June 2019 U.S. cutting tool consumption totaled $198.9 million according to the United States. 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 down 6.8 percent from May's $213.4 million and down 6.3 percent when compared with the $212.4 million reported for June 2018.
With a year-to-date total of $1.25 billion, 2019 is up 3.2 percent when compared with 2018.
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.
“With over a 6 percent drop in volume from both May’s report and June 2018 report, we are starting to see the market soften. While some of the softening is due to seasonality, the balance of the decrease reflects the European economies that have been slowing for a few months, while the U.S. economy shows signs of slowing slightly,” said Phil Kurtz, President of USCTI. “These two factors, combined with the overhanging cloud of potential trade wars, may keep pressuring the market through the end of 2019. It is important to note that YTD 2019 remains 3.2 percent higher than YTD 2018 which supports the overall market strength in the 1st half of 2019.”
According to Chris Kaiser, President and CEO of Big Kaiser Precision Tooling, “After a great start into 2019, it looks like cutting tools are on a downward trend following the lead of metal cutting machine tool orders. It’s not necessarily a surprising development, since several industry segments and markets, like oil and gas, aerospace and the automotive sector are struggling at the moment.
“This all seems congruent with developments in certain European countries too, like Germany. The trend for us seemed to improve going into July. I imagine we’ll go through some roller-coaster months going forward for the next 12 months. This development reminds us a little of the 2015/16 timeframe.”
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.