U.S. cutting tool consumption reached its highest total in three years in October, according to the U.S. Cutting Tool Institute (USCTI) and the Association for Manufacturing Technology (AMT).
Their latest collaborative monthly Cutting Tool Market Report showed that October consumption totaled $200.6 million, up 3.4% from September and up 11.7% year-over-year. It’s the highest monthly total since October 2019, according to the report. Year-to-date consumption through October was $1.8 billion, up 9.4% compared to the first 10 months of 2021.
“Market conditions for the cutting tool industry remain positive,” USCTI President Jeff Major said. “Overall year-to-date sales versus 2021 are up 9.4%. Cutting tool sales for 2023 are expected to remain positive, led by the automotive and aerospace market segments. Shipping costs have stabilized somewhat, which helps our overall business, while there still remains some uncertainty with raw material costs.”
“Cutting tool orders continue to climb even through rocky waters,” Allied Machine and Engineering owner Steve Stokey said. “Certainly, we are all bracing for the impact of the interest rate increases by the Federal Reserve. The real key for our industry will be how durable goods perform in the months ahead. If durable goods production continues to grow, our industry may be able to stay in positive territory through an overall slowing economy.”