With almost unanimous positive forecasts for domestic manufacturing, 2017 was an exciting year of growth and projection for the cutting tools industry. However, if the first five months of 2018 are any indication, we are likely going to witness a year that swamps the numbers of last year. As of May 2018, the cutting tools industry reported nearly a billion dollars in consumption. In comparison to 2017 numbers through May, this represents a 10.1% increase. This growth is closely aligned with the growth projected by industry experts who still stand by their full-year models that estimate a 12.1% growth in cutting tools consumption.
Numbers by the Month
When broken down by the month, the stark year-over-year growth is truly enlightening. May of 2018 reported over $215 million in cutting tools consumption, which represented over 5% growth from April 2018 and more than 12% growth from May 2017. While the latter comparison is most impressive, the continued upward trajectory signaled by the month-over-month growth indicated a propelled future for the year in the cutting tools industry.
Tariffs and the Future
As has been witnessed across the country, the steel and aluminum tariffs imposed by President Trump are bolstering domestic investment and growth within those industries. The indirect result of this growth is undoubtedly an elevated demand within the cutting tools industry. As the effects of the tariffs continue to snowball, the exponential demand could result in a talent fallout, pushing demand to a point that threatens supply. While this is certainly a good problem to have, it also represents an opportunity for organizations to propel themselves beyond the competition.
Confidence on All Sides
From experts analyzing the economic prospects of the cutting tools industry to consumers of the manufacturing industry, there seems to be a shared optimism for the future of manufacturing. The comprehensive nature of cutting tools implies that as manufacturing demands grow, so does the need for a healthy and robust cutting tools sector. Both technical and anecdotal analysis offer the mutual suggestion that the prospect of a cutting tools boon is inevitable. This growth comes from more than projection and hope, it is based on the statistical influence of the year-over-year growth that is currently being witnessed.
At Davalyn Corporation, our extensive experience and broad expertise has afforded us our own perspective, which is the product of more than three decades of successful talent acquisition. As we see a surging need for talent across a broad range of the specific manufacturing sectors we represent, it only stands to reason that spike in the demand for cutting tools talent is just around the corner. We have the technology and the connections organizations need to respond quickly to this rise in demand, allowing our clients to stay ahead of the competition.
Related industries: Cutting Tools & Tungsten Carbide