U.S. Cutting Tool Shipments Reach Record $278.1M in July

U.S. cutting tool shipments totaled $278.1 million in July 2026, an increase of 2.8% from June and 29% from July 2025, according to the Cutting Tool Market Report from AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI).

July shipments represented the highest monthly total recorded in the history of the report, surpassing the previous record set in June 2026. Year-to-date cutting tool shipments reached $1.75 billion through July, up 20.7% compared with the same period in 2025.

Unit shipments remained relatively steady from June to July, indicating that the increase in shipment value was not accompanied by a comparable increase in the number of tools shipped.

Cutting Tool Demand Remains Elevated

AMT reported that cutting tool consumption remained at a high level in July, with many manufacturing shops continuing to work through existing backlogs and incoming orders.

Jack Burley, chairman of AMT’s Cutting Tool Product Group and president of cutting tool manufacturer Big Daishowa, said increased costs associated with carbide have affected users, particularly for larger cutting tools.

Burley also pointed to the potential for manufacturers to consider alternatives to solid carbide tools as they manage material costs. One example is replaceable carbide-head tooling, which can allow portions of a tool to be replaced rather than replacing the entire tool.

Manufacturing Growth Varies by Sector

Michelle Kocses, senior economist at ITR Economics, described cutting tool shipment growth as robust but noted that it is occurring within an inflationary environment.

According to Kocses, manufacturing growth has been uneven across industries. Automotive and other established markets have experienced limited growth, while high-tech and defense-related industries have recorded stronger activity.

Kocses also said the inventory cycle in durable goods could wind down in 2027, while consumer markets may face pressure from weak real incomes and higher borrowing costs. These observations represent economic analysis rather than a projection independently verified by the Cutting Tool Market Report.

Cutting Tools as a Manufacturing Indicator

The Cutting Tool Market Report is jointly compiled by AMT and USCTI and tracks monthly U.S. cutting tool shipments.

Cutting tools are widely used in machining and other manufacturing processes, making shipment activity a measure of demand for a key manufacturing consumable. The organizations describe cutting tool consumption as an indicator of manufacturing activity because changes in shipments can reflect changes in production levels.

Through July 2026, the report shows cutting tool shipments running significantly above the previous year's level, with year-to-date shipment value up 20.7%.