August 2024 U.S. cutting tool consumption totaled $209.3 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 up 9.1% from July 2024, but down 4.5% from August 2023. Year-to-date shipments totaled $1.67 billion, representing a 1.5% increase from shipments made in the first eight months of 2024.

“We saw drop-offs in orders for two of the last three months of the third quarter of this year compared to last year,” USCTI President Steve Boyer said in the group’s Oct. 16 news release. “Challenges continue with work stoppages in the aerospace sector. Instability in world events is also significantly impairing market confidence as we finish out 2024. Defense spending continues to be strong, while other markets have shown some stagnation. Early expectations for continued growth in 2025 originally showed promise, but a lackluster 2025 is probably more realistic with so many factors in flux.”

“Sales of industrial metal cutting tools seems to have plateaued,” Everede Tool Company President Bret Tayne added. “We can look past some of the ‘noise’ by focusing on the 12-month moving average, and that is flat. This conclusion seems to be consistent with what we read about the broader economy. We are at an inflection point. Some macro data points to a recession, and other data indicates we may avoid it. From the perspective of our industry, it will be interesting to see if we achieve any sustainable momentum from IMTS, which took place in September.”

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.