May cutting tool orders down 2.3% from April
Shipments of cutting tools totaled $207.8 million in May, decreasing 2.3% from April and 5% from May 2024, according to the latest Cutting Tool Market Report compiled in a collaboration between AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI).
Year-to-date shipments totaled $1.03 billion, a drop of 5.1% from the same period in 2024.
“This summer, everyone is playing wait and see,” said Jack Burley, chairman of AMT’s cutting tool product group. “No one is investing in new production unless they have the security of a long-term project, such as for the defense industry, where cost is less important than delivery. Demand from the automotive market is weak, and the supply chain is getting squeezed by tariffs while vehicle manufacturers protect their bottom line. When we closely check the cutting tool data, unit cost appears to have increased slightly since January, most likely due to price increases. However, it’s too early to establish a trend with variables like surcharges to know the real costs. I don’t know who will win the wait-and-see game, but I hope it works out for everyone soon.”
Costikyan Jarvis, president of Jarvis Cutting Tools, said: “Sales of cutting tools through May reveal a controlled retreat rather than a collapse. The 5% drop in year-over-year numbers is consistent with the PMI falling below 50 from March through May. Taken in context with other financial metrics like capacity utilization, new vehicle sales, and civilian aircraft production, the second half of this year will likely see a rebound in demand. In short, the cutting tool market remains under pressure, but forward-looking industrial indicators hint that the worst of the pullback may be passing.”
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