July U.S. cutting tool consumption totaled $200.97 million according to the U.S. Cutting Tool Institute (USCTI) and The Association for Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was down 5.4% from June’s $212.36 million and up 17.6% when compared with the $170.95 million reported for July 2017. With a year-to-date total of $1.413 billion, 2018 is up 11.7% when compared with 2017.

“According to the Gardner Business Index, 2017 was a very strong year for the metalworking industry. But, 2018 has been even better, with the index averaging a higher level this year compared with last year. Since the GBI is a great leading indicator for cutting tool orders, it is no surprise cutting tools orders have increased 9.3 percent year over year [inflation adjusted orders]. Orders should remain strong into 2019,” said Steve Kline, Jr., chief data officer of Gardner Business Media.

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.