Shipments of cutting tools in the U.S. increased by 29% in July compared to the same month last year, according to the monthly Cutting Tool Market Report from the Association for Manufacturing Technology and the U.S. Cutting Tool Institute.
The report said that July orders amounted to $278.1 million, a new record total that was 2.8% more than the previous record set in June. The number of units shipped, meanwhile, was “steady” month to month.
For the year to date, the $1.75 billion in orders was up 20.7% over the first seven months of 2025.
“Consumption continues at a high level as most shops work on their backlog and incoming orders,” Jack Burley, the chairman of AMT’s Cutting Tool Product Group and president of cutting tool manufacturer Big Daishowa, said in a statement. “The carbide crisis has, however, increased user costs by double digits, most notably for the larger tools.”
He said that the trend was also poised to continue for the remainder of the year and into next year, as well.
But Michelle Kocses, senior economist at ITR Economics, noted in the report that the growth comes in an inflationary environment and that the growth was “unevenly distributed” between “booming” high-tech sectors and more sluggish legacy industries, including automotive.
“The inventory cycle in the durable goods space is likely to wind down in 2027, and consumer markets will be muted by weak real incomes and elevated borrowing costs,” Kocses said.
