US Cutting Tool Shipments Still Climbing

U.S. machine shops and other manufacturers purchased cutting tools totaling $259.3 million during March, 15.2% more than in February and $24.6 more than in March 2025. The new total brought Q1 2026 cutting tool shipments to $705.1 million, 15.9% higher than the January-March 2025 result.

Also, cutting-tool shipments during the period have shown increases in the units totals during February and March, a detail that offsets in part the effect of inflation on the rise in cutting-tool demand.

Increasing levels of manufacturing activity is also indicated by AMT’s recent U.S. Manufacturing Technology Orders report, an index to future manufacturing demand.

“Most machine shops are booking customer orders for all types of manufactured components at a pace not seen for several years, driving the demand for tooling and new equipment,” explained Jack Burley, president of Big Daishowa, and chairman of AMT’s Cutting Tool Product Group. “As a result, the March total for cutting-tool shipments broke all records, a clear indication that toolmakers are working hard to meet delivery demands and maintain inventory.”

Cutting tool shipments serve as an indicator of overall manufacturing activity, according to AMT - the Assn. for Manufacturing Technology and the U.S. Cutting Tool Institute, because the are critical consumables for manufacturers supplying major industrial sectors, like automotive, aerospace, construction, defense, energy, and numerous others.

The CTMR tracks shipments to machine shops and other machining operations across U.S. manufacturing.

Burley cautioned against excessive optimism about the rising demand. “Behind the good news are concerns about increasing costs and shortages of tungsten carbide and high-speed steel, as well as the escalating price of oil and gas due to the conflict in the Middle East,” he noted.

“Anyone reviewing this data should be cautious about interpreting dollar growth as demand growth in an environment where the cost inflation of raw materials is running at historic levels,” offered Costikyan Jarvis, president of cutting tool manufacturer Jarvis Cutting Tools.

A further possibility is that the March 2026 CTMR data signals “a significant buy-ahead effort, with customers anticipating price increases or supply disruptions,” according to Jarvis. “Sustained demand strength will need to be confirmed over the coming months before the industry can draw meaningful conclusions about the underlying trend.”