3Q23’s uneven growth continued in October, and USCTI’s President expects that narrative to continue through 2024’s first half.
October U.S. cutting tool consumption totaled $213 million, according to the U.S. Cutting Tool Institute (USCTI) and The Association for Manufacturing Technology’s monthly Cutting Tool Market Report, released Dec. 13.
That total, as reported by companies participating in the report collaboration, was up 5.8% from September and up 6.1% from October 2022. At $2.06 billion, 2023’s year-to-date consumption total was up 7.9% compared to the first 10 months of 2022.
“U.S. cutting tool orders continued to show a trend of uneven growth over the last quarter, and we expect that narrative to continue through the first half of next year,” USCTI President Steve Boyer remarked in a news release. “Aerospace and automotive market indicators show sustained growth for 2024 and 2025. Other industrial market segments have softened over the last six months, and we anticipate some decline into the next year. Labor shortages, retention challenges and an aging workforce will challenge future growth in our markets.”
“Current U.S. cutting tool consumption data remains relatively strong despite the ongoing softness of U.S. manufacturing,” added Eli Lustgarten, President at ESL Consultants. “Cutting tools are one of the last manufacturing sectors to return to pre-COVID levels. Indications are that conditions will be uncertain for the remainder of 2023 and into 2024.”
The graph below from the USCTI and AMT 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.
Click on the charts for a hi-res version.
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Mike Hockett
Mike Hockett is MDM’s executive editor, having joined the publication in March 2022. He oversees MDM’s editorial content and direction, coordinates with contributing authors, conducts interviews with executives in the wholesale distribution space and serves as the editorial face of MDM at industry events. He has extensively covered the distribution and manufacturing sectors since 2014. Hockett earned a degree in print journalism from the University of Wisconsin-Eau Claire and works from his home in Madison, Wisconsin. He can be contacted at mike@mdm.com.
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