According to the U.S. Cutting Tool Institute (USCTI) and the Association for Manufacturing Technology, cutting tool consumption totaled $196.9 million in February. This total, as reported by companies participating in the cutting tool market report collaboration, was up 0.2% from January’s $196.5 million and up 17.5% when compared with the $167.6 million reported for February 2022. With a year-to-date total of $393.4 million, cutting tool consumption in 2023 is up 20.1% when compared to the same period in 2022.

“At this point, cutting tool sales for 2023 are up over the same time period last year,” Jeff Major, president of the USCTI, said. “Business concerns still exist regarding inflation, the banking industry and a potential recession near the end of the year.”

“Cutting tool manufacturers should remain cautious for the rest of the year. While business activity should hold, the economic data clearly points to a market peak,” Eli Lustgarten, president at ESL Consultants, said. “The ISM index of manufacturing of 46.2 in March 2023 is well into contraction territory for the fifth consecutive month and at the lowest level since May 2020. Further, the business survey committee of ISM has reported softening new orders for the past 10 months. While we still expect cutting tool activity to finally surpass pre-COVID levels this year, producers need to remain aware of the ongoing reduction in machinery backlog and buildup of inventory.”