October 2020 U.S. cutting tool consumption totaled $167.9 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 collaboration, was up 7.6 percent from September's $156.1 million and down 22.4 percent when compared with the $216.4 million reported for October 2019. With a year-to-date total of $1.6 billion, 2020 is down 23 percent when compared with October 2019.
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.
According to Bret Tayne, President of USCTI, “Cutting tool sales for October appear to confirm that at least the bleeding has stopped. We may have taken a step backward in November as COVID cases surged and due to typical seasonality, but the overall direction is encouraging. The beginning of vaccine distribution, along with the potential for significant pent-up demand in some customer segments, bodes well for our industry as we head into 2021.”
"New orders for cutting tools rose a brisk 7.6 percent in October, and are now back to levels not seen since March 2020. This recovery is in line with rising demand from manufacturers of electrical and medical equipment, along with better performance from traditional customers in transportation equipment and basic metals,” commented Mark Killion, Director of U.S. Industries at Oxford Economics.
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.