U.S. machine shops and other manufacturers purchased $193.6 million worth of cutting tool products during October, an increase of 9.7% from September and the second consecutive month of rising demand for such products. The figure also shows a 3.3% increase over October 2013’s consumption total.
The results are drawn from the latest Cutting Tool Market Report, a monthly summary compiled jointly by the U.S. Cutting Tool Institute and AMT – The Association For Manufacturing Technology. The figures is based on actual purchases by manufacturers participating in the CTMR program, who represent about 80% of the domestic market for cutting tools.
The CTMR report’s sponsors present it as an indicator of U.S. manufacturing activity, measuring as it does the actual level of production by operations that produce and consume machined parts.
The report contrasts with AMT’s monthly U.S. Manufacturing Technology Orders report, which measures the industry’s new capital investments as an indicator of business confidence. In its recent October report, the USMTO indicated a -35% decline from the previous month, with year-to-date new machine-tool orders year-to-date total for U.S. manufacturing technology orders totaling $4.15 billion, up 3.8% compared to the ten-month total for 2013.
“October 2014 has given some indication that we have turned the proverbial corner in the cutting tool industry,” stated USCTI president Tom Haag. “Sales volume has recorded the best month in over two years, going back to March 2012 and four of the last five months have outperformed 2013.
“The increased sales immediately after IMTS in Chicago have created a momentum that has continued to swell into the fourth quarter,” Haag concluded.