machining operations ordered $215 million worth of cutting tools during December 2025, 4.3% more than during November and 17.1% more than during December 2024, sustaining the upward trend for manufacturing activity that emerged during the closing months of last year. The latest Cutting Tool Market Report shows that total cutting tool shipments for 2025 amounted to $2.56 billion, a 2.5% rise over 2024 shipments.
The Cutting Tool Market Report is a monthly tally of 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.
CTMR is maintained and presented by the U.S. Cutting Tool Institute and AMT - the Assn. for Manufacturing Technology.
AMT’s parallel report of CNC machine tool orders suggested manufacturers are preparing for rising levels of production orders during the coming months.
The rise in 2025 shipments came during a period of general uncertainty in manufacturing activity, with material costs as U.S. tariffs limited steel and aluminum imports and automotive production slipping as OEMs adjusted to consumer demand.
In contrast, aerospace and defense manufacturing maintained high levels of production activity throughout the past year.
“2025 marked the fifth straight year of higher orders since the trough in 2020,” according to consultant Eli Lustgarten. “The ISM Manufacturing index signaled expansion for the first time in 12 months in December 2025. Cutting tool demand is likely to improve by about 5% to 10% in 2026, with lagging unit sales finally catching up to dollar-sales growth.”
He forecast that aerospace and defense would continue to perform at high levels of activity, and manufacturing demand tied to data center expansion and energy projects also show strong growth prospects.
“The key to the magnitude of improvement in 2026 may be the auto sector,” according to Lustgarten, “which was relatively flat in 2025 and continues to face supply chain issues and weakening electric vehicle demand.”
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.