Cutlery and Handtool Manufacturers NAICS 3322

Nov 18, 2025 - AI For Metal Fabrication

• The integration of AI into CAD/CAM, ERP (enterprise resource planning), and other manufacturing systems is reshaping the metal fabrication industry, The Fabricator reports. By embedding AI into enterprise software, manufacturers can automate repetitive tasks, improve data visibility, and make smarter, faster decisions, such as optimizing production schedules, refining supply-chain planning, and shortening lead times. This shift allows manufacturers to increase throughput and responsiveness while using the same assets. At the same time, success depends on clean, structured data and tightly integrated systems. For manufacturers who invest in AI-enabled ERP and design tools, the benefits include lowered operational costs, enhanced agility and competitive advantage, while laggards that cling to outdated, siloed systems may find themselves less efficient and less capable of adapting to evolving markets.
• The US construction industry, a key end-user of knives and handtools, is facing a labor crisis as stepped-up immigration enforcement disrupts worksites nationwide, MSN reported in November. Builders, who were already facing a shortage of skilled workers, say aggressive immigration enforcement at construction sites carried out by Immigration and Customs Enforcement (ICE) have exacerbated the problem. Indeed, one in three construction businesses report being affected by ICE actions, threatening project timelines and economic growth, according to MSN. The uncertainty caused by the ICE raids and worker shortage is causing some construction firms to shrink their crews or stop projects. According to the 2025 Workforce Survey published by the Associated General Contractors of America and the National Center for Construction Education and Research, 88% of firms have openings for key positions, 92% are having trouble filling positions, and 45% report project delays due to the worker shortage.

• Makers of stainless steel cutlery and handtools are facing higher input costs due to tariffs on the metal. According to new federal data analyzed by Associated Builders and Contractors (ABC), iron and steel prices are driving up construction costs. Over the past 12 months the producer price index for iron and steel has risen 9.2%, BLS data shows. Alongside iron and steel, copper wire and cable prices jumped 13.8% in the past 12 months. "Prices rose at an especially rapid pace in some of the categories most affected by tariffs,” said the ABC's chief economist Ayan Basu. The upward trend follows President Trump's decision earlier this summer to double tariffs on imported steel and aluminum from 25% to 50%. Manufacturers of architectural and structural metals face rising costs for metals and potential falling demand for their products as rising input costs may cause delays or cancellations of construction projects.
• Producer prices for cutlery and handtool manufacturers hit a new high in June, up 6% compared to a year ago, after rising 2.9% in the previous June-versus-June annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices have been rising steadily since mid-2021, with increases accelerating in recent months. Employment by cutlery and handtool manufacturers barely grew in July, up only 0.3% year over year, while average wages at fabricated metal manufacturers rose 6.8% over the same period to a new high of $28.42 per hour, BLS data show.