U.S. Cutting Tool Consumption Up 6.1% in January

The U.S. Cutting Tool Institute and the Association For Manufacturing Technology reported a 4.9% increase in January U.S. cutting tool consumption on a month-over-month basis. The total consumption ($183.61 million), was up 6.1% compared to the $173.05 million reported in January 2017. That also means that 2018’s year-to-date total of $183.61 million was up 6.1% when compared with 2017.

“The boom in domestic and global manufacturing has continued to show positive growth for the cutting tool industry. This is causing increasing pressure on cutting tool capacity and raw material sourcing, but these are good problems and are welcomed by the industry,” said Brad Lawton, chairman of the AMT’s Cutting Tool Product Group.

“Demand for cutting tools in January 2018 continued to demonstrate the ongoing improvement in manufacturing activity that continued throughout 2017. Sales increased 4.9% month over month in January and rose 6.1% over the same period a year ago, supporting our belief that the industrial sector will continue to strengthen as the year progresses,” said Eli Lustgarten, president at ESL Consultants. “The U.S. February ISM Manufacturing Index rose to 60.8 compared to 59.1 in January and 59.3 in December 2017. This was the best level since 2004 and the third highest since 1985. New orders and production remain at very strong levels, building a backlog and pointing toward rising industrial production and higher capacity utilization as the year progresses. With an improving global backdrop, the cutting tool sector is headed toward another banner year with sales gain approaching if not exceeding 10%.”

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