cutting tools

The lower labor rates in Asia and East Europe is encouraging the shift of manufacturing facilities to these areas. Globalization has deeply affected the machine cutting tools industry with end user companies such as automobiles, job shops, and appliances shifting operations to countries in Asia. Since the machine tool industry is dependent on the state of the economy and specifically manufacturing levels, this shift will help the Chinese and East European markets expand. However, this growth will be mostly at the expense of the North American, European and Japanese markets. The overall metal cutting tools market is expected to improve as the economy improves and manufacturing picks up. Carbide tools are rapidly replacing steel in the metal cutting and forming industries. The metal finishing segment on the other hand is experiencing a surge in the use of super abrasives.