U.S. Cutting Tool Consumption Grew 8.3% in 2017

December U.S. cutting tool consumption totaled $175.00 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 November’s $185.00 million and up 10.0% when compared with the $159.17 million reported for December 2016. With a year-to-date total of $2.195 billion, 2017 was up 8.3% when compared with 2016.

“After posting two years of a shrinking cutting tool market, it is great to see 2017 turned the corner and finished in the black with a solid increase over 2016. The economy appears to be firing on all cylinders with companies expanding, manufacturing jobs being added and overall productivity improving,” said Phil Kurtz, president of USCTI. “These trends all look to continue into 2018. The last-minute new tax cuts will further bolster the growth as companies use the savings to replace old machines or buy new ones to expand capacity. We hope for continued growth through 2018.”

“Because cutting tool demand is directly associated with industrial output, it is my opinion that our cutting tool data is a leading indicator of industrial activity,” said Costikyan Jarvis, president of Jarvis Cutting Tools. “Early in 2015, the cutting tool data started showing year-over-year contraction, and unfortunately, the data was correct and 2015 and 2016 saw declining demand. Happily, 2017 ends with total cutting tool demand showing very strong growth. When you combine the cutting tool data with other December indicators (PMI of 59.3, Manufacturing Capacity Utilization at 76.4% and Consumer Confidence at 122.1), all indicators are pointing to a strong 2018.”

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