U.S. Cutting Tool Orders Down in May

May U.S. cutting tool consumption totaled $165.68 million according to the U.S. Cutting Tool Institute (USCTI; Cleveland, OH) and AMT – The Association For Manufacturing Technology (McLean, VA). This total, as reported by companies participating in the Cutting Tool Market Report (CTMR) collaboration, was down 4.6 percent from April’s $173.64 million and down 4.1 percent when compared with the total of $172.81 million reported for May 2015.  With a year-to-date total of $855.45 million, 2016 is down 9.1 percent thus far when compared with 2015.

The totals here represent the majority of the U.S. market for cutting tools. “The cutting tool industry continues to show negative results for month-to-month and year-to-date sales performance, which reflects the anxiety in the nation’s manufacturing industry,” noted Brad Lawton, the chairman of AMT’s Cutting Tool Product Group. “This condition will more than likely continue through the end of 2016.”

“While cutting tool orders contracted for the 13th month in a row, the rate of contraction has slowed down in recent months,” added Steve Kline, the director of market intelligence at Gardner Business Media. “In fact, the annual rate of change appears to have peaked and should contract at a slower rate in upcoming months. The trend of decelerating contraction is likely to continue as interest rates remain low and durable goods new orders have grown in recent months.”

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.

AMT represents U.S.-based builders and distributors of advanced machinery, devices, and digital equipment that U.S. manufacturing relies on to be productive, innovative, and competitive. AMT also produces IMTS – The International Manufacturing Technology Show, the premier manufacturing technology event in North America.

USCTI was formed in 1988 and resulted from a merger of two national associations representing the cutting tool manufacturing industry. Membership includes North American manufacturers and/or remanufacturers of cutting tools.

www.amtonline.org, www.uscti.com