McLean, Va. (February 23, 2026) — 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 $215 million in December 2025. The total increased 4.3% from November 2025 and 17.1% from December 2024. For full-year 2025, shipments totaled $2.56 billion, up 2.5% from 2024. Alan Richter, editor-at-large of Cutting Tool Engineering, said, “Growth in the aerospace and automotive sectors indicates cutting tool demand should continue the gains seen during the last quarter of 2025 through at least the first half of 2026. The upcoming IMTS – The International Manufacturing Technology Show in Chicago will stimulate positive activity for the second half of the year.” Eli Lustgarten, president of ESL Consultants, said: “2025 marked the fifth straight year of higher orders since the trough in 2020. The ISM Manufacturing index signaled expansion for the first time in 12 months in December 2025. Cutting tool demand is likely to improve by about 5% to 10% in 2026, with lagging unit sales finally catching up to dollar-sales growth. Aerospace and defense should remain strong; data centers and energy are projected to be robust; and construction markets should also improve. The key to the magnitude of improvement in 2026 may be the auto sector, which was relatively flat in 2025 and continues to face supply chain issues and weakening electric vehicle demand.”
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 cutting tools, the primary consumable in the manufacturing process. Cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it measures true 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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