January 2024 U.S. cutting tool consumption totaled $204.5 million, according to the U.S. 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 up 9.1% from December’s $187.5 million and up 4.1% when compared with the $196.5 million reported for January 2023.
“January cutting tool shipments are a good start to 2024 and indicate that the expected decline will not be as severe as some fourth-quarter predictions that were based on the contraction in durable goods spending,” asserted Jack Burley, chairman of AMT’s Cutting Tool Product Group. “Job shops are reporting business activity, and quoting has slowed down some; however, large original equipment manufacturers in automotive, truck, and aerospace are still investing in new production lines. Overall, there is optimism within the industry for continued growth this year.”
Tom Haag, president at Kyocera SGS Precision Tool, elaborated further, stating: “January activity started quite slow after the holidays but appeared to recover as the month progressed and carried into February. We are hopeful that the inventory depletions at the close of 2023 are now being replenished to prepare for a solid manufacturing year in 2024. Commercial aerospace has a 10-year backlog to address, and if automotive manufacturing can sort out whether to produce electric vehicles or internal combustion engines, 2024 could prove to be a strong year in metalworking. With 2023 being an exception, we expect the first three months of 2024 to set the tone for the year, barring any geopolitical interruptions.”
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.
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.
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