McLean, Va. (October 21, 2025) — 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 $210.6 million in August 2025. Orders decreased 2.7% from July 2025 and 1.8% from August 2024. Year-to-date shipments totaled $1.66 billion, down 2.7% from the same period in 2024.
“Key markets continue to struggle to gain traction as we approach the final quarter of 2025,” said Steve Boyer, president of USCTI. “While shipments of cutting tools have fallen short of their 2024 levels in all but one month this year, July 2025 shipment numbers were significantly better than the previous year, and aerospace has been a segment of strength. Some optimism exists with the de-escalation of war in the Middle East and hope for sustainable peace. However, the weight of uncertainty with tariffs continues to hinder confidence and investment in the short term.”
Bret Tayne, president of Everede Tool Company, said: “Uncertainty about the unfolding tariff situation and industry-specific challenges in some of the largest cutting tool customer segments appear to be the major hurdles affecting sales. As tariffs and other measures become more stable, and with an assist from declining interest rates, the cutting tool customer base may see some growth again as we finish out the year and head into 2026.”
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.
AMT – The Association For Manufacturing Technology represents U.S.-based providers of manufacturing technology – the advanced machinery, devices, and digital equipment that U.S. manufacturing relies on to be productive, innovative, and competitive. Located in McLean, Virginia, near the nation’s capital, AMT acts as the industry’s voice to accelerate the pace of innovation, increase global competitiveness, and develop manufacturing’s advanced workforce of tomorrow. With extensive expertise in industry data and market intelligence, as well as a full complement of international business operations, AMT offers its members an unparalleled level of support. AMT also produces IMTS – The International Manufacturing Technology Show, the premier manufacturing technology event in North America. Learn more at AMTonline.org.
The United States Cutting Tool Institute (USCTI) was formed in 1988 and resulted from a merger of the two national associations representing the cutting tool manufacturing industry. USCTI works to represent, promote, and expand the U.S. cutting tool industry and to promote the benefits of buying American-made cutting tools manufactured by its members. The Institute recently expanded its by-laws to include any North American manufacturer and/or remanufacturer of cutting tools, as well as post-fabrication tool surface treatment providers. Members, which number over 80, belong to seven product divisions: Carbide Tooling, Drill & Reamer, Milling Cutter, PCD & PCBN, Tap & Die, Tool Holder and All Other Tooling. A wide range of activities includes a comprehensive statistics program, human resources surveys and forums, development of product specifications and standards, and semi-annual meetings to share ideas and receive information on key industry trends.
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