U.S. cutting tool consumption totaled $142.9 million in April, 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 31.1 percent when compared with the $207.5 million reported for April 2019 and down 24.7 percent from March's $189.8 million. With a year-to-date total of $717.5 million, 2020 is down 14.4 percent when compared with the first four months of 2019.
According to Bret Tayne, president of USCTI, “The precipitous drop in April cutting tool industry sales numbers confirms what many of us have experienced. The good news is that some economic forecasts and macro market indicators point to improvement as we enter the second half of the year.”
“The latest data from April simply quantifies ‘how bad’ the news is for our industry. It also appears the bad news will continue through the months ahead. The drop in oil prices along with COVID-19’s impact on automotive, aerospace and support industries has left its trail of destruction,” said Steve Stokey, executive VP and owner of Allied Machine and Engineering. “Survival and understanding the ‘new normal’ is what is driving most decisions now-a-days. One positive tidbit to note is the resiliency of our industry. Companies have implemented changes and innovated at unprecedented speeds. The phrase ‘Innovate or Die’ has never been more relevant than it is today.”