June 2024 U.S. cutting tool consumption totaled $208.1 million, according to the latest Cutting Tool Market Report (CTMR) published by the U.S. Cutting Tool Institute and the Association for Manufacturing Technology (AMT).

That total was down 2.9% from May 2024 and were down 4.2% from June 2023. Year-to-date shipments totaled $1.27 billion, representing a 2.6% increase compared to shipments in the first six months of 2023.

“While 2024 started on a positive note, we have seen significant stagnation in several markets utilizing cutting tools,” USCTI President Steve Boyer said in the group’s Aug. 14 report release. “Aerospace has seen many challenges this year, and while we expect to see that market improve in 2025, it has impacted growth for 2024. Modest gains have been realized with orders for the automotive markets but have not fully offset some of the slides attributable to the aerospace industry. While tempering our enthusiasm for the second half of 2024, expectations for cutting tool order growth are still very positive for 2025.”

“Cutting tool demand is likely to show further softness in the second half of 2024, driven by widespread inventory liquidation in many industries,” ESL Consultants President Eli Lustgarten added. “While there are pockets of strength in markets such as government-financed infrastructure and data centers, the farm equipment sector will show dramatically lower production in the second half of 2024. Energy, construction, and mining sector output will decline. Heightened uncertainty also exists in automotive and commercial aerospace markets.”

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.

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.