US Cutting Tool Shipments Reach $215M in December 2025, Up 17.1% Year Over Year

U.S. cutting tool shipments totaled $215 million in December 2025, marking a 17.1% increase compared to December 2024 and a 4.3% rise from November 2025, according to the latest Cutting Tool Market Report.

The monthly report is a collaboration between AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI), which track U.S. manufacturers’ consumption of cutting tools — a key indicator of manufacturing activity.

Full-Year 2025 Results

For full-year 2025, U.S. cutting tool shipments reached $2.56 billion, representing a 2.5% increase over 2024 totals. The report notes that cutting tool consumption is considered a leading indicator of manufacturing trends because cutting tools are primary consumables used in production processes.

Sector Trends and Outlook

Industry analysts cited continued strength in aerospace and automotive manufacturing as contributors to recent gains.

Alan Richter, editor-at-large of Cutting Tool Engineering, said growth in aerospace and automotive sectors suggests cutting tool demand may continue through at least the first half of 2026. He also noted that IMTS – The International Manufacturing Technology Show, scheduled to take place in Chicago, is expected to support activity in the latter half of the year.

Eli Lustgarten, president of ESL Consultants, said 2025 marked the fifth consecutive year of increased orders since the downturn in 2020. He also pointed to expansion in the ISM Manufacturing Index in December 2025, the first expansion reading in 12 months.

According to Lustgarten, cutting tool demand could grow between 5% and 10% in 2026, with unit sales potentially catching up to dollar-sales growth. Aerospace and defense markets are expected to remain strong, while data center and energy sectors are projected to show continued demand. Construction markets may also see improvement. However, he noted that performance in the automotive sector could significantly influence overall growth, as the segment remained relatively flat in 2025 amid supply chain challenges and softer electric vehicle demand.

Manufacturing Indicator

Because cutting tool consumption directly reflects production activity, the Cutting Tool Market Report serves as a closely watched indicator of broader U.S. manufacturing conditions. December’s year-over-year growth and the full-year increase suggest continued stability in manufacturing output entering 2026.