USMTO down; USCTI down from June 2020

USMTO totaled $337.5 million in July 2020, a decrease of 1.7% from June 2020 and a 13.8% decrease from July 2019

According to the latest U.S. Manufacturing Technology Orders report published by AMT – The Association For Manufacturing Technology, orders totaled $337.5 million in July 2020, a decrease of 1.7% from June 2020 and a 13.8% decrease from July 2019. Orders to date reached $2 billion, nearly a quarter lower than the total through July 2019.

© AMT | amtonline.org

“The manufacturing technology industry seems to be stabilizing, and order growth is more balanced across sectors,” says Douglas K. Woods, president of AMT. “We see this as well in YTD growth numbers, which experienced a lower rate of decline in July. A wide variety of sectors including automotive and medical equipment were positive this month, with the automotive sector being the standout. Automotive production grew from 1,700 units per month in April to 222,000 units in July. As a result, production has scaled up through the supply chain and is driving manufacturing capital demand.”

“The ISM purchasing manager’s index (PMI) has been over 50 for the past three months, inclusive of August. Capacity utilization has also had three months of steady increases with the expectation that August will see the index rise again. Combined with the narrowing of declines in MT orders, these trends signal that the bottom of the downturn may be near. We are hopeful that IMTS spark will provide an additional bump to sales activity in September and the following months, as is typically the case in an IMTS year.”

July 2020 US cutting tool orders down 8.5% from June 2020

July 2020 U.S. cutting tool consumption totaled $137.8 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was down 8.5% from June's $150.6 million and down 30.6% when compared with the $198.5 million reported for July 2019. With a year-to-date total of $1.1 billion, 2020 is down 21.2% when compared with July 2019.

© USCTI | http://www.uscti.com/

These numbers and all data in this report are based on the totals reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools.

According to Brad Lawton, chairman of AMT’s Cutting Tool Product Group, “The July data shows a slight decline as the cutting tool industry’s major customers have returned to work from the pandemic shutdown. This is likely due to customers seeking to deplete existing tool inventories and adjust to the uncertainty of domestic and global markets before placing new orders. It is clear that the climb to better sales volumes will be extended and bumpy.”