Cutting tool consumption records slight decline
The U.S. Cutting Tool Institute (USCTI) and the Association For Manufacturing Technology (AMT) reported a 1% decline in November 2019 compared to the same period in 2018.
November 2019 U.S. cutting tool consumption totaled $189.1 million, according to the U.S. Cutting Tool Institute (USCTI) and the Association For Manufacturing Technology (AMT). This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was down 12.6 percent from Octobers’s $216.4 million and down 9.7% when compared with the $209.4 million reported for November 2018. With a year-to-date total of $2.3 billion, 2019 is down 1.1% when compared with 2018.
According to Brad Lawton, Chairman of AMT’s Cutting Tool Product Group, “The Cutting Tool Industry has been managing through declining sales volumes for 2019. The economic forecasts indicate that this trend will continue into 2020. However, the recent progress that has been accomplished with Trade Agreements could improve economic activity.
“The CTMR did not drop off as significantly as machine tool orders in 2019 but was on a downward trend for most of the year and remained in negative territory. We should see an upturn in December compared to the previous month as year-end budgets are expended. I’m actually surprised orders are as close to 2018 levels as they are, and that may be due to relatively high capacity utilization rates in many industries,” said Chris Kaiser, CEO of Big Kaiser.
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.