McLean, Va. (August 20, 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 $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,” said 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.”
Alan Richter, editor-at-large of Cutting Tool Engineering, said: “Year-to-year and year-to-date monthly totals are down for the first six months of the year – for the latter, that means a reversal of a 43-month upward trend. These reduced shipments of cutting tools have been negatively impacted by the ongoing chaos created by tariff whiplash and complications from geopolitical tensions. Businesses are pausing or reversing manufacturing-connected investments as they take a wait-and-see approach. Although recent trade deals have removed some business uncertainty, storm clouds remain on the horizon, limiting clarity.”
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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