May 2020 U.S. Cutting Tool Orders Down 4.4% from April 2020

May 2020 U.S. cutting tool consumption totaled $136.6 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology.
by Patrick McGibbon
Jul 17, 2020

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May 2020 U.S. cutting tool consumption totaled $136.6 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 4.4 percent from April's $142.9 million and down 36 percent when compared with the $213.4 million reported for May 2019. With a year-to-date total of $854.1 million, 2020 is down 18.8 percent when compared with May 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 is doing its best to survive the effects of the forced pandemic recession, that is resulting in a significant decline in shipments.” Lawton added, “The questions are, when will we see recovery, in the third quarter or after the first week of November? And will we return to the sales volumes experienced in 2018 and 2019?  Whatever the answers, the facts are that the financial effects will be with the industry for an extended period.” “The cutting tool market in May continued to shrink from April but at a much slower pace. We are now starting to see some market segments begin to stabilize and those segments should start to recover slowly in the months ahead,” commented Phil Kurtz, Vice President of Business Development of Dormer Pramet. He then stated, “It is very possible April and May will represent the bottom of the cycle, but considering the volatility of the current market only time will tell.” 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. This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology. The graph below includes the 12-month moving average for the durable goods shipments and cutting tool orders. These values are calculated by taking the average of the most recent 12 months and plotting them over time.

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AMT – The Association For Manufacturing Technology represents and promotes U.S.-based manufacturing technology and its members—those who design, build, sell, and service the continuously evolving technology that lies at the heart of manufacturing. Founded in 1902 and based in Virginia, the association specializes in providing targeted business assistance, extensive global support, and business intelligence systems and analysis. AMT is the voice that communicates the importance of policies and programs that encourage research and innovation, and the development of educational initiatives to create tomorrow’s Smartforce. AMT owns and manages IMTS — The International Manufacturing Technology Show, which is the premier manufacturing technology event in North America. The United States Cutting Tool Institute (USCTI) was formed in 1988 and resulted from a merger of the two national associations representing the cutting tool manufacturing industry. USCTI works to represent, promote, and expand the U.S. cutting tool industry and to promote the benefits of buying American-made cutting tools manufactured by its members. The Institute recently expanded its by-laws to include any North American manufacturer and/or remanufacturer of cutting tools, as well as post-fabrication tool surface treatment providers. Members, which number over 80, belong to seven product divisions: Carbide Tooling, Drill & Reamer, Milling Cutter, PCD & PCBN, Tap & Die, Tool Holder and All Other Tooling. A wide range of activities includes a comprehensive statistics program, human resources surveys and forums, development of product specifications and standards, and semi-annual meetings to share ideas and receive information on key industry trends. 

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Author
Patrick McGibbon
Chief Knowledge Officer
Patrick McGibbon was promoted to Chief Knowledge Officer for AMT in early 2019. As CKO, Pat is the association’s chief economist, ombudsman, and a mem ...
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