Tool holders and tool presetters are important components of CNC (Computer Numerical Controlled) machining. CNC machining requires a number of parts that must be assembled correctly if you are to produce accurate items. These parts include ER collets, which are the most widely used clamping system in machining, toolposts, which are parts of a lathe that may hold the tool bit or the tool holder, tool presetters, tool holders, and the tool itself. Tool holders, as their name suggests, hold the CNC machining tool, whether it is a drill bit, a boring tool, a form tool, or some other specialized product. A form tool is like a template for the part that you are looking to produce, and it makes the production quicker and easier. A tool holder is categorized according to which tool will be inserted, and they come in different shapes and sizes. For example, a company that manufactures vehicle parts will probably need a different size and shape of tool holder than a company that manufactures microchips. Tool holders are an integral part of the CNC machining industry, and you must use care in choosing the correct kind that you need.