December U.S. cutting tool consumption totaled $175 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 5.4% from November's $185 million and up 10% when compared with the $159.17 million reported for December 2016. With a year-to-date total of $2.195 billion, 2017 is up 8.3% when compared with 2016.
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.
"After posting two years of a shrinking cutting tool market, it is great to see 2017 turned the corner and finished in the black with a solid increase over 2016," said Phil Kurtz, President of USCTI. "The economy appears to be firing on all cylinders with companies expanding, manufacturing jobs being added and overall productivity improving. These trends all look to continue into 2018.
"The last-minute new tax cuts will further bolster the growth as companies use the savings to replace old machines or buy new ones to expand capacity," Kurtz added. "We hope for continued growth through 2018."
"Because cutting tool demand is directly associated with industrial output, it is my opinion that our cutting tool data is a leading indicator of industrial activity," said Costikyan Jarvis, President of Jarvis Cutting Tools. "Early in 2015, the cutting tool data started showing year-over-year contraction, and unfortunately, the data was correct and 2015 and 2016 saw declining demand. Happily, 2017 ends with total cutting tool demand showing very strong growth.
"When you combine the cutting tool data with other December indicators (PMI of 59.3, Manufacturing Capacity Utilization at 76.4%, and Consumer Confidence at 122.1), all indicators are pointing to a strong 2018," Jarvis added.
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.
Historical data for the Cutting Tool Market Report is available dating back to January 2012.
For more information contact:
AMT
7901 Jones Branch Drive, Suite 900
McLean, VA 22102-4206
703-893-2900 / 800-524-0475
amt@amtonline.org
www.amtonline.org
USCTI
1300 Sumner Avenue
Cleveland, OH 44115-2851
216-241-7333
www.USCTI.com