In January, U.S. cutting tool consumption totaled $196.2 million, an increase of almost 23% over the same month a year prior, according to the U.S. Cutting Tool Institute and the Association For Manufacturing Technology (AMT).

The total was up 4.2% from December’s $188.4 million and up 22.7% when compared with the $160 million reported for January 2022.

According to a news release, these numbers and all data are based on the totals reported by the companies participating in the CTMR program. The figures reflect a majority of the U.S. market for cutting tools, the news release states.

“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. “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.”

Alan Richter, editor-at-large at Cutting Tool Engineering, added, “While economic news these days seems to be focused on bank runs and inflation struggles, the cutting tool industry continues to gain steam as shown by double-digit increases in year-over-year sales. If the positive trajectory in U.S. cutting tool consumption continues, monthly order totals will be at or higher than pre-pandemic levels before the end of the year.”

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, according to the news release.