McLean, Va. – December 2021 U.S. cutting tool consumption totaled $164.3 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 2.2% from November's $160.7 million and up 9.5% when compared with the $150.1 million reported for December 2020. With a year-to-date total of nearly $2.0 billion, 2021 is up 8.3% when compared to the same time period in 2020.
These numbers and all data in this report are based on the totals reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools.
Jeff Major, president of USCTI, commented, “The cutting tool industry continues to rebound from the pandemic's impact in 2020. Projections for 2022 are positive for the industry, with expectations of a full recovery to pre-pandemic levels in 2023. With that said, we still face headwinds from inflation, supply chain disruptions, and problems with workforce hiring and retention.”
Bret Tayne, president of Everede Tool Company, also spoke on the difficulties that the cutting tool industry might face, saying, “December cutting tool sales data continue to show a moderate upward trend. Year over year and YTD sales continued to improve at a pace similar to the prior three months but at a slower pace than we experienced for April through August. It will be interesting to see how developments in January, such as the widespread increase in Omicron variant cases and Federal Reserve announcements on policy shifts, affect the next data set.”
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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