Latest Data Shows Cutting Tool Consumption Waning

Sept. 10, 2015
Manufacturers’ demand down 5.9% from June to July, down 5.6% year/year $177.5 million in July Fifth monthly decline in 2015 "Caution is the condition of the month …"
“Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity,” according to CMTR sponsors, comparable to the montly purchasing managers’ index of durable goods.

Consumption of cutting tools by U.S. manufacters and machine shops fell to $177.5 million in July, down 5.9% from $188.7 million reported for June, and down 5.6% from the July 2014 total. The result is drawn from the monthly Cutting Tool Market Report (CTMR) compiled by the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology.

Cutting tool consumption is offered as an index to overall manufacturing activity, comparable the monthly purchasing managers’ index of durable goods.

The report presents figures for consumption based on actual totals reported by companies participating in the CTMR program, who represent the majority of the U.S. market for cutting tools.

“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,” according to the report’s sponsors.

The current monthly decline represents the fifth month (out of seven) this year of falling consumption. The more indicative trend is the falling year-over-year consumption total, which reflects broader U.S. manufacturing trends.

“Caution is the condition of the month as we note the flat to declining cutting tool market performance,” according to Brad Lawton, chairman of AMT’s Cutting Tool Product Group. “Changing currency values coupled with low oil prices support these conditions, with an outlook for improvements in the fourth quarter.”  

About the Author

Robert Brooks | Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries. His work has covered a wide range of topics, including process technology, resource development, material selection, product design, workforce development, and industrial market strategies, among others. Currently, he specializes in subjects related to metal component and product design, development, and manufacturing — including castings, forgings, machined parts, and fabrications.

Brooks is a graduate of Kenyon College (B.A. English, Political Science) and Emory University (M.A. English.)

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