January US cutting tool consumption totaled $183.61 million, according to the US 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 up 4.9% from December’s $175.00 million and up 6.1% when compared with the $173.05 million reported for January 2017. With a year-to-date total of $183.61 million, 2018 is up 6.1% when compared with 2017.
“The boom in domestic and global manufacturing has continued to show positive growth for the cutting tool industry,” said Brad Lawton, chairman of AMT’s Cutting Tool Product Group. “This is causing increasing pressure on cutting tool capacity and raw material sourcing, but these are good problems and are welcomed by the industry.”
Eli Lustgarten, president at ESL Consultants, said, “Demand for cutting tools in January 2018 continued to demonstrate the ongoing improvement in manufacturing activity that continued throughout 2017. Sales increased 4.9% month over month in January and rose 6.1% over the same period a year ago, supporting our belief that the industrial sector will continue to strengthen as the year progresses. The US February ISM Manufacturing Index rose to 60.8 compared to 59.1 in January and 59.3 in December 2017. This was the best level since 2004 and the third highest since 1985. New orders and production remain at very strong levels, building a backlog and pointing toward rising industrial production and higher capacity utilization as the year progresses. With an improving global backdrop, the cutting tool sector is headed toward another banner year with sales gain approaching if not exceeding 10%.”
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 US 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.