The United States remains a manufacturing powerhouse in many sectors, contributing roughly $2.90 trillion to the U.S. economy and accounting for about 9.7 % of total U.S. output in early 2025. NAM
Yet when it comes to knife manufacturing, the domestic footprint is disproportionately small—even though millions of knives are sold in the U.S. annually. According to industry data, production of knives, scissors, and blades in the U.S. was approximately 86 million units in 2024, representing a moderate 3.1 % increase from the prior year. IndexBox
That output equated to only about $469 million in manufacturing value, a modest figure compared to the multi‑billion‑dollar overall U.S. knife market projected to exceed $2 billion in revenue in 2025. Business Research Insights This discrepancy reveals the structural pressures facing domestic makers—and why so few choose the path of true American handicraft.
In this deep dive, I’ll walk through the hard facts around cost structures, business survival, global competition, materials sourcing, and market forces, showing why maintaining 100 % U.S.‑sourced knives isn’t just rare, it’s a strategic stand.
Manufacturing in America: A Shrinking Share of the Economy
Although the U.S. remains strong, its share of global manufacturing output continues to fall. As of 2025, the United States accounted for approximately 12.8 % of global manufacturing production, compared to China’s dominant 28.4 % share. The Global Statistics
That decline matters because knife manufacturing doesn’t exist in a vacuum: it’s part of broader manufacturing dynamics. When the U.S. produces a smaller slice of global industry overall, specialized, low‑volume sectors like knives feel that squeeze especially hard.
Manufacturing jobs and firms have been reshaped by decades of globalization, automation, and pricing competition—forces that make artisanal domestic production expensive relative to high‑volume overseas factories.
The Cost Barrier Is Real—and Significant
Domestic knife production faces two major cost challenges:
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Labor and Overhead: U.S. manufacturing labor costs and compliance standards are significantly higher than in many competitive markets. While precise industry‑wide hourly costs vary by region and skill level, U.S. manufacturing labor is consistently more expensive than in Southeast Asia or China due to wages, healthcare, and regulations.
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Material Sourcing: Even the base materials that go into a knife can be expensive domestically. For example, the U.S. produced over 79 million net tons of crude steel in 2024, ranking third globally—but faces high operational costs and imported raw inputs. Wikipedia
Despite able domestic capabilities, about 25 % of the steel used in the United States is imported due to price and capacity considerations. Wikipedia
That’s a hidden cost too many people overlook—because even if a knife is assembled in the U.S., the steel and components might not be truly domestic. At Shed Knives, we source everything from U.S. manufacturers, which raises cost but ensures traceability and performance.
Small Business Survival: The Odds Are Steep
The harsh economics of knife manufacturing are reflected in broader small‑business survival statistics.
According to the U.S. Bureau of Labor Statistics, only about 51 % of new businesses survive to their fifth year, and a little over 34 % survive a full decade. Salt Creative
That means approximately half of all new companies close within five years—and many of those are in sectors with lower barriers to entry than precision manufacturing. Specialized makers, often with limited capital and niche markets, face steeper odds.
These numbers underscore how rare it is for a deeply technical manufacturing business to survive long enough to build a reputation, tooling, and disciplined production processes.
Global Competitive Pressure: China’s Scale Advantage
While U.S. manufacturers produce tens of millions of knives, China operates on a completely different scale.
In 2024:
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China produced about 2.9 billion units of knives, scissors, and blades—nearly 34 times the U.S. output. IndexBox
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The U.S. imported approximately $485.7 million worth of knives with cutting blades from China in 2024. Trading Economics
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Chinese production is forecast to reach 2.1 billion units by 2035, expanding at a +12.2 % CAGR. IndexBox
This scale advantage matters: China’s output dwarfs American production not only because of labor costs but because its factories often integrate raw materials, machining, and finishing in close proximity—lowering lead times and prices in ways impossible in most U.S. regions.
Put simply: if demand in the U.S. markets can be met with low‑cost imports, few buyers or distributors incentivize the slower, costlier domestic path—unless the value proposition justifies it.
The U.S. Knife Market Is Growing—but Most Are Not Made Locally
At the same time global knife demand grows toward $7.6 billion by 2033 with a CAGR above 6 %, the U.S. share of that remains significant but mostly served by imports or foreign‑made production for U.S. brands. Market.us
Domestic production of 86 million units pales next to U.S. demand and imports, and the domestic value of production—under $500 million in 2024—signals how few U.S. makers operate at scale. IndexBox
This reinforces a critical point: the barrier is not demand, it’s cost, execution discipline, and supply chains.
Why Some Makers Outsource Designs Overseas
Over the years, I’ve watched (and turned down) offers from established brands that wanted my knife designs—not for U.S. production, but so they could have them manufactured overseas. The proposition was simple: give us the intellectual property, we’ll handle cheap mass production, and you keep designing.
Tempting? Maybe on paper. But concessions like that remove quality control, dilute brand integrity, and compromise the country of origin claim. They shift knife makers from craftsmen to white‑label designers of products ultimately made elsewhere.
Companies do it because it significantly reduces:
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tooling/material costs
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labor costs
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production cycle times
and increases profit margins—but at the expense of domestic credibility and craftsmanship.
Why American Consumers Often Choose Cheaper Knives
A major reason domestic knife manufacturing shrank is consumer price sensitivity.
Imported knives often sell at prices 30 %–70 % lower than U.S.‑made equivalents because overseas producers benefit from:
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lower labor rates
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massive economies of scale
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integrated supply chains
This pushes U.S. consumers toward low‑cost options unless they specifically value performance, durability, and provenance.
That’s why at Shed Knives we emphasize every knife is 100 % U.S. materials and 100 % U.S. manufacturing. We’re not just assembling imported parts—we are preserving a manufacturing tradition and delivering a product with performance that matches its full domestic cost.
Quality Standards: Why It Matters
One subtle factor in domestic survival is quality discipline.
In far too many small manufacturing operations—especially overseas—production tolerances and QC can vary widely. The artisan knife world knows:
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steels must be heat‑treated with precision
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tolerances must be exact
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handle ergonomics and balance must be consistent
At Shed Knives, that’s not optional. It’s our standard. We don’t take shortcuts. We inspect, adjust, and refine. That disciplined mindset, rooted in values of excellence and accountability, is a key reason a truly U.S.‑made knife is exceptional.
Strategic Importance: Independence and National Resilience
Domestic manufacturing isn’t just about economics—it’s about control and independence.
By owning every step of the production process in the United States and sourcing all materials domestically, we protect our supply chain from:
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geopolitical disruptions
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tariff shocks
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foreign policy shifts
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currency volatility
If overseas production faces raw material restrictions or tariff hikes, many brands simply cannot react because they lack control. Shed Knives doesn’t face that vulnerability.
Final Thoughts: Scarcity Creates Value
There simply aren’t many American knife manufacturers left because:
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U.S. manufacturing contributes a smaller share of global output today (12.8 %) than in decades past. The Global Statistics
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Nearly half of all new U.S. businesses fail within five years. Salt Creative
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Global knife production outpaces U.S. output by multiples of 30× or more. IndexBox
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Imported knives account for hundreds of millions in U.S. imports annually. Trading Economics
Yet that scarcity is a market opportunity for brands committed to excellence.
At Shed Knives, we chose the harder path. Not because it’s easy—but because quality, integrity, and craftsmanship matter. When you hold a knife that’s truly made in America with materials that are truly American, you aren’t just buying a tool—you’re investing in a legacy of performance and pride.
If you want a knife that’s built with discipline, precision, and a values‑driven commitment to excellence, Shed Knives stands apart—because we do it right, every time.
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Explore the 2026 Skur here: https://shedknives.com/products/2026-skur
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About The Author:
Jack Billings is the 21 year old CEO and Founder of Shed Knives, a rising manufacturer of high-quality fixed blade bushcraft knives. With over 5 years of experience as a knife maker, he has developed a reputation for crafting durable, reliable knives that are designed for outdoor enthusiasts and bushcrafters alike. Jack started making knives at the age of 13 and has been refining his craft ever since.
In addition to his expertise in knife making, Jack has a High School Degree from POLYTECH High School, where he studied Automotive Technology and obtained his ASE Certification. He is also a content creator for Shed Knives and has reached the eyes of over 1,000,000 people on Shed Knives platforms across the world through his work.
When he's not working on knives, Jack enjoys exploring the outdoors and has a passion for bushcraft. He also has a passion for the automotive world and enjoys learning about new technologies and advancements. Additionally, he has a great interest in language and is studying Spanish, German, Russian, and Arabic.
Jack's personal mission is to constantly improve himself, his products, and his processes in order to stay ahead of the rapidly changing interests of the knife industry and to surpass the competition. He takes great pride in American manufacturing and is committed to contributing to the growth of the world knife industry through his work.
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