U.S. machine shops’ and other manufacturers’ consumption of cutting tools declined in September for the third consecutive month, totaling $171.09 million, down 2.3% from the August total, but nearly even (-0.1%) with the September 2015 result.
The data is drawn from the monthly Cutting Tool Market Report, compiled from totals reported by companies who represent the majority of the U.S. market for cutting tools. The U.S. Cutting Tool Institute (USCTI) and AMT – the Association for Manufacturing Technology issue the report each month as an indicator of the scope and trend of overall manufacturing activity, noting that cutting tools are the primary consumable product for manufacturing, meaning that cutting tool consumption is a reliable leading indicator of activity in that segment of the industrial economy.
Through the first nine months of this year, total U.S. cutting tool consumption stands at $1.524 billion, meaning that 2016 is 7.5% lower than it was for the January-September 2015 period.
“With the slight improvement in the year over year numbers, it could be that market anxiety is improving and the cutting tool industry can push towards focused improvements in productivity, to better serve the global markets,” commented Brad Lawton, chairman of AMT’s Cutting Tool Product Group.