March 2020 U.S. cutting tool consumption totaled $189.8 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 0.9 percent from February's $188.2 million and down 9.8 percent when compared with the $210.4 million reported for March 2019. With a year-to-date total of $574.5 million, 2020 is down 9 percent when compared with 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 Brad Lawton, Chairman of AMT’s Cutting Tool Product Group, “The Cutting Tool Industry has followed the 2019 trend line during the first quarter of 2020. However, it is anticipated that the second and third quarter of 2020 will show the full impact of the COVID-19 pandemic, with recovery extending into 2021.”
“Since the pandemic began, cutting tool orders continued to contract on the same trend line as prior to the pandemic. This will likely continue for a few more months. However, there are indications that capacity utilization in the metalworking industry has bottomed and begun to slowly trend up. Further, a survey we conducted showed that manufacturers’ number one priority over the next six months is to invest in their business to prepare for a surge in orders and expand their product mix, which should help cutting tool orders,” said Steve Kline Jr., Director of Market Intelligence at Gardner Business Media.
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.