2014 U.S. MARKET ANALYSIS: CUTTING TOOLS MRO DATA · products (6-Digit naics) The following data represent consumption at the 6-digit NAICS end-user level for the top 20 construction

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2014 U.S. MARKET ANALYSIS:

CUTTING TOOLSMRO DATAESTIMATED END-USER DEMAND BY REGION & END-MARKET

©2015 by Gale Media, Inc. All rights reserved. Material may not be reproduced in whole or in part in any form whatsoever without permission from the publisher. To request permission to copy, republish, or quote material, please call 303-443-5060.

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2014 CUTTING TOOLS MRO MARKET REPORTMDM.COM

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2008 2009 2010 2011 2012 2013

The Cutting Tools market as defined in this report is made up of the following product categories:

Tools Cutting-Carbide – Solid carbide tools and inserts and carbide-tipped cutters, bits, other “small” tools

Tools Cutting-High Speed Steel – Carbon/high-speed steel shank, solid, tipped carbide twist drills; other cutting tools for machine tools; end mills and milling cutters; dies taps, carbide indexable, specials; metalworking/woodcutting

Product Category & Definition

The U.S. market size for cutting tool products is estimat-ed at $XX billion, based on end-of-year 2013 data accord-ing to MDM Analytics’ annual analysis of Cutting Tools MRO markets. Find the methodology and a definition of MRO on page 10 of this report.

This report provides a high-level view of the total mar-ket demand for cutting tool products by providing the estimated end-market consumption of these products. This does not represent the amount sold by wholesaler-distributors. A percentage of the total estimated demand is sold direct from manufacturers to end-user.

Executive Summary

Estimated overall market demand: 2008-2013Estimated market demand for Cutting Tools from 2008 to 2013 showed a quick recovery after the heart of the recession in 2009.

Cutting Tools MRO ProfileEstimated demand: $XX Billion

Cutting Tools MRO: XX%

Other Industrial MRO: XX%

Total Industrial MRO Market Size: $XX Billion

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Mill

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Cutting Tools MRO market by product category ($M)The following data provide an overview of Cutting Tools MRO product categories and their share of the total Cutting Tools MRO market in the U.S. in millions of dollars. Carbide Cutting Tools was a $XX billion market in the U.S. High Speed Steel Cutting Tools was a $XX billion market in the U.S.

u.s. Market

Cutting Tools MRO market by product category (%)The following data provide an overview of Cutting Tools MRO product categories and their share of the total Cutting Tools MRO market in the U.S. by percentage. Carbide Cutting Tools made up XX% of the market, where High Speed Steel Cutting Tools made up about XX% of the market.

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Tools Cutting-Carbide 60.1%

Tools Cutting-High Speed Steel 39.9%

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Tools Cutting-Carbide

Tools Cutting-High Speed Steel

Millions

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u.s. Market

Cutting Tools regional market analysis The following data represent estimated consumption at the end-user level by U.S. region of Cutting Tools products in the U.S. based on the Cutting Tools market size of $XX billion. These estimates represent purchases at the end-user level in U.S. dollars and include the distributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases.

Northeast CentralXX%

Total Market.... $XX M

New englandXX%

Total Market....$XX M

Mid-AtlanticXX%


South AtlanticXX%

Total Market...$XX M

Southeast CentralXX%


Southwest CentralXX%


Mountain statesXX%


Pacific CoastalXX%


northwest centralXX%


NORTHEAST CENTRAL: Illinois, Indiana, Michigan, Ohio, Wisconsin

SOUTH ATLANTIC: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia

SOUTHWEST CENTRAL: Arkansas, Louisiana, Oklahoma, Texas

PACIFIC COASTAL: Alaska, California, Hawaii, Oregon, Washington

MID-ATLANTIC: New Jersey, New York, Penn-sylvania

NORTHWEST CENTRAL: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota

SOUTHEAST CENTRAL: Alabama, Kentucky, Mississippi, Tennessee

MOUNTAIN STATES: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming

NEW ENGLAND: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont

STATES INCLUDED IN EACH OF THE NINE U.S. REGIONS, ACCORDING TO THE U.S. CENSUS BUREAU:

U.S. TotalTotal Market....$XXM

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Cutting tools market by u.s. stateThe following shows the consumption of Cutting Tools products at the end-user level by state based on the $XX billion total.

State

Est. Demand($millions)

California

Texas

Michigan

Illinois

Ohio

Wisconsin

New York

Pennsylvania

Indiana

Florida

North Carolina

Iowa

Minnesota

Georgia

Washington

Tennessee

Connecticut

Massachusetts

Missouri

New Jersey

Kentucky

South Carolina

Virginia

Arizona

Oklahoma

Alabama

State


Colorado

Kansas

Nebraska

Louisiana

Maryland

Oregon

Mississippi

Utah

Arkansas

New Hampshire

South Dakota

Nevada

North Dakota

Maine

New Mexico

Rhode Island

Idaho

Vermont

West Virginia

Delaware

Hawaii

Wyoming

Montana

Alaska

District of Columbia

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u.s. Market

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Cutting Tools market: consumption by end-market (2-Digit naics)The following data provide a closer look at Cutting Tools MRO consumption by U.S. end-market based on 2-digit NAICS.

Total estimated Cutting Tools MRO product END-MARKET consumption

$XX Billion

manufacturing (31-33):

$XX Million

construction (23):

u.s. Market

$XX Million

other:$XX million

* Wholesale Trade illustrates end-market, MRO products consumed at distribution facilities and not resale items/inventory.

DATA METHODOLOGY NOTE:The data on this page and the following pages represent estimated total consumption at the end-user level of MRO products in the U.S., according to MDM Analytics. These estimates represent purchases at the end-user level in U.S. dollars and include the distributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases.

HEALTH CARE AND SOCIAL ASSISTANCE

MINING, QUARRYING AND OIL AND GAS EXTRACTION

UTILITIES

TRANSPORTATION AND WAREHOUSING

RETAIL TRADE

PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES

WHOLESALE TRADE*

OTHER SERVICES

ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIA-

TION SERVICES

PUBLIC ADMINISTRATION

AGRICULTURE, FORESTRY, FISHING AND HUNTING

INFORMATION

EDUCATIONAL SERVICES

ACCOMMODATION AND FOOD SERVICES

REAL ESTATE AND RENTAL AND

LEASING

ARTS, ENTERTAINMENT AND RECREATION

FINANCE AND INSURANCE

MANAGEMENT OF COMPANIES

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top 20 manufacturing end-markets consuming Cutting Toolsproducts (6-Digit naics)The following data represent consumption at the 6-digit NAICS end-user level for the top 20 manufacturing (NAICS 31-33) industries consuming Cutting Tools products in the U.S., according to MDM Analytics estimates. These estimates represent purchases at the end-user level and include the distributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases.

u.s. Market

NAICS End-Market


336412 Aircraft Engine and Engine Parts Manufacturing

333120 Construction Machinery Manufacturing

333111 Farm Machinery and Equipment Manufacturing

332710 Machine Shops

336390 Other Motor Vehicle Parts Manufacturing

336411 Aircraft Manufacturing

333618 Other Engine Equipment Manufacturing

333517 Machine Tool Manufacturing

336111 Automobile Manufacturing

333911 Pump and Pumping Equipment Manufacturing

335312 Motor and Generator Manufacturing

333514 Special Die and Tool, Die Set, Jig, and Fixture Manufactur-ing

333515 Cutting Tool and Machine Tool Accessory Manufacturing

332911 Industrial Valve Manufacturing

332721 Precision Turned Product Manufacturing

333132 Oil and Gas Field Machinery and Equipment Manufactur-ing

333999 All Other Miscellaneous General Purpose Machinery Manufacturing

333415 Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing

333611 Turbine and Turbine Generator Set Units Manufacturing

332216 Saw Blade and Handtool Manufacturing

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top 20 construction end-markets consuming Cutting Toolsproducts (6-Digit naics)The following data represent consumption at the 6-digit NAICS end-user level for the top 20 construction (NAICS 23) industries consuming Cutting Tools products in the U.S., according to MDM Analytics estimates. These estimates represent purchases at the end-user level and include the distributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases.

u.s. Market

NAICS End-Market


238220 Plumbing, Heating, and Air-Conditioning Contractors

238210 Electrical Contractors and Other Wiring Installation Contractors

236220 Commercial and Institutional Building Construction

237310 Highway, Street, and Bridge Construction

238160 Roofing Contractors

238130 Framing Contractors

236115 New Single-Family Housing Construction (except For-Sale Builders)

237990 Other Heavy and Civil Engineering Construction

236116 New Multifamily Housing Construction (except For-Sale Builders)

236210 Industrial Building Construction

238110 Poured Concrete Foundation and Structure Contractors

237110 Water and Sewer Line and Related Structures Construction

238990 All Other Specialty Trade Contractors

238120 Structural Steel and Precast Concrete Contractors

236118 Residential Remodelers

238390 Other Building Finishing Contractors

238310 Drywall and Insulation Contractors

238910 Site Preparation Contractors

238190 Other Foundation, Structure, and Building Exterior Contractors

238330 Flooring Contractors

238350 Finish Carpentry Contractors

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top 10 OTHER end-markets consuming Cutting Tools products(6-Digit naics)

The following data represent consumption at the 6-digit NAICS end-user level for the top 10 other industries (excluding manufacturing and construction) consuming Cutting Tools products in the U.S., according to MDM Analytics estimates. These estimates represent purchases at the end-user level and include the distributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases.

NAICS End-Market


811111 General Automotive Repair

541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

423510 Metal Service Centers and Other Metal Merchant Wholesalers

811310 Commercial and Industrial Machinery and Equipment (except Auto-motive and Electronic) Repair and Maintenance

221115 Wind Electric Power Generation

221118 Other Electric Power Generation

811118 Other Automotive Mechanical and Electrical Repair and Mainte-nance

811121 Automotive Body, Paint, and Interior Repair and Maintenance

561790 Other Services to Buildings and Dwellings

452112 Discount Department Stores

Health Care and Social AssistanceMining, Quarrying and Oil and Gas ExtractionUtilitiesTransportation and WarehousingRetail TradeProfessional, Scientific and Technical ServicesWholesale Trade*Other ServicesAdministrative and Support and Waste Management and Remediation ServicesPublic Administration

Agriculture, Forestry, Fishing and HuntingInformationEducational ServicesAccommodation and Food ServicesReal Estate and Rental and LeasingArts, Entertainment and RecreationFinance and InsuranceManagement of Companies

End-markets that fall under “Other” include:

* Wholesale Trade illustrates end-market, MRO products consumed at distribution facilities and not resale items/inventory.

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COPYRIGHT AND TERMS OF USE

Copyright © 2015 by Modern Distribution Management and MDM Analytics/Gale Media, Inc. All rights reserved. This report is protected by copyright law and may not be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or resold, in whole or in part, in any form or manner or by any means what-soever, by any person without prior written consent from Gale Media, Inc. This report may not be used in commercial documents without the written permission of the copyright holder. You may make one machine readable copy and/or one print copy for your personal use. You may also include limited excerpts of this content in printed memos, reports and presentations for non-commercial use. We ask that you attribute this information by including “Source: 2014 MRO Market Analysis ©2015 MDM Analytics. All rights reserved.”

DISCLAIMER

This report is for informational purposes only and is provided “as is” without any express or implied warranty. The analy-ses in this report are based solely on information and data that is in the public domain. Any conclusions, findings, opin-ions, or recommendations are based on our own experienced and professional judgment and interpretations given the information available. While all information is believed to be reliable at the time of writing, the information provided here is for reference use only and does not constitute the rendering of legal, financial, commercial, or other professional advice by Gale Media, Inc., or the authors. Any reliance upon the information is at your own risk, and Gale Media, Inc., and the authors shall not be responsible for any liability arising from or related to the use or accuracy of the information in any way. Gale Media, Inc., does not make investment recommendations, in this report or otherwise. Nothing in this report should be interpreted as an opinion by Gale Media, Inc., or the authors on the investment prospects of specific companies.

METHODOLOGY

The data in this MRO Market Analysis uses MDM Analytics’ proprietary predictive modeling, which starts with a public aggregate market size estimate by product category for a given geography. MDM Analytics then uses a combination of public and private databases to allocate estimated demand to deeper geographic levels and to specific customer seg-ments, as defined at the six-digit North American Industry Classification System (NAICS). This approach provides a total market size estimate without regard to market channels.

All estimates in this report are in U.S. dollars and represent the end-user market demand that includes an estimated average distributor margin by product category in the calculations.

DEFINING MRO

In this report, MRO is defined as: maintenance, repair and operations. MRO products are used in production and plant maintenance and may include maintenance supplies (such as cleaning materials), parts or consumables used during production (such as lubricants, safety equipment or tools). Traditionally, companies have not paid as much attention to the procurement of these materials as they have with OEM materials, original equipment manufacturing, or materi-als that go into the product itself. However, in part due to the Great Recession, customers are becoming increasingly more strategic about MRO purchases. Wholesaler-distributors are capitalizing on this shift to provide services that help customers save money and improve processes surrounding MRO procurement.



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MDM Analytics is the leading market analytics firm for industrial and construction products in North America. Since 1987, MDM Analytics has helped clients reach their full market potential with data services, dashboards and sales force manage-ment tools to target high-potential customers and markets.

MDM Analytics is an essential resource for clients seeking to:

• develop a comprehensive view of their market segments;• identify market penetration & untapped potential;• target the highest potential geographic regions, customer segments & product categories;• assess individual customer & prospect potential;• more effectively deploy resources; and• improve sales growth, margins and return on capital.

MDM Analytics’ capabilities are built on a team of seasoned professionals and a unique database delivering reliable market size and segmentation services for more than 200 MRO/OEM products.

Looking for more information? Get a deeper Market Profile:

If you’d like market data at the MSA, county postal code level or would like information about different products, please contact MDM Analytics at 877-224-9677 or email [email protected] and reference this report for your discounted quote. MDM Analytics reports are customizable to help you penetrate deeper into your market.

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ABOUT THE AUTHORS

Data and trend analysis were produced by Modern Distribution Management (www.mdm.com) and MDM Analytics, formerly Industrial Market Information (www.imidata.com).

Modern Distribution Management and MDM Analytics are divisions of Gale Media, Inc.

Gale Media (www.mdm.com) is a market-leading information services and publishing company. Its two business units – Modern Distribution Management and MDM Analytics – provide knowledge products and services to professionals in industrial product and wholesale distribution markets. Since 1967, MDM has been the definitive resource for distribu-tion management innovative practices, competitive intelligence and market trends through its twice-monthly news-letter, market intelligence reports, books and conferences. MDM Analytics provides proprietary market research and analytic services to profile market share and account potential for industrial products.



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2014 U.S. MARKET ANALYSIS: CUTTING TOOLS MRO DATA · products (6-Digit naics) The following data represent consumption at the 6-digit NAICS end-user level for the top 20 construction