January 2025 U.S. cutting tool consumption totaled $199.9 million according to the latest Cutting Tool Market Report (CTMR) published by the U.S. Cutting Tool Institute (USCTI) and the Association for Manufacturing Technology (AMT).

That total was up 9.2% from December 2024, but down 4.1% from January 2024.

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“January was quite soft for most tooling companies, even more so than normal,” AMT Cutting Tool Product Group Chairman Jack Burley said in the March 19 release. “New investments are on hold, and most shops are only buying what they need to keep spindles turning. Until the political conditions settle and the uncertainty they create for manufacturing is resolved, I expect to see very little improvement in consumption, especially for small businesses. There are different opinions on the speed at which we can bring more manufacturing back the U.S., so we can only wait and see how companies respond.”

ESL Consultants President Eli Lustgarten added: “Demand continues to suffer from economic uncertainty both here and abroad as well as from the changing political environment, especially with rising tariffs and the impact on supply chains and costs. Most major industrial end markets have become cautious: Heavy manufacturing sectors, including farm, construction and mining equipment manufacturers, are undergoing substantial inventory liquidation in the first half of 2025. Signs point to a sluggish, if not volatile, first half of 2025. If political conditions and tariffs stabilize, end-market demand may begin to improve in the second half of the year and into 2026 as production increases and inventory liquidation ends.”

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The CTMR 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 what they tout as the primary consumable in the manufacturing process — the cutting tool.

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.