USCTI business outlook exclusive: Industry Trends & Analysis

The members of the U.S. Cutting Tool Institute (USCTI) predict a tough year ahead for the industry, according to a spring survey conducted by the organization.

The survey gauged member sentiment in several areas including the outlook for the U.S. economy, forecasted cutting tool industry shipments, changing employment levels, raw material costs, exporting, financing issues and workforce actions.

More than 80 percent of the survey respondents have a very grim outlook for the U.S. economy, predicting a major recession as they plan for 2009. Not surprisingly, this outlook is reflected in their near-term outlook for the cutting tool industry with more than 60 percent of the respondents forecasting a decline in industry shipments of greater than 20 percent, and more than 90 percent of them forecasting a decline of at least 10 percent.

Unfortunately, exports are not making up for lower domestic demand. Roughly half have experienced reduced exports so far in 2009, with average declines of 29 percent.