The value of May U.S. cutting tool shipments totaled $239.8 million, according to the latest Cutting Tool Market Report (CTMR) published July 9 by the U.S. Cutting Tool Institute and the Association for Manufacturing Technology (AMT).
That figure was down 7.4% vs. April but up 15.2% year-over-year. Year-to-date shipments totaled $1.2 billion — up 16.8% from a year earlier. The number of units shipped fell for a second straight month after rising in March in February.
“Shipments dipped in May compared to the previous two months, which were very high and broke records, but were still very strong in nearly all categories reported,” said Jack Burley, Chairman of AMT’s Cutting Tool Product Group and President of Big Daishowa, a cutting tool manufacturer. “Carbide-based tools, such as drills and end mills, showed some noticeable increases in cost per unit – a clear indication that the carbide crisis, due to the lack of raw material, has increased costs for users. The demand on the metal cutting industry to increase output has strained the already scarce supply of tungsten. I don’t think we have reached the peak of higher prices for new tools yet, and this may be the right time for users to evaluate
their efficiency and improve tool life.”
“Shipments of cutting tools kept their robust upward trend in May, though it was driven by cost, reflecting material pricing and supply issues in the industry,” added Eli Lustgarten, President of ESL Consultants. “Manufacturing activity continues to show strength, with a favorable outlook for machined-part demand among construction machinery, defense, and aerospace manufacturers. While inflation is still running hot, recent soft jobs data and falling oil prices will hopefully provide enough cushion for the Federal Reserve to keep rates steady. The U.S. economic and manufacturing outlook for the second half of 2026 looks to continue to improve, barring any geopolitical shocks.”
The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process — the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.
The graph below includes the 12-month moving average for the durable goods shipments and cutting tool orders. These values are calculated by taking the average of the most recent 12 months and plotting them over time. Click on the chart for a larger version.
