Dedalus Consulting (www.dedalusconsulting.com) has recently published Cutting Tools: World Markets, End-Users & Competitors: 2021-2027 Analysis & Forecasts, the completely updated 11th edition of Dedalus’ in-depth research on the global cutting tools industry.
The manufacturing of cutting tools is a complex endeavor and is touched by many industries from the materials preparation stage through the finishing stages of production. Some of these are plentiful and more easily sourced.
However, from 2020-2022, the deficiencies across multiple supply chains were brought into stark relief, and although they have somewhat been compensated for, they are not fully resolved. Supply chain disruptions can have a devastating impact on businesses and industries, and examining supply chains across different sectors of industry can be complicated. Further exacerbating the issue is that disruptions in one sector can ripple through an entire supply network, creating impacts on multiple industries. Risk management and resilience should be key pillars of any machining business’s strategy.
For example, the most important raw material in the production of cutting tools remains tungsten, and over 80% of the world tungsten supply originates in China. In 2022, supply chain issues surrounding the sourcing of tungsten from China continued to cause major issues not only in production within the tooling industry directly but also on the demand side within end-user industries, particularly within the semiconductor industry and the automotive industry.
Supply chain disruptions will continue to be prevalent, and they are likely to increase in frequency and intensity due to new challenges being caused by the impacts of climate change, technological change, world events, and trade policies.
Thus, moving forward it is important for manufacturers and end-users to have strategies in place that will help them prepare for ongoing supply chain disruptions. Some initiatives being taken include building multinational partner networks that will be able to supplement supply when there is a shortage or disruption; automating processes on the factory floor that will continue to decrease material usage; and implementing better efforts to recycle and reuse waste materials.
About Dedalus Consulting:
Dedalus Consulting is a privately owned and independently operated market research publisher and consultancy.
Our research focuses on both emerging and mature markets in high-technology sectors, including tooling and machining, advanced materials, frequency control and timing, surge and circuit protection, energy and renewables, life sciences, and next generation computing. Our clients range from Fortune 500 companies to private equity and investment banking institutions to academic research organizations engaged in the research, development and manufacturing of advanced technology products and services.
For more information, please contact Dedalus Consulting at firstname.lastname@example.org or call us at (212) 709-8352.