Cutting tool consumption up 4.3 percent in August
August U.S. cutting tool consumption totaled $175.21 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 19.2% from July’s $146.95 million and up 4.3% when compared with the total of $167.91 million reported for August 2015. With a year-to-date total of $1.352 billion, 2016 is down 8.3% when compared with 2015.
“The Cutting Tool Industry welcomed a 19.2% bounce back from a very weak July. Although this is good news, questions still loom over the strength of the overall economy moving forward,” says Steve Stokey, president of USCTI. “The third largest attendance ever at IMTS 2016 combined with a record number of exhibitors certainly is a sign that the industry is optimistic that there are better times ahead.”
Following the newly announced quarterly forecasting report and webinar available only to AMT and USCTI member participants, Scott Hazelton, managing director, Economics & Country Risk at IHS Markit, adds, “Revenues will improve for the U.S. Cutting Tool industry in 2017 with growth approaching double digits for the year as a whole. The remainder of 2016 will continue to be challenging with headwinds from weak oil prices, an inventory cycle and the high dollar. However, next year will feature steadily stronger conditions for several key industries that demand cutting tools, particularly in energy, chemicals and technology, and because cutting tools are consumed with industrial production, they can recover more quickly than investment goods. Demand for cutting tools will easily outpace growth in the overall economy as well as equipment spending in 2017 and 2018.”