors that would indicate there are high expectations for 2017. This should drive higher demand for cutting tools.”
Steve Kline, Jr., Director of Market Intelligence at Gardner Business Media adds to the positive forecast by stating that “Cutting tool orders improves the last five months of 2016. In three of the last five months, cutting tool orders increased compared with year prior levels. In fact, December increased 12 percent, which was the fastest rate of growth since December 2014. Gardner’s metalworking business index leads cutting tool orders by six to 12 months. The index has been improving for some time. In January, the index showed that the metalworking industry grew for the first time in nearly two years. Therefore, I expect cutting tool orders to increase in 2017.”
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.
AMT – The Association For Manufacturing Technology represents and promotes U.S.-based manufacturing technology and its members—those who design, build, sell, and service the continuously evolving technology that lies at the heart of manufacturing. Founded in 1902 and based in Virginia, the association specializes in providing targeted business assistance, extensive global support, and business intelligence systems and analysis. AMT is the voice that communicates the importance of policies and programs that encourage research and innovation, and the development of educational initiatives to create tomorrow’s Smartforce. AMT owns and manages IMTS — The International Manufacturing Technology Show, which is the premier manufacturing technology event in North America.
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.