Shipments of cutting tools to U.S. machine shops and other manufacturers totaled $204.1 million during June 2025, -1.8% less than the May total and -3.9% less than the June 2024 figure. It was the third consecutive month for falling shipment volumes in this index to U.S. manufacturing activity, and the fourth month/month drop of 2025.
During the period from January to June 2025, the CTMR shows cutting tool shipments totaled $1.23 billion, a -4.9% decrease versus the first half of 2024.
The first half of the year has been widely assessed as one of “uncertainty,” referring to manufacturers’ indecision over capital investments and slower-than-forecast industrial activity. An inconsistent U.S. tariff program has been widely identified as the underlying cause of the uncertainty, but global tensions and weaker consumer spending have also been cited as defining factors.
The monthly Cutting Tool Market Report tracks cutting-tool purchases as an indicator of overall manufacturing activity because those products support a wide selection of industrial operations in automotive, aerospace, energy, and numerous other sectors. Ordering activity in 2025
The CTMR is issued by AMT - the Assn. for Manufacturing Technology and the U.S. Cutting Tool Institute based on shipments recorded by manufacturers and distributors of cutting tools. Because cutting tools are the primary consumable products used across manufacturing sectors, cutting tool consumption serves as a reliable measure of actual manufacturing activity.
“As we continue to wait for clarity on tariffs, demand for cutting tools has stagnated and cooled,” stated Steve Boyer, president of USCTI. “The tariffs that have been implemented have increased raw material costs, and the ongoing challenge of finding talented workers remains concerning.”
Boyer continued: “Orders for cutting tools have declined month over month and year over year in April, May, and June. Key markets such as aerospace, automotive, and heavy equipment continue to drive demand, but they have remained stagnant so far this year.”
