July U.S. cutting tool consumption totaled $146.95 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 16.2 percent from June's $175.35 million and down 17.2 percent when compared with the total of $177.51 million reported for July 2015. With a year-to-date total of $1,177.75 million, 2016 is down 9.9 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.
"The Cutting Tool industry has been waiting for the opening bell of IMTS 2016, with anticipation of many new opportunities to break the current Industry trend and we're excited that it's finally here. Will it happen or will the declining trend continue through the end of 2016?" says Brad Lawton, chairman of AMT's Cutting Tool Product Group. "We will have the answer before the start of next month."
Additionally, "Cutting tool demand took a sharp downturn in July even adjusted for seasonality. Demand has fallen for 15 months in a row with the latest weakness likely driven by the sluggish first half of 2016's economic growth and the recent surprise contraction of the ISM Purchasing Managers Index (PMI). We are also hearing of more inventory reduction to align stock levels with current weak demand that is expected to remain lower for longer," says Eli Lustgarten, senior vice president at Longbow Securities. "Expect more of the same for the remainder of 2016 with some moderation of the decline because of much easier comps starting in September."
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.