Cutting tool sources readily admit that the industry has been in a slump for the past year or so, but are quick to add that this bodes well for the customer in terms of supply and pricing as well as advancements in technology and delivery.

"In recent years, there has been excess capacity, partly because of new manufacturers that have started up as a result of the introduction of easier to operate computer numerical control (CNC) grinders," notes Scott Andrews, VP, sales and marketing, for Cutting Edge Technologies (Bridgewater Corners, Vt.). "As such, there has been a lot of price pressure on standard tooling over the last several years." This has led to a relatively strong buyers' market, with plenty of capacity and plenty of good manufacturers available. Weakest demand area, according to Andrews, has been mold making.

Dave Baker, president of Robb-Jack Co. (Lincoln, Calif.), and president of the U.S. Cutting Tool Institute ( USCTI ), agrees: "We are one of the very fundamental parts of the economy. Right before us are machine tools. Cutting tools probably have something to do with virtually every product that is made—everything from circuit board drills to cell phones and automobiles to airplanes. As such, once machine tool sales went into the tank, cutting tool sales followed, because people weren't filling up the spindles anymore."

"It's difficult to predict when the recovery will take place in our industry," admits Andrews. "It seems that, each month, the predictions for recovery also move a month forward, and the recovery always seems to be six months ahead. I will say, though, that we appear to have flattened out in terms of the decline. The trend is no longer going down."

Baker, who has been in the industry for 27 years, sees an interesting trend: "It seems that there has always been a game of leapfrog going on between cutting tool and machine tool manufacturers," he observes. When cutting tool manufacturers make advancements in the way their tools perform, the machines can't keep up. Machine tool manufacturers then make advances that not only can keep up with the cutting tools, but can outperform them. "Then, it's up to cutting tool manufacturers to make more improvements," he adds. "The customer is constantly winning."

Baker points to significant technological advances in the cutting tool industry in recent years in terms of better cutting tools, better raw materials, and better coatings. "As a result, our customers are getting tools that cut faster, last longer, or both. We are able to get better finishes and tolerances on parts than we did even just a few years ago."

In addition, the ways the cutting tools are being used are changing. For example, ten years ago, all die steels were machined at very low surface footages (the function of RPM and diameter) and very low feed rates. "Today, it's just the opposite," reports Baker. "Hardened die steels are being machined at extremely high RPMs and extremely high feed rates that were not possible ten years ago. This has cut cycle times on some of these dies and molds to 10-20% of what they used to be."

One manufacturer offering new technologies is Cutting Edge Technologies. Examples include miniature and micro-size tooling, including some with long reaches or extended reaches for deep-pocket milling, machining of graphite electrodes, etc. "We produce end mills them down to one- and two-thousandth diameter, and we are seeing a lot of demand in specific for the five-thousandth diameter," Andrews says. Cutting Edge has also been working on new coatings, mostly diamond coatings for machining nonferrous materials.

In terms of availability, almost all manufacturers can respond as quickly as customers would like. In fact, some parts of the industry have expanded to a 'rapid delivery' strategy for customers who need very quick response times. "Some companies, " Baker explains, "don't just make cutting tools, but make cutting tools specifically for people who need them in a hurry." However, "One thing you have to take into consideration here, is that most of these manufacturers are highly specialized, or they wouldn't be able to provide rapid availability. That is, they ususally tend to make very limited ranges of products."

Baker notes also that integrated supply strategies have helped improve availability in that distributors are keeping more inventory for customers.

Baker recommends that buyers take advantage of the industry's situation by looking for value. "Products are being made to perform better and last longer," he explains, "but the costs have not seemed to increase to match the improvements. As such, if end users pay attention to the advances in technology, they can really get some great values."