September 2022 U.S. cutting tool consumption totaled $172.1 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 down 3.3 percent from August’s $178.1 million and up 5.5 percent when compared with the $163.1 million reported for September 2021. With a year-to-date total of $1.6 billion, 2022 is up 7.6 percent when compared to the same time period in 2021.
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.
“As we review September’s data and the YTD performance of the cutting tool industry, two questions come to mind,” said Brad Lawton, Chairman of the AMT Cutting Tool Product Group. “How much of the YTD dollar volume increase is due to inflation, and is the September decline the start of the forecasted recession? As the industry struggles to answer these questions and other business demands, the next few months will provide answers.”
Bret Tayne, President of Everede Tool Company, spoke about inflation and interest rates. “The decline in cutting tools sales from August to September continues a trend we have seen over the past six months as the Federal Reserve raises interest rates in response to the surge in inflation.” Tayne continued and spoke more specifically about the cutting tool industry by stating, “Although September sales for the industry improved over September 2021, the trend for improvement year over year has been moderating as well. On a more positive note, raw material costs appear to be more stable in recent months, which should translate into lower inflation and a slower curve in interest rate increases.”
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.