November U.S. cutting tool consumption totaled $168.69 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 0.2 percent from October's $168.99 million and up 9.3 percent when compared with the total of $154.28 million reported for November 2015. With a year-to-date total of $1.867 billion, 2016 is down 5.7 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.
"Since the November elections, the cutting tool industry has been following the economic indicators and the growing optimism for an improving manufacturing market," Brad Lawton, chairman of AMT's Cutting Tool Product Group, said. "The current monthly shipment numbers are not showing this increase, but we are anticipating improvements certainly by the end of the first quarter. The Cutting Tool Industry is poised and ready to respond to this increased demand."
Scott Hazelton, managing director of economics and country risk at IHS Markit, adds to the positive outlook of the coming months. "Sales for the U.S. cutting tool industry should return to growth mode in the first half of 2017 as higher oil prices re-invigorate the energy sector and add to steadily improving manufacturing fundamentals. Oil price increases are expected to slow and growth in the important transportation equipment sector will also taper off," Hazelton said. "As such, 2017 growth will be temperate with stronger performance in 2018 as U.S. business investment picks up."
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.