Cutting tool consumption in the US reached $168.69 million in November 2016.
Representing a slight decline of 0.2% from October’s £168.99 million, the total was up 9.3% on November 2015. The year-to-date total hit $1.867 billion, representing a 5.7% fall compared with 2015.
The statistics were put together by the US Cutting Tools Institute (USCTI) and the Association for Manufacturing Technology (AMT). Companies contributing to the Cutting Tool Market Report, representing “the majority of the US market for cutting tools” also contributed. The numbers cover US manufacturers’ consumption of cutting tools and are thought to be an indicator of US manufacturing output.
Optimism in the market
“Since the November elections, the cutting tool industry has been following the economic indicators and the growing optimism for an improving manufacturing market,” says Brad Lawton, Chairman of AMT’s Cutting Tool Product Group. “The current monthly shipment numbers are not showing this increase, but we are anticipating improvements certainly by the end of the first quarter. The Cutting Tool Industry is poised and ready to respond to this increased demand.”
Scott Hazelton, Managing Director of Economics & Country Risk at IHS Markit, adds to the positive outlook of the coming months. “Sales for the US cutting tool industry should return to growth mode in the first half of 2017 as higher oil prices re-invigorate the energy sector and add to steadily improving manufacturing fundamentals.
“Oil price increases are expected to slow and growth in the important transportation equipment sector will also taper off,” says Scott. “As such, 2017 growth will be temperate with stronger performance in 2018 as U.S. business investment picks up.”