U.S. Cutting Tool Shipments Reach $199.9 Million in January 2025
The latest Cutting Tool Market Report, compiled by AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI), shows that shipments of cutting tools totaled $199.9 million in January 2025. This represents a 9.2% increase from December 2024 but a 4.1% decline compared to January 2024.
Industry Insights on Market Trends
Jack Burley, chairman of AMT’s Cutting Tool Product Group, noted that demand in January was weaker than usual, with many tooling companies seeing softer sales. “New investments are on hold, and most shops are only buying what they need to keep spindles turning,” Burley stated. He attributed this cautious approach to ongoing political uncertainties, which he believes are impacting manufacturing investments.
Eli Lustgarten, president of ESL Consultants, echoed these concerns, citing economic uncertainty and shifting political conditions, including rising tariffs, as factors affecting demand. According to Lustgarten, key industrial markets—such as farm equipment, construction, and mining—are experiencing significant inventory reductions in early 2025. He suggested that if political and economic conditions stabilize, demand could improve in the latter half of the year and into 2026 as production ramps up and inventory levels normalize.
Cutting Tool Market as an Economic Indicator
The Cutting Tool Market Report is a collaboration between AMT and USCTI, two organizations representing the cutting tool industry’s development, production, and distribution sectors. Cutting tool consumption serves as a key economic indicator, reflecting real production levels in U.S. manufacturing. A rise or decline in cutting tool shipments often signals broader trends in the manufacturing sector.
As the industry navigates economic and political challenges, manufacturers will be closely monitoring shifts in demand and investment patterns in the months ahead. The report will continue to provide insights into how these factors shape the cutting tool market and the broader manufacturing landscape.
