- Monthly decline is 3.0%
- YTD drop is 6.7%
- Look to power-gen, aerospace for growth
Durable goods shipments have taken a wavering course through 2012, but the trend in cutting tool shipments has been mostly declining during the second and third quarters.
U.S. machine shops and other manufacturers ordered $156 million worth of new cutting tools during September, a decline of 3.8% from the (revised) total for August. Compared to the September 2012 shipments, the current figure is off by 3.0%
The new monthly results bring the nine-month total for cutting tool shipments to $1.5 billion, a 6.7% decline versus the January-September 2012 period.
The monthly Cutting Tool Market Report is produced by the U.S. Cutting Tool Institute and AMT – the Association for Manufacturing Technology. The two groups initiated data series in June, aiming to document sals of cutting tools and related products and technology, which they characterize as “the primary consumable in the manufacturing process.” Data in the report is based on actual values reported by participating companies, who represent about 80% of the U.S. market for cutting tools.
The USCTI represents cutting tool manufacturers and distributors, as well as post-fabrication tool surface treatment providers. AMT is the primary trade association for machining operations and manufacturers and distributors of machine tools and related technology.
“Year-to-date cutting tool shipments remain down compared to 2012, in part thanks to sluggish order growth in sectors like fabricated metal products,” stated Brad Lawton, chairman of AMT’s Cutting Tool Product Group.
Lawton said 2014 would see stronger demand for cutting tools in the power-generation equipment and aircraft and parts manufacturing sectors, noting both industries are forecast to expand their production activity in the coming year.