The 2020 Mid-Year Economic Update_long

U.S. Cutting Tool Consumption Down 21.8% in January

Latest report shows U.S. cutting tool consumption also down 3.2% from the previous month of December.
Cutting Tool Consumption

U.S. cutting tool consumption totaled $152.2 million in January, according to the U.S. Cutting Tool Institute (USCTI) and The Association For Manufacturing Technology (AMT).

This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was down 21.8% when compared with the $194.8 million reported for January 2020 and down 3.2% from December 2020’s $157.3 million.

According to Brad Lawton, chairman of AMT’s Cutting Tool Product Group, “January shipments levels are better than the dismal numbers in May 2020 but don’t reflect a recovery in Q1 business levels either. However, I expect a recovery to begin in our industry soon as the government stimulus translates into greater manufacturing levels early in 2021.”

Added Greg Daco, chief U.S. economist at Oxford Economics USA: “The outlook is looking brighter for cutting tools, but the road to a full recovery remains long. In January, cutting tool shipments were 22% lower than last year despite durable goods shipments being 6.2% year-over-year higher than in January 2020. Improving health conditions, expanding vaccine distribution, and generous fiscal stimulus will form a powerful cocktail that lifts economic activity this year. A softer U.S. dollar and rebounding global growth should further contribute to the sectoral tailwinds. Looking further ahead, policy risks are tilted to the upside with President Biden’s Build Back Better plan potentially adding $2 trillion in government spending on infrastructure, climate change initiatives and R&D over the next 10 years.”

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