Cutting Tool Orders Started Strong in 2019

January’s order total pushed the annual rate of growth up to 10.3 percent, which was the fourth month in the last five with annual growth faster than 10 percent. 

In January, cutting-tool orders were $208.3 million, which was the 10th time in 11 months that orders were more than $200 million. Rebounding from a relatively weak December, January orders increased 9.7 percent compared with one year ago. January’s order total pushed the annual rate of growth up to 10.3 percent, which was the fourth month in the last five with annual growth faster than 10 percent. 

However, it seems that slower growth is ahead in 2019. The one-month rate of growth was below 10 percent for the third time in four months. That alone will cause the annual rate growth to slow from its current rate. Also, the GBI: Metalworking is a good leading indicator of cutting-tool orders, and while the rate of growth in the Index has decelerated, which typically signals decelerating growth in cutting tool orders, the Index has remained at a very high level since early 2017. The consistently strong growth at metalworking facilities is a likely reason for the recent surge in cutting tool orders, but with the GBI leading cutting tool orders by seven-to-10 months, it is likely that the annual rate of growth in cutting tool orders will decelerate soon.

Reports

Top Shops

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World Machine Tool Survey

An independent annual survey that collects statistics from machine tool consuming and producing countries and compares them in real U.S. dollars.

Capital Spending Survey

An annual survey that collects statistics regarding budgeted spending on machine tools, testing equipment, software and more.

Gardner Business Index

A diffusion index measuring month-to-month changes in activity at durable goods and discrete parts manufacturing facilities.