Cutting tool consumption in January increases

U.S. cutting tool consumption totaled $196.5 million in January, which is up from December, but down almost 10% compared to January 2019

By Association for Manufacturing Technology (AMT) March 16, 2020

January 2020 U.S. cutting tool consumption totaled $196.5 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 collaboration, was up 5% from December’s $187.2 million and down 8.6% when compared with the $215.1 million reported for January 2019.

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.

According to Brad Lawton, chairman of AMT’s cutting tool product group, “What is uncertainty? For the cutting tool industry, it could be slowly declining sales volumes for at least the last half of 2019, all international markets declining with the U.S. being the last to follow the pattern, stock market volatility, an election year and COVID-19! Did I miss anything? Now that is uncertainty, welcome to the new decade,” he said in a press release.

Tom Haag, president of SGS Kyocera, said, “Starting the 2020 calendar year behind January 2019 is not a surprise based on last year’s strong start and the economic headwinds facing the market today. The metalworking industry is feeling the negative effects of a flat automotive market and an aerospace market that has virtually halted the entire supply chain of the 737MAX. IHS forecasts have warned of a drop in consumption in the first quarter and this has unfortunately come to fruition.”