SIC 3545 Cutting Tools, Machine Tool Accessories, and Machinist's Precision Measuring Devices
SIC 3545
This category covers establishments primarily engaged in manufacturing cutting tools, machinists' precision measuring tools, and attachments and accessories for machine tools and for other metalworking machinery, not elsewhere classified. Establishments primarily engaged in manufacturing hand tools, except power-driven types, are classified in the cutlery, hand tools, and general hardware industries.
333515
Cutting Tool and Machine Tool Accessory Manufacturing
332212
Hand and Edge Tool Manufacturing
333991
Power-Driven Hand Tool Manufacturing
In the late 1990s, a total of 2,096 establishments operated in the industry. In 2000, hand and edge tool manufacturers shipped $7.6 billion worth of goods in 2000, while cutting tool and machine tool accessory manufacturers shipped $5.6 billion worth of goods.
The cutting tools, machine tool accessories, and precision measuring devices industry is facing transition. Increased global competition in all aspects of manufacturing has created demand for better, longer lasting tools and accessories. Extensive development of tougher cutting tool materials and coatings has been the driving force of change in this industry, along with improved cutting tool design that lends extended performance. Increased emphasis on quality control is affecting the measuring device segment through demand for electronic gauges that link to statistical process control software packages. Modular tooling designs have affected the accessories segment.
Ironically, while this industry has paced itself to match industry demand for productivity improvements, it also has met with its own problems. The influx of foreign competitors to this market has been staggering, forcing cutting tool and measuring device manufacturers to look introspectively at their own operations. Process improvements and increased development became commonplace practices to remain profitable.
A downturn in the machine tool industry does not necessarily correlate to the health of the cutting tool industry. Generally, cutting tool sales are viewed as an economic indicator of the nation's manufacturing productivity level. The difference primarily is capital expense. A corporation may decide to purchase a used machine tool over a new one in recessionary times. However, if a company is cutting metal, the cutting tools wear or break and must be sharpened or replaced with new cutting tools. Therefore, the productivity of a metal cutting company generally is directly related to the purchasing levels of machine tools. However, longer lasting cutting tools are being manufactured with specialized coatings that extend the wear life of the tool—sometimes as much as four times the normal wear. With improved cutting tool materials and geometry, the volume of machine tool sales will inevitably drop because the tools are designed to reduce the frequency of replacement. Likewise, improved engineering design of metal castings intentionally reduce the amount of removable machine stock, requiring less cutting tool activity.
The background and development of cutting tools...
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