Report: CUTTING TOOLS AND OTHER MACHINE TOOL ATTACHMENTS AND ACCESSORIES: 2004/2005 MARKET OUTLOOK TOC

CHAPTER I: EXECUTIVE OVERVIEW

Market Performance 1
Producer Prices 2
Industry Economics 2
Foreign Trade 3
Machine Tool Consumption 3
End-Use Markets 4

CHAPTER II: THE U.S. MARKET FOR CUTTING TOOLS AND OTHER MACHINE TOOL ATTACHMENTS AND ACCESSORIES

U.S. Manufacturers' Sales 5
Overall Market 5
Major Product Categories 6
Detailed Product Types 9
Technology 15
The Economy and Its Effect on Demand 16

CHAPTER III: PRODUCER PRICE TRENDS

The Impact of Raw Materials on Pricing 19
Producer Price Trends 20
Small Cutting Tools 20
Twist Drills and Related Products 21
End Mills and Milling Cutters 23
Threading Tools 23
Dies 24
Reamers 25
Special Tooling and Attachments 26

CHAPTER IV: STRUCTURAL ANALYSIS OF THE INDUSTRY

Industry Sales 28
Payroll Costs, Material Costs, and Gross Margins 29
Employment Structure 29
Consolidation 41
Number of Establishments 43

CHAPTER IV: STRUCTURAL ANALYSIS OF THE INDUSTRY (cont'd.)

The Plant Manager's Workbook 46
How to Use This Section 46
Gathering Your Data 47
Developing Your Ratios 48
How Does Your Plant Stack Up? 49
Explanation of Terms 54

CHAPTER V: FOREIGN TRADE

Overview 60
U.S. Exports 62
U.S. Imports 68

CHAPTER VI: THE U.S. MARKET FOR MACHINE TOOLS

U.S. Manufacturers' Sales 74
Worldwide Machine Tool Consumption 77
Industry Structure 79

CHAPTER VII: THE U.S. AUTOMOTIVE INDUSTRY

Consumer Expenditures 84
U.S. Motor Vehicle Production 88
Nonunion Production Increases 91
Retail Sales 92
Hybrids Gain Recognition 95

CHAPTER VIII: THE U.S. MARKET FOR AIRCRAFT, SPACE VEHICLES, MISSILES, AND PARTS

U.S. Manufacturers' Sales 97
Shortage of Engineers Predicted for the Future 104
Boeing and Finmeccanica Sign Cooperative Agreement 105

CHAPTER IX: MACHINE SHOPS

Overview 106
Capital Spending 107
Number of Establishments 108

CHAPTER X: THE U.S. MARKET FOR CONSTRUCTION, AGRICULTURAL, MINING, AND OIL AND GAS FIELD MACHINERY AND EQUIPMENT

Overview 113
Construction Machinery and Equipment Manufacturing 115
Farm Machinery and Equipment Manufacturing 121
Sales Performance 121
The Farm Security and Rural Investment Act 123
Lawn, Garden, and Snow Equipment Manufacturing 124
Sales Performance 124
Environmental and Safety Issues 127
Mining Machinery and Equipment Manufacturing 128
Sales Performance 128
E-Commerce and Computerization 131
Oil and Gas Field Machinery and Equipment Manufacturing 132

CHAPTER XI: COMPANY PROFILES

Introduction 139
Company Profiles 143
The 600 Group PLC 143
Overview 143
Operating Segments 144
Accuromm USA Inc. 144
Overview 145
Products 145
Alvord-Polk, Inc. 146
DoALL Company 147
Fullerton Tool Company Inc. 148
Ingersoll International Inc. 148
Kennametal Inc. 149
Overview 149
Business Segments 150
International Operations 151
Marketing and Distribution 151
Properties and Employees 152
Corporate News 152
MSC Industrial Direct Co., Inc. 153
Overview 154
Products 154
Customers 154
Precision Twist Drill Company 155
Overview 155
Products 155
Sandvik AB Acquires North American Tool Company Valenite 156

CHAPTER XI: COMPANY PROFILES (cont'd.)

Company Profiles (cont'd.)
Reynolds Machine and Tool Corporation 157
Tivoly S.A. 157
Overview 157
Tivoly Inc. 158
Union Tool Co. 158

LIST OF TABLES

Table II-1 U.S. Manufacturers' Sales of Cutting Tools and Other Machine Tool Attachments and Accessories 6
Table II-2 U.S. Manufacturers' Sales of Cutting Tools and Other Machine Tool Attachments and Accessories, by Major Product Category 8
Table II-3 Product Mix of U.S. Manufacturers' Sales of Cutting Tools and Other Machine Tool Attachments and Accessories, by Major Product Category 8
Table II-4 U.S. Manufacturers' Sales of Threading Tools for the Machine Tool and Metalworking Industry, by Type 11
Table II-5 U.S. Manufacturers' Sales of End Mills and Milling Cutters for the Machine Tool and Metalworking Industry, by Type 12
Table II-6 U.S. Manufacturers' Sales of Carbon Steel and High-Speed Steel Shank Twist Drills for the Machine Tool and Metalworking Industry, by Type 12
Table II-7 U.S. Manufacturers' Sales of Twist Drills, Gun Drills, Combined Drills, Countersinks, and Counterbores for the Machine Tool and Metalworking Industry, by Type 13
Table II-8 U.S. Manufacturers' Sales of Other Small Cutting Tools for the Machine Tool and Metalworking Industry, by Type 13
Table II-9 U.S. Manufacturers' Sales of Other Attachments and Accessories for the Machine Tool and Metalworking Industry, by Type 14
Table II-10 U.S. Manufacturers' Sales of Other Cutting Tools for the Machine Tool and Metalworking Industry, Not Elsewhere Classified, by Type 15
Table III-1 Producer Price Index for Small Cutting Tools for Machine Tools and Metalworking Machinery 21
Table III-2 Producer Price Index for Twist Drills, Gun Drills, Combined Drills, Countersinks, and Counterbores 22
Table III-3 Producer Price Index for Carbon Steel and High-Speed Steel Shank Twist Drills 22
Table III-4 Producer Price Index for End Mills and Milling Cutters 23
Table III-5 Producer Price Index for Threading Tools 24
Table III-6 Producer Price Index for Dies with Two or More Thread-Forming Edges Integral with the Body 25
Table III-7 Producer Price Index for Reamers, Excluding Gun Reamers 26
Table III-8 Producer Price Index for Special Tooling and Attachments for Screw and Automatic Machines 27
Table IV-1 Operating Structure of the U.S. Cutting Tool and Other Machine
Tool Attachments and Accessories Industry 30
Table IV-2 Gross Operating Margin in the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 31
Table IV-3 Value Added by Manufacture in the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 31
Table IV-4 Vertical Integration Index for the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 32
Table IV-5 Employment Structure of the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 33
Table IV-6 Total Labor Costs in the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 34
Table IV-7 Average Hourly Earnings of Production Workers in the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 35
Table IV-8 Cost of Living Index for Production Workers in the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 36
Table IV-9 Labor Productivity in the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 37
Table IV-10 Indexes of Real Labor Productivity in the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 38
Table IV-11 New Capital Expenditures by the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 39
Table IV-12 Plant vs. Equipment Expenditures by the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 40
Table IV-13 Ending Inventories in the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry 41
Table IV-14 Number of Establishments in the U.S. Cutting Tool and Other Machine Tool Attachments and Accessories Industry, by Employment Size and by State 44
Table V-1 U.S. Apparent Consumption of Cutting Tools and Other Machine Tool Attachments and Accessories 62
Table V-2 U.S. Balance of Trade for Cutting Tools and Other Machine Tool Attachments and Accessories 62
Table V-3 Top 20 U.S. Export Destinations for Cutting Tools and Other Machine Tool Attachments and Accessories 64
Table V-4 U.S. Exports of Cutting Tools and Other Machine Tool Attachments and Accessories, by Type 65
Table V-5 Top 20 U.S. Import Sources for Cutting Tools and Other Machine Tool Attachments and Accessories 69
Table V-6 U.S. Imports of Cutting Tools and Other Machine Tool Attachments and Accessories, by Type 70
Table VI-1 U.S. Manufacturers' Sales of Machine Tools 76
Table VI-2 Product Mix of U.S. Manufacturers' Sales: Metal-Cutting vs. Metal-Forming Machine Tools 77
Table VI-3 Machine Tool Consumption, by Country 78
Table VI-4 Number of Employees, Annual Payroll, and Number of Establishments in the U.S. Metal-Cutting Machine Tool Industry, by State 80
Table VI-5 Number of Employees, Annual Payroll, and Number of Establishments in the U.S. Metal-Forming Machine Tool Industry, by State 82
Table VII-1 Personal Consumption Expenditures for User-Operated Transportation, by Type 86
Table VII-2 Average Annual Consumer Expenditures on Vehicle Maintenance and Repairs, by Region 87
Table VII-3 Average Annual Consumer Expenditures on Vehicle Maintenance and Repairs, by Income Before Taxes 87
Table VII-4 U.S. Motor Vehicle Production 90
Table VII-5 U.S. Motor Vehicle Production, by Type 91
Table VII-6 U.S. Retail Sales of Passenger Cars, Domestic vs. Imported 94
Table VII-7 U.S. Retail Sales of Trucks, Domestic vs. Imported 95
Table VIII-1 U.S. Manufacturers' Sales of Aircraft, Space Vehicles, Missiles, and Parts 99
Table VIII-2 Product Mix of U.S. Manufacturers' Sales of Aircraft, Space Vehicles, Missiles, and Parts 100
Table VIII-3 U.S. Manufacturers' Sales of Aircraft, Aircraft Engines and Engine Parts, and Aircraft Parts and Auxiliary Equipment 101
Table VIII-4 U.S. Manufacturers' Sales of Aircraft, Aircraft Engines and Engine Parts, and Aircraft Parts and Auxiliary Equipment, by Type 102
Table VIII-5 U.S. Manufacturers' Sales of Guided Missiles and Space Vehicles 103
Table VIII-6 U.S. Manufacturers' Sales of Guided Missiles and Space Vehicles, by Type 104
Table IX-1 U.S. Machine Shop Product Shipments 107
Table IX-2 Number of Employees, Annual Payroll, and Number of Establishments in the U.S. Machine Shop Industry, by State 109
Table IX-3 Number of Machine Shops in the U.S., by Employment Size and by State 111
Table X-1 U.S. Manufacturers' Sales of Construction, Agricultural, Mining, and Oil and Gas Field Machinery and Equipment 114
Table X-2 U.S. Manufacturers' Sales of Construction, Agricultural, Mining, and Oil and Gas Field Machinery and Equipment, by Major Market Segment 115
Table X-3 U.S. Manufacturers' Sales of Construction Machinery and Equipment 117
Table X-4 U.S. Manufacturers' Sales of Construction Machinery and Equipment, by Type 118
Table X-5 U.S. Manufacturers' Sales of Farm Machinery and Equipment 122
Table X-6 U.S. Manufacturers' Sales of Farm Machinery and Equipment, by Type 123
Table X-7 U.S. Manufacturers' Sales of Lawn, Garden, and Snow Equipment 126
Table X-8 U.S. Manufacturers' Sales of Lawn, Garden, and Snow Equipment, by Type 126
Table X-9 U.S. Manufacturers' Sales of Mining Machinery and Equipment 129
Table X-10 U.S. Manufacturers' Sales of Mining Machinery and Equipment, by Type 130
Table X-11 U.S. Manufacturers' Sales of Oil and Gas Field Machinery and Equipment 134
Table X-12 U.S. Manufacturers' Sales of Oil and Gas Field Machinery and Equipment, by Type 135
Table XI-1 Financial Profile of Manufacturers of Cutting Tools, Other Machine Tool Accessories, and Precision Measuring Devices 140
Table XI-2 Financial Profile of Manufacturers of Cutting Tools, Other Machine Tool Accessories, and Precision Measuring Devices, Sorted by Sales 141
Table XI-3 Financial Profile of Manufacturers of Cutting Tools, Other Machine Tool Accessories, and Precision Measuring Devices, Sorted by Assets 142

LIST OF FIGURES

Figure VII-1 Motor Vehicle Production, by Region 8

CUTTING TOOLS AND OTHER MACHINE TOOL ATTACHMENTS AND ACCESSORIES: 2004/2005 MARKET OUTLOOK

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