Shipments of cutting tools, measured by the Cutting Tool Market Report, a collaboration between AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI), totaled $215 million in December 2025. The total increased 4.3% from November 2025 and 17.1% from December 2024. For full-year 2025, shipments totaled $2.56 billion, up 2.5% from 2024. 

Alan Richter, editor-at-large of Cutting Tool Engineering, said, “Growth in the aerospace and automotive sectors indicates cutting tool demand should continue the gains seen during the last quarter of 2025 through at least the first half of 2026. The upcoming IMTS – The International Manufacturing Technology Show in Chicago will stimulate positive activity for the second half of the year.” Eli Lustgarten, president of ESL Consultants, said: “2025 marked the fifth straight year of higher orders since the trough in 2020. 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. Aerospace and defense should remain strong; data centers and energy are projected to be robust; and construction markets should also improve. The key to the magnitude of improvement in 2026 may be the auto sector, which was relatively flat in 2025 and continues to face supply chain issues and weakening electric vehicle demand.”

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