In a report compiled by the U.S. Cutting Tool Institute (USCTI) and the Association For Manufacturing Technology (AMT), U.S. tooling consumption was down 5.7% in 2016. This figure is based on totals reported by companies who participated in the Cutting Tool Market Report (CTMR).
As a leading consumable in the manufacturing process, cutting tool consumption is seen as a leading indicator of overall manufacturing ups and downs. Tooling performance is identified as a strong indicator because it's a true measure of actual production levels.
What does that mean for the year ahead?
Optimistic Outlook for 2017 and 2018
Since the November election, manufacturing indices are on the rise. This will likely lead to a rise in the demand for tooling in the coming year. The manufacturing industry is anticipating improvements which are expected to be seen as early as the end of the first quarter, according to Brad Lawson of AMT's Cutting Tool Production Group.
Scott Hazelton, Managing Director of Economics and Country Risk at IHS Markit, agrees with this optimistic outlook. In CTMR's report, Mr. Hazelton states the tool industry should begin to reflect growth in the first half of 2017. He credits higher oil prices which will re-invigorate the energy sector, adding to steadily improving manufacturing fundamentals. 2018 is expected to offer even stronger performance as U.S. business investments picks up.
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