The 2020 Mid-Year Economic Update_long

U.S. Cutting Tool Consumption Drops 36% in May

Latest report shows U.S. cutting tool consumption down 4.4% from previous month of April, while year-to-date total is down 18.8% from same period of 2019.
Cutting Tool Consumption

U.S. cutting tool consumption totaled $136.6 million in May, 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 36% when compared with the $213.4 million reported for May 2019 and down 4.4% from April’s $149.9 million. With a year-to-date total of $854.1 million, 2020 is down 18.8% when compared with the first five months of 2019.

According to Brad Lawton, chairman of AMT’s Cutting Tool Product Group, “The cutting tool industry is doing its best to survive the effects of the forced pandemic recession, that is resulting in a significant decline in shipments. The questions are, when will we see recovery, in the third quarter or after the first week of November? And will we return to the sales volumes experienced in 2018 and 2019? Whatever are the answers, the facts are that the financial effects will be with the industry for an extended period.”

“The cutting tool market in May continued to shrink from April but at a much slower pace. We are now starting to see some market segments begin to stabilize and those segments should start to recover slowly in the months ahead,” said Phil Kurtz, vice president of business development of Dormer Pramet. “It is very possible April and May will represent the bottom of the cycle, but considering the volatility of the current market only time will tell.”

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