Phuchit | Dreamstime
Examples of CNC cutting tools.
  1. Cutting Tools

Cutting Tool Demand Rose in January

March 26, 2023
Consumption of cutting tools by machine shops and other manufacturers started 2023 with renewed strength after two months of decline, indicating strengthening manufacturing activity.
U.S. machine shops and other manufacturers increased their purchases of cutting tools by 4.2% from December to January, totaling $196.2 million to start the year. It was the first monthly increase recorded by the monthly Cutting Tool Market Report since October 2022.
AMT/USCTI
A graph comparing the 12-month moving averages for U.S. durable goods shipments and U.S. cutting-tool orders, demonstrating the relation of cutting tools to overall manufacturing activity. The values are calculated by taking the average of the most recent 12 months and plotting them over time. The January 2023 cutting-tool consumption total of $196.2 million is up 4.2% from the December result, and 22.7% higher than the January 2022 result.
A graph comparing the 12-month moving averages for U.S. durable goods shipments and U.S. cutting-tool orders, demonstrating the relation of cutting tools to overall manufacturing activity. The values are calculated by taking the average of the most recent 12 months and plotting them over time. The January 2023 cutting-tool consumption total of $196.2 million is up 4.2% from the December result, and 22.7% higher than the January 2022 result.

According to the CTMR’s sources (AMT - the Assn. for Manufacturing Technology and the U.S. Cutting Tools Institute) the January total is 22.7% higher than the comparable figure for January 2022.

Cutting tools are consumable products, the purchases of which serve as an index to overall manufacturing activity due to the range of market segments served by machining operations and driving machine shops’ consumable purchases. The data is compiled by AMT and USCTI represents actual purchases of cutting tools as reported by manufacturers and distributors that comprise a majority of the domestic market for cutting tools.
USCTI/AMT
The month-by-month direction of U.S. cutting-tool consumption, January 2019 to January 2023
The month-by-month direction of U.S. cutting-tool consumption, January 2019 to January 2023

“The outlook remains strong for 2023; cutting tool suppliers continue to reduce back orders and increase inventory,” says Jack Burley, chairman of AMT’s Cutting Tool Product Group and Committee.

Burley continued: “Modest increases in the data can be attributed to inflation, but incoming new order activity remains at a good level. Based on the positive report from January, I expect that 2023 will meet expectations.”