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U.S. Cutting Tool Consumption up 14.5 Percent in January

The $158 million of cutting tool consumption represents about 80 percent of the U.S. market for cutting tools.

Posted: March 12, 2014

The last four months of cutting tool consumption have been marked by volatility. While it is difficult to draw a clear conclusion from just a few years of the data that has been gathered so far, the pattern in this series suggests the cutting tool industry might see smaller swings each month later in 2014.

January U.S. cutting tool consumption totaled $158 million, according to the U.S. Cutting Tool Institute (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 up 14.5 percent from December’s total and down 10.6 percent from January 2013.

These numbers and all data in this report are based on the totals actually reported by the companies participating in the CTMR program. The totals here represent about 80 percent of the U.S. market for cutting tools.

“As the CTMR enters the second calendar year of publication, the last four months have been marked by volatility,” said Brad Lawton, the chairman of AMT’s Cutting Tool Product Group. “While it is difficult to draw a clear conclusion from just a few years of data, the pattern so far in this series suggests we might see smaller swings each month later in 2014.”

The Cutting Tool Market Report (CTMR) 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.

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.

www.amtonline.org, www.uscti.com