U.S. machine shops and other manufacturers purchased $207.8 million worth of cutting tools during May, -2.3% less than during April and -5.0% less than in May 2024. Through five months of 2025, cutting-tool shipments have totaled $1.03 billion according to the Cutting Tool Market Report, a drop of 5.1% compared to January-May 2024.
It was the second consecutive month of falling demand for cutting tools, a decrease that is parallel to falling demand for CNC metal-cutting and metal-forming machines.
The CTMR is a joint presentation of the U.S. Cutting Tool Institute (USCTI) and AMT - the Assn. of Manufacturing Technology. The report tracks cutting-tool purchases as an indicator of overall manufacturing activity in the monthly Cutting Tool Market Report, because those products support a wide selection of industrial operations in automotive, aerospace, energy, and numerous other sectors.
The falling demand recorded for May reinforces the sense of uncertainty in the manufacturing sector as one effect of the tariffs on imports proposed or implied by President Trump since March.
“This summer, everyone is playing wait and see,” according Jack Burley, chairman of AMT’s Cutting Tool Product Group. “No one is investing in new production unless they have the security of a long-term project, such as for the defense industry, where cost is less important than delivery.
“Demand from the automotive market is weak, and the supply chain is getting squeezed by tariffs while vehicle manufacturers protect their bottom line,” Burley continued.
One supplier of cutting tools suggested the current market uncertainty over tariffs parallels broader manufacturing-sector weakness. “Sales of cutting tools through May reveal a controlled retreat rather than a collapse,” commented Costikyan Jarvis, president of Jarvis Cutting Tools. “The 5% drop in year-over-year numbers is consistent with the Institute for Supply Management’s Purchasing Managers Index (PMI) falling below 50 from March through May.
“Taken in context with other financial metrics like capacity utilization, new vehicle sales, and civilian aircraft production, the second half of this year will likely see a rebound in demand,” Jarvis added. “In short, the cutting tool market remains under pressure, but forward-looking industrial indicators hint that the worst of the pullback may be passing.”
AMT’s Burley implied that cutting tool prices may be an additional factor slowing demand. “When we closely check the cutting tool data, unit cost appears to have increased slightly since January, most likely due to price increases,” he explained. “However, it’s too early to establish a trend with variables like surcharges to know the real costs. I don’t know who will win the wait-and-see game, but I hope it works out for everyone soon.”
