Shipments of cutting tools totaled $212.5 million in October 2024, according to the Cutting Tool Market Report by AMT and USCTI. This marks a 12.6% increase from September but a slight 0.2% decline compared to October 2023. Year-to-date shipments reached $2.07 billion, up 0.6% from the same period in 2023. However, monthly growth rates have consistently declined since April.
Despite the uptick in October, challenges persist, according to industry leaders.
“Orders for cutting tools in the United States have slowed significantly as we approach the final months of 2024,” said Steve Boyer, president of USCTI. He attributed the downturn to political uncertainty, work stoppages at major cutting tool users, and high interest rates. However, Boyer remains optimistic about 2025, citing planned large-scale projects and signs of modest interest rate decreases.
Steve Stokey, executive vice president and owner of Allied Machine and Engineering, said, "The data indicates what most of us realize, and that is the economy continues to be soft. The economic forecasts show we are at the bottom of the curve, and better times are ahead. The upturn cannot come soon enough."
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 the primary consumable in the manufacturing process — the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is considered a true measure of actual production levels.
