Machinery and Equipment

Cutting tool consumption remains steady in 2019

Cutting tool consumption is up 7% through the first months of 2019 compared to the prior year, but that strength may be tempered by a bumpy market up ahead.
By Chris Vavra June 17, 2019
The graph includes the 12-month moving average for the durable goods shipments and cutting tool orders. These values are calculated by taking the average of the most recent 12 months and plotting. Courtesy: AMT, USCTI

U.S. cutting tool consumption totaled $206.3 million in April, according to the U.S. Cutting Tool Institute (USCTI) and The Association For Manufacturing Technology (AMT). This total was down 1.9% from March’s $210.4 million. However, it was up 1.3% when compared with the $203.7 million reported for April 2018.

2019, with a YTD total of $837.4 million, is up 6.7% when compared with 2018. These numbers and all data in this report are based on the totals reported by the companies participating in the CTMR program. The market, while strong, may be facing potential headwinds for the rest of 2019.

“April’s report continues to reflect a very robust market. However, the growth rate appears to be slowing. This is in line with what other industries are reporting. The effect of reduced Boeing 737 production rates and unsettled trade agreements are causing some of the market headwinds. If those issues are resolved in the next couple of months, 2019 could end as another record year,” said Phil Kurtz, president of USCTI in a press release.

Mark Killion, director of U.S. Industries at Oxford Economics, added, “New orders fell back in April, although remaining above year-ago levels, in line with slowing business investment and weakness in the motor vehicles sector.”

Chris Vavra, production editor, CFE Media, cvavra@cfemedia.com.


Chris Vavra
Author Bio: Chris Vavra is an associate editor for Control Engineering and has worked for the magazine since 2011. He edits articles on all automation topics and has written on topics including robotics, power generation, IIoT, AI/machine learning, and more. He has a Bachelor of Arts in English Literature degree from North Central College and is also a self-published crime/mystery novelist on Amazon.