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U.S. Cutting Tool Consumption Showing Signs of Slowdown

July 16, 2019, 07:05 AM
Filed Under: Machine Tools

May 2019 U.S. cutting tool consumption totaled $213.4 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 2.9 percent from April's $207.5 million and down .8 percent when compared with the $215.1 million reported for May 2018.
With a year-to-date total of $1.1 billion, 2019 is up 5.2 percent 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 totals here represent the majority of the U.S. market for cutting tools.

“The Cutting Tool Market is now showing indications of the promised overall slowdown in the economy. The (Year to Date over Year to Date) numbers are no longer showing the double-digit growth of 2018. Summer domestic slowdowns, international trade issues and global declining economies are confirming a changing Cutting Tool Market,” said Brad Lawton, Chairman of AMT’s Cutting Tool Product Group.

According to Steve Kline Jr., Chief Data Officer at Gardner Business Media, “May’s cutting tool orders were quite strong as only eight of the last 89 months had a higher total in real dollars. However, compared with one year ago, orders have contracted for three straight months. Based on the Gardner Business Index, cutting tool orders are likely to contract for the remainder of 2019.”

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.

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