U.S. machine shops and other manufacturers increased their purchases of cutting tools by 4.2% from December to January, totaling $196.2 million to start the year. It was the first monthly increase recorded by the monthly Cutting Tool Market Report since October 2022.
According to the CTMR’s sources (AMT - the Assn. for Manufacturing Technology and the U.S. Cutting Tools Institute) the January total is 22.7% higher than the comparable figure for January 2022.
Cutting tools are consumable products, the purchases of which serve as an index to overall manufacturing activity due to the range of market segments served by machining operations and driving machine shops’ consumable purchases. The data is compiled by AMT and USCTI represents actual purchases of cutting tools as reported by manufacturers and distributors that comprise a majority of the domestic market for cutting tools.
“The outlook remains strong for 2023; cutting tool suppliers continue to reduce back orders and increase inventory,” says Jack Burley, chairman of AMT’s Cutting Tool Product Group and Committee.
Burley continued: “Modest increases in the data can be attributed to inflation, but incoming new order activity remains at a good level. Based on the positive report from January, I expect that 2023 will meet expectations.”
