Cutting Tool Industry Needs New Technologies to Revive Growth
ld cutting tool market reached $18.3 billion in 1999.
An increase in tool life, the trend toward buying the entire manufacturing process, and the rise in multi-functional tools have restrained growth of machine tool cutting tool markets, according to recent market research by Frost & Sullivan (San Antonio, TX). Participants will have to rethink their strategies to restart revenues, says F&S analyst Rakesh Suri.
Revenues for the total market reached $18.3 billion in 1999 with continued growth expected through 2006.
"Market winners will create technology trends, apply new technologies to manufacturing practices quickly, and provide solution-oriented services to end users," says Suri. A significant market challenge for manufacturers of these cutting tools is to provide end users with the right machine tool cutting tool at the right price given its machining capabilities.
With nearly 25,000 different types of tools in the market, each made of a specific material for a definite application, Suri believes that cutting tool suppliers will need to help customers choose the appropriate products for their needs. Since customers have already faced the large acquisition costs of machine tools, they are demanding machine tool cutting tools with longer life spans at lower prices.
"The industry is being challenged by environmental agencies to make the metal cutting production process more friendly to the environment," observes Suri. Mists from the interaction of metal on metal and the effects of hazardous coolants and metal residues in the air, land, and water have led national agencies to crack down on the metal machining industry.
To bypass stringent environmental regulations, major manufacturers of metal cutting tools are shifting to metals that do not require any coolants while cutting. This process of "dry machining" should help companies overcome the environmental hurdle, Suri points out.
This Frost & Sullivan report analyzes the world markets for metal cutting tools, metal forming tools, and metal finishing tools. Each chapter includes detailed discussions of end-user, product, and geographic segmentation .
Industry analysts have evaluated drivers and restraints and presented expert forecasts for each market. Frost & Sullivan presents 2000 Market Engineering Awards to companies that have worked hard to make a positive contribution to the field of industrial automation.
• The 2000 Market Engineering Competitive Strategy Award winner is Kennametal, Inc..
• The 2000 Market Engineering Leadership Award winner is Sandvik Coromant.
Frost & Sullivan is an international marketing consulting and training company that monitors the industrial automation field for market trends, market measurements and strategies. The World Machine Tool Cutting Tool Markets report is available for $3450.