U.S. Cutting Tool Orders Dip 1.8% in May Amidst Global Slowdown
Orders for cutting tools in the U.S. have taken a dip, declining by 1.8% in May 2025 compared to the same month last year, and by 3.9% compared to June 2024. This downturn comes amidst a broader slowdown, with year-to-date shipments totaling $1.23 billion, a 4.9% decrease from the same period in 2024.
The Cutting Tool Market Report, a key indicator of U.S. manufacturing activity, shows shipments of cutting tools reached $204.1 million in June 2025. Experts attribute this decline to various factors. Steve Boyer, president of USCTI, cited tariff uncertainty and increased raw material costs as primary reasons. Alan Richter, editor-at-large of Cutting Tool Engineering, pointed to a 43-month downward trend in shipments, also linked to tariff-related uncertainty.
On a global scale, China, the world's largest machinery manufacturer and a significant player in the CNC machine tool industry, has seen a substantial decrease in cutting tool consumption. This decline is part of a broader slowdown driven by China's 'Made in China 2025' modernization program.
The decline in cutting tool orders and shipments, both domestically and internationally, reflects ongoing challenges in the manufacturing sector. Tariff uncertainty and increased raw material costs are key factors driving this downturn, impacting both U.S. and global markets.
