Despite high inflation and interest rates, there is still a positive mood for most companies who are working in US manufacturing, according to AMT, which bodes well for 2024. PHOTO courtesy EMUGE-FRANKEN.
November 2023 US cutting tool consumption totaled $202.7 million, according to the US Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology.
This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was down 4.9% from October’s $213 million and up 4.4% when compared with the $194.1 million reported for November 2022. With a year-to-date total of $2.26 billion, 2023 is up 7.5% when compared to the same time period in 2022.
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.
“Aerospace and automotive markets are still working on an impressive backlog and sales that will continue to keep most shops busy well into the new year,” declared Jack Burley, chairman of AMT’s Cutting Tool Product Group. “Despite high inflation and interest rates, there is still a positive mood for most companies who are working in manufacturing. This should be good news for 2024 forecasts within our industry.”
Despite predictions of a recession in 2023, the US economy has glided into what appears to be a soft landing, said Christopher Chidzik, principal economist at AMT.
”To support this steady economic activity, cutting tool shipments have been on a reliably upward trend since they hit bottom in mid-2020. Cutting tool demand in 2024 should continue as long as consumer demand for durable goods remains elevated, businesses continue to invest in capital equipment, and government investment in infrastructure and manufacturing continue to come online.”
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. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process – the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.
Historical data for the Cutting Tool Market Report is available dating back to January 2012. This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology.