Hi guys,

I am conducting a research into the metalworking industry, specifically into carbide cutting tools.
I would really appreciate it if you could help me understand a few things:

1. There are 3 largest manufacturers for carbide cutting tools: Sandvik, Iscar and Kennametal. Yet, they only have about 50% of the global market combined. I know there are many other smaller carbide cutting tools makers.
My question is what would be the reasons for someone to buy from any smaller carbide cutting tools manufacturer and not from one of the top 3?

2. It seems that there are 4 primary categories to CNC manufacturers:
- Product producing companies
- Workpiece producing companies (contract/job shops)
- Tooling producing companies
- Prototype producing companies
My questions here are:

  • Most companies are either product or workpiece producers. Which category is larger and is it by far or close in size? Do most largest aerospace, automotive and the like, manufacturers do all their CNC in house? Do they contract out small or large parts of it?
  • What are the main differences between a prototype producer and a workpiece producer?
  • What are the approximate (rough estimate) market shares of each of the categories?

3. The carbide metal cutting tools is considered highly fragmented, with many niches.
What niches are there, at least that you are familiar with?
I am trying to get some idea as to why and how this market is fragmented.

4.There is a category of premium brands (like sandvik and iscar) and a category called mid market.
Who uses mid market brands and equipment?
Are those almost exclusively developing countries?
What are the faults in the mid market cutting tools compared to the premium brands?
What are the strongest industries in the developing coutries

5. How does the contracting process to job shops work as a part of a manufacturer's supply chain?

Thank you all SO MUCH, in advance