June U.S. cutting tool consumption totaled $186.57 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 2.8 percent from May's $191.93 million and up 6.0 percent when compared with the total of $175.97 million reported for June 2016. With a year-to-date total of $1.095 billion, 2017 is up 5.8 percent when compared with 2016.
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.
"2017 continues to be a much stronger year for cutting tools than 2016," says Steve Stokey, president of USCTI. "High consumer confidence is a strong indicator that cutting tools sales will continue to improve through the second half of the year."
Costikyan Jarvis, president of Jarvis Cutting Tools, comments that, "Combining the recent PMI of 56.3, Capacity Utilization of 76.6 percent and July's job growth (209,000 jobs), this month's Cutting Tool Survey result supports our view of a slow, but steady, growth in the economy. While most macro level indicators are sound, there is some uncertainty how global politics (North Korea, Venezuela, etc.), the Federal rate increases, and the diminishing Federal Balance Sheet will affect economies. On a more micro level, automotive and aerospace continue their robust demand, but we would like to see more improvement in areas like housing starts, agriculture and oil. From the cutting tool producer's viewpoint, our revenue growth is being driven by the strong market segments while Caterpillar's recent improved outlook may signal growth in some of the remaining segments."
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.