Cutting tool shipments drop: What it means for manufacturing

Shipments of cutting tools, measured by the Cutting Tool Market Report, a collaboration between AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI), totaled $204.1 million in June 2025. Orders declined 1.8% from May 2025 and 3.9% from June 2024. Year-to-date shipments totaled $1.23 billion, a drop of 4.9% from the same period in 2024.

"As we continue to wait for clarity on tariffs, demand for cutting tools has stagnated and cooled," says Steve Boyer, president of USCTI. "The tariffs that have been implemented have increased raw material costs, and the ongoing challenge of finding talented workers remains concerning. Orders for cutting tools have declined month over month and year over year in April, May, and June. Key markets such as aerospace, automotive, and heavy equipment continue to drive demand, but they have remained stagnant so far this year."

The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production, and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers' consumption of the primary consumable in the manufacturing process, the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.