Slowing demand for cutting tools continues to show how uncertainty about tariffs as well as various industry-specific problems are slowing manufacturing activity.
The Cutting Tool Market Report tracks orders of cutting tools as an index to overall manufacturing activity, as those products are critical consumable products across major industries like automotive, aerospace, construction, defense, energy, among others.
Machine shops’ and other manufacturers’ consumption of cutting tools inched up to $210.6 million during August, 2.7% above July and just 1.8% above the August 2024 result. The new data brings year-to-date consumption of cutting tools to $1.66 billion, which is a -2.7% drop from the January-August total for 2024 according to the Cutting Tool Market Report.
The monthly CTMR tracks orders of cutting tools as an index to overall manufacturing activity, as those products are critical consumable products across major industries like automotive, aerospace, construction, defense, energy, and numerous other sectors.
The CTMR is compiled by AMT - the Assn. for Manufacturing Technology and the U.S. Cutting Tool Institute. “Key markets continue to struggle to gain traction as we approach the final quarter of 2025,” observed Steve Boyer, president of USCTI. “While shipments of cutting tools have fallen short of their 2024 levels in all but one month this year, July 2025 shipment numbers were significantly better than the previous year, and aerospace has been a segment of strength.”
AMT / CTMR
The month-by-month direction of U.S. cutting-tool consumption, August 2021 to August 2025. Steve Boyer, president of USCTI explained: “While shipments of cutting tools have fallen short of their 2024 levels in all but one month this year, July 2025 shipment numbers were significantly better than the previous year, and aerospace has been a segment of strength.”
Because cutting tool consumption spans virtually all manufacturing sectors, the demand is affected by broad trends shaping those activities – tariffs, for example.
Bret Tayne, president of Everede Tool Co., stated: “Uncertainty about the unfolding tariff situation and industry-specific challenges in some of the largest cutting-tool customer segments appear to be the major hurdles affecting sales. As tariffs and other measures become more stable, and with an assist from declining interest rates, the cutting-tool customer base may see some growth again as we finish out the year and head into 2026.”
“Some optimism exists with the de-escalation of war in the Middle East and hope for sustainable peace,” Boyer continued. “However, the weight of uncertainty with tariffs continues to hinder confidence and investment in the short term.”
