U.S. Cutting Tool Orders Rose 1.1% in April - Modern Distribution Management

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U.S. Cutting Tool Orders Rose 1.1% in April

Orders through the first months of the year were up nearly 5% over 2023.
U.S. cutting tool consumption

April 2024 U.S. cutting tool consumption totaled $214.7 million, according to the latest Cutting Tool Market Report (CTMR) published by the U.S. Cutting Tool Institute (USCTI) and the Association for Manufacturing Technology (AMT).

That total was up 1.1% from March and jumped 13% year-over-year, rebounding from -1.1% and 5.8% in March, respectively.

Year-to-date, cutting tool orders of $846.1 million through the first four months of the year were up nearly 5% over the same period in 2023.

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.

“While April 2024 shipping numbers do show an increase from those of 2023, caution continues due to many uncertainties ahead for the remainder of 2024,” said Steve Boyer, President of USCTI. “Uneven growth and turbulence have continued to impact cutting tool orders through the first quarter of 2024, and there have been some downgrades in expected needs from the aerospace sector, leading to stagnation in new orders.”

“The industrial sector of the economy continues to move sideways,” Jarvis Cutting Tools President Costikyan Jarvis added in the monthly AMT report. “While the value of cutting tool shipments is up about 5% over last year, the flatter growth rate in units shows that inflationary pressures are still present.”

The CTMR 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 what they tout as the primary consumable in the manufacturing process — the cutting tool.

“There are two big ‘ifs’ that could result in improved demand during the second half of the year,” Jarvis added. “The first is that the overall production remains consistent. The second is if Boeing can start ramping up production of the 737 to the FAA limit of 38 per month. If those two things can happen, the cutting tool industry might be positioned for growth in both revenue and volumes.”

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. Click on the images for a larger version.

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