ILMA Compoundings September 2017 - 31
A bump in cutting tool sales bodes well for the lubricant industry
By Lin Grensing-Pophal
"As the economy and
construction - particularly
big construction - pick
up, so does the demand
consider the ideal oil price, according
to CNBC. It's enough money to turn
a solid profit while still low enough
to keep too many new entrants from
joining the market.
The heavy equipment industry also
saw a decline, even with market leaders
such as Caterpillar facing reduction
in demand. Stokey pointed to some
areas seeing a positive trend, though:
aerospace, automotive and firearms.
That, coupled with some other shifts
in the market, might portend some
good news moving forward.
According to a July 12, 2017, release
from Cutting Tool Market Report
(CTMR), U.S. cutting tool consumption hit almost $192 million in
May, based on reports from the U.S.
Cutting Tool Institute (USCTI) and
the Association for Manufacturing
Technology (AMT), representing an
increase of more than 14 percent compared with April - and more than 15
percent compared with May 2016.
"With a year-to-date total of $908.04
million, 2017 is up 5.8 percent when
compared with 2016," the release said.
The industry is showing strong signs
of a turnaround, with industry players
feeling growing optimism about the
potential for manufacturing, which is
good news for cutting tools. What's
driving the turnaround?
"People are very upbeat about the prospects for manufacturing, and that is good
news for cutting tools," Stokey said in a
May 2 news release from USCTI. Stokey
said he hears that optimism when talking
to people in the supply chain. He cites
the following economic factors to support
the turnaround in his industry: