May U.S. cutting tool consumption totaled $165.68 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 (CTMR) collaboration, was down 4.6 percent from April's $173.64 million and down 4.1 percent when compared with the total of $172.81 million reported for May 2015. With a year-to-date total of $855.45 million, 2016 was down 9.1 percent when compared with 2015.
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.
Brad Lawton, chairman of AMT's Cutting Tool Product Group, said, "The cutting tool industry continues to show negative results for month-to-month and year-to-date sales performance, which reflects the anxiety in the nation's manufacturing industry. This condition will more than likely continue through the end of 2016."
"While cutting tool orders contracted for the 13th month in a row, the rate of contraction has slowed down in recent months," said Steve Kline, director of market intelligence at Gardner Business Media. "In fact, the annual rate of change appears to have peaked and should contract at a slower rate in upcoming months. The trend of decelerating contraction is likely to continue as interest rates remain low and durable goods new orders have grown in recent months."
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.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.