Cutting Tool Industry Sees Modest Growth Amid Sector Concerns
The cutting tool industry has seen a 4.9% increase in orders from June 2025, and a 9.8% rise from July 2024. The market, a leading indicator of U.S. manufacturing activity, is expected to remain relatively stable with a positive bias for the coming months.
Jack Burley, chairman of AMT's Cutting Tool Product Group, attributed this modest growth to shops having orders to fill. However, the outlook is not without concerns. Eli Lustgarten, president of ESL Consultants, expects a relatively flat outlook for the sector, with areas of concern including automotive, construction, and agricultural companies due to sales and tariff issues.
Shipments of cutting tools totaled $216.2 million in July 2025. Year-to-date shipments stood at $1.45 billion, down 2.9% from the same period in 2024. The aerospace sector is expected to drive end-market demand, while the automotive sector faces supply chain issues and reduced EV incentives. The heavy equipment market is expected to remain flat, with possible positive trends in the construction sector. Meanwhile, the outlook for the agricultural sector continues to deteriorate due to record yields, rising carryovers, and declining prices.
The cutting tool market, as indicated by the Cutting Tool Market Report jointly compiled by AMT and USCTI, shows modest growth driven by existing orders. Despite concerns in certain sectors, the market is expected to remain relatively stable with a positive bias for the second half of 2025 and into 2026.
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