January cutting tool consumption down 16.7 percent from last year
January U.S. cutting tool consumption totaled $153.14 million, down 2.1% from December’s $156.48 million and down 16.7% compared to $183.91 million reported in January 2015.
According to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology, the totals represent the majority of the U.S. market for cutting tools.
“The declining statistics coupled with the uncertainty in the manufacturing sector leads to continued caution for the cutting tool industry,”said Brad Lawton, chairman of AMT’s Cutting Tool Product Group.
However, there are still some bright spots to look at when thinking of the future of the cutting tool market.
“Cutting tool shipments have been relatively soft since September, most likely due to a contraction in durable goods new orders,” said Steve Kline, Director of Market Intelligence at Gardner Business Media . “However, there are some signs of improvement in durable goods new orders, a key leading indicator of cutting tool shipments. New orders in the automotive and aerospace industries have been particularly strong in recent months. This corroborates anecdotal evidence from the recent MFG Meeting where I heard from a number of suppliers that the automotive, aerospace, and medical industries continue to be strong markets.”