US Cutting Tool Demand Rising, but Uncertain

Shipments are up almost 10% year-over-year, but the month-to-month improvement is slower and recent events point to economic uncertainty for overall industrial production.
March 12, 2026
2 min read

Consumption of cutting tools by U.S. machining operations rose 2.7% from December 2025 to January 2026, which also marked a 9.9% rise over the January 2025 result. It reconfirmed an upward trend for domestic manufacturing activity that developed during the closing months of 2024 and continued steadily through last year.

The data is supplied by the latest Cutting Tool Market Report.

However, according Bret Tayne, president of cutting-tool manufacturer Everede Tool Co., noted that the January consumption data signals potential for continued volatility in cutting-tool demand. “Cutting tool shipments increased 2.7% from December 2025 to January 2026, which was the slowest growth between December and January since 2022. Recent events have raised economic uncertainty, complicating efforts to project levels of overall industrial production.”

CTMR data is supplied by the U.S. Cutting Tool Institute and AMT - the Assn. for Manufacturing Technology. CTMR tracks shipments to machine shops and other machining operations across U.S. manufacturing, and as such represents an effective index to overall manufacturing activity.

Cutting tools are critical consumables for manufacturers supplying major industrial sectors, like automotive, aerospace, construction, defense, energy, and numerous others.

“Activity, usage, and new projects all indicate that the latest trend is very positive,” commented Jack Burley, chairman of AMT’s Cutting Tool Product Group and president of cutting tool manufacturer Big Daishowa, a cutting tool manufacturer. “Overall, this year is off to a good start, with no indications of a slowdown. However, the cost of tungsten-carbide raw materials continues to increase, challenging cutting tool manufacturers to stay competitive.”

About the Author

Robert Brooks

Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries.

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