US Cutting Tool Shipments Up 12.8% from Last Year

The latest edition of the Cutting Tool Market Report indicates shipments of cutting tools totaled $225.1 million in February, up 2.0% from the January total and up 12.8% from February 2025. With a January-February cumulative total of $445.8 million, cutting tool shipments are up 11.3% year-to-date.

The CTMR is supplied by the U.S. Cutting Tool Institute and AMT - the Assn. for Manufacturing Technology. The monthly summary 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.

“The first quarter of 2026 looks a bit better from a sales perspective,” according to Mike Stokey, USCTI president. “Unfortunately, there continues to be uncertainty regarding the cost and supply of raw materials.

“The leadership and membership of USCTI are keeping a close eye on this issue,” Stokey continued. “These factors, along with the war in the Middle East, are requiring constant attention from our entire industry.”

The U.S. war with Iran began February 28, so the report is unlikely to include any impact it may have had on cutting tools sales and shipments.

Michelle Kocses, a senior economist at ITR Economics, noted rising industrial activity is spurring demand thanks to construction and defense spending.

“The year is off to a strong start, with cutting tool orders up double digits from the start of 2025,” Kocses stated. “Higher demand is supported by rising industrial activity. Construction machinery, defense, and aerospace markets are leading the growth. Laggards include the heavy truck, light vehicle, and medical equipment markets. Organic market growth will likely drive top lines higher, but it is important to focus on efficiency given multi-faceted cost pressures.”