The U.S. Cutting Tool Institute (USCTI) and Association for Manufacturing Technology (AMT) reported their monthly figures for cutting tool consumption on Aug. 12, showing an increase month-to-month, year-over-year and on a year-to-date basis through the first half of 2022.
The latest figures showed that June 2022 U.S. cutting tool consumption totaled $175.9 million, up 0.3% from May and up 2.2% year-over-year. Through the first six months of 2022, a consumption total of $1.1 billion was up 7.9% compared to the first half of 2021.
“As we approach the mid-year seasonal slowdown, June’s numbers dropped almost a half of a percentage point from May,” commented Jeff Major, president of USCTI. “Our industry continues to endure the many economic challenges brought on by the pandemic. Manufacturing remains somewhat steady despite the concerns of a potential recession. Reports of an easing in microchip shortages will certainly help certain market segments in manufacturing, primarily automotive.”
“While shipments appear to have hit a plateau, the value of those shipments in 2022 are at the highest monthly average since 2019,” added Christopher Chidzik, AMT principal economist. “There is still some way to go before monthly orders match their pre-pandemic levels. Shortages of materials, particularly certain metals, mean there is an upper limit on the number of tools that can currently be used. Shops only need as much tooling as they have metal to work. If these challenges can be alleviated and consumer demand for manufactured goods and capital-intensive services remains strong, the second half of 2022 could see monthly order activity return to pre-pandemic levels.”
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.
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.