February U.S. Cutting Tool Orders Up 9% YoY

February 2024 U.S. cutting tool consumption totaled $214.6 million, according to the latest Cutting Tool Market Report (CTMR) published by the U.S. Cutting Tool Institute (USCTI) and the Association for Manufacturing Technology (AMT).

That total was up 4.9% from January and up 9.0% year-over-year, following January’s increases of 9.1% month-to-month and 4.1% year-over-year.

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.

“After some declines in orders to end the fourth quarter of 2023, the U.S. cutting tool industry has seen rebounds in monthly orders and growth in shipments to begin the first quarter of 2024,” observed Steve Boyer, USCTI President said in AMT’s news release. “Inflation continues to add some apprehension for upcoming quarters, but the industry continues to positively show growth even if that pattern is of uneven growth.”

The CTMR 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 what they tout as the primary consumable in the manufacturing process — the cutting tool.

“In spite of some uneasiness and uncertainty in the general economy, cutting tool sales remained on an upward trend in February,” added Bret Tayne, President of Everede Tool Co. “The yield curve remains inverted, and inflation remains stubbornly high. The commercial aircraft sector is in a challenging period. Automobile manufacturers have become increasingly concerned about the direction of the EV market. Elections are approaching, and consumer sentiment is volatile. It will be interesting to see if the cutting tool industry can maintain momentum over the next several months.”

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. Click on the images for a larger version.