U.S. cutting tool shipments totaled $220.7 million in January 2026, marking a 9.9% increase over January 2025 and a 2.7% rise from December 2025, according to the latest Cutting Tool Market Report. The report is a collaboration between AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI).
While the dollar value of shipments increased, the number of units shipped decreased slightly from December 2025, reflecting a divergence between order value and unit volume, a trend sometimes observed in the cutting tool market.
Jack Burley, chairman of AMT’s Cutting Tool Product Group and president of Big Daishowa, described January’s results as a positive start to 2026. He noted that “activity, usage, and new projects all indicate that the latest trend is very positive,” while highlighting challenges from rising tungsten carbide raw material costs, which continue to pressure manufacturers.
Bret Tayne, president of Everede Tool Company, cautioned that shipments reflect ongoing market volatility. He noted that January’s 2.7% growth over December 2025 was the slowest month-to-month increase since 2022, and that broader economic uncertainty may affect industrial production projections.
The Cutting Tool Market Report tracks U.S. manufacturers’ consumption of cutting tools, a primary consumable in production processes. Cutting tool consumption is widely regarded as a leading indicator of manufacturing activity, reflecting real production levels across industrial sectors.
According to the report, growth in cutting tool shipments indicates sustained demand for industrial manufacturing and machining applications, including automotive, aerospace, and general metalworking. Analysts expect that continued monitoring of shipment trends will provide insights into broader U.S. manufacturing performance throughout 2026.