November cutting tool orders drop 13.8%
Shipments of cutting tools totaled $183.1 million in November 2024, a 13.8% decrease from October and 9.7% down from November 2023, according to the latest Cutting Tool Market Report compiled in a collaboration between AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI).
Year-to-date shipments totaled $2.25 billion, down 0.3% from shipments made between January and November of 2023. The year-to-date growth rate has declined every month since April 2024.
“Uncertainty due to the election and now potential changes to policy have kept new projects and orders for manufactured products on hold, resulting in stagnant cutting tool consumption,” explained Jack Burley, chairman of AMT’s Cutting Tool Product Group. “Despite lower new orders for durable goods, the outlook remains optimistic for a return to more activity across all sectors. Aerospace was the most significant cause for the reduction in manufacturing activity, and many machine shops and tier 1 suppliers continue to wait for U.S. commercial aircraft orders to get back on track.”
Costikyan Jarvis, president of Jarvis Cutting Tools, added: “Recent cutting tool consumption data reveals complex dynamics in the manufacturing sector as 2024 ended, providing crucial insights into potential 2025 trends. The final quarter of 2024 showed notable volatility, with October posting strong numbers followed by a significant decline in November. This pattern suggests ongoing adjustments in manufacturing production schedules and investment decisions.
"Overall consumption levels remain historically robust, with monthly figures consistently exceeding $180 million. With the PMI improving, Boeing going back to work, and the overall reshoring of manufacturing, 2025 looks to be a much stronger year.”
INDUSTRIAL SUPPLY MAGAZINE
The November/December issue of Industrial Supply magazine features an in-depth cover story about Kimball Midwest. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and Mike Marks, as well as interviews with numerous product and distribution industry experts.
