US Cutting Tool Orders See Modest July Growth, Annual Shipments Decline

Shipments of cutting tools in the United States reached $216.2 million in July 2025, according to the Cutting Tool Market Report (CTMR), a joint publication by AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI). This figure represents a 4.9% increase from June 2025 and a 9.8% rise compared to July 2024. However, year-to-date shipments through July 2025 totaled $1.45 billion, marking a 2.9% decrease from the same period in 2024.

Jack Burley, chairman of AMT’s Cutting Tool Product Group, observed that the latest trends show modest growth, aligning with activity in most shops that continue to have orders to fill without significant signs of slowing. However, he highlighted ongoing concerns in the automotive, construction, and agricultural sectors, which are particularly affected by sales and tariffs, leading to investment delays. Burley also noted that the stabilization of tariff costs for imported tools and raw materials might be contributing to a temporary stabilization of prices.

Eli Lustgarten, president of ESL Consultants, suggested that the cutting tool sector may have seen the worst, but businesses are currently adopting a "wait-and-see" approach. He projects a relatively flat outlook with a positive bias for the second half of 2025 and into 2026. Lustgarten identified aerospace as the primary driver of end-market demand, while the automotive sector faces supply chain issues related to trade and the expiration of EV incentives, potentially leading to slower production.

Regarding the heavy equipment market, Lustgarten described it as flat, with possible positive trends in construction due to reduced inventories, a slight uptick in trucks, and potential improvements in mining. Conversely, the agricultural sector's outlook continues to decline, attributed to record yields, rising carryovers, and falling prices, which have resulted in recent layoffs.

The Cutting Tool Market Report (CTMR) is a collaborative effort between AMT and USCTI, organizations that represent the cutting tool technology and products industry. The report provides a monthly overview of U.S. manufacturers’ consumption of cutting tools, serving as an indicator for upturns and downturns in U.S. manufacturing activity by measuring actual production levels.