Plasma is an effective means of cutting thin and thick materials alike. Hand held torches can usually cut up to 2 in (48 mm) thick steel plate, and stronger computer-controlled torches can pierce and cut steel up to 12 inches (300 mm) thick. Formerly, plasma cutters could only work on conductive materials, however new technologies allow the plasma ignition arc to be enclosed within the nozzle thus allowing the cutter to be used for non-conductive workpieces.

In the past decade plasma torch manufacturers have engineered new models with a smaller nozzle and a thinner plasma arc. This allows near laser quality on plasma cut edges. Several manufacturers have combined precision CNC control with these torches to allow fabricators to produce parts that require little or no finishing.

Plasma cutters have also been used in CNC (computer numerically controlled) machinery. Manufacturers build CNC cutting tables, some with the cutter built in to the table. The idea behind CNC tables is to allow a computer to control the torch head making clean sharp cuts. Modern CNC plasma equipment is capable of multi-axis cutting of thick material, allowing opportunities for complex welding seams on CNC welding equipment that is not possible otherwise. For thinner material cutting, plasma cutting is being progressively replaced by laser cutting, due mainly to the laser cutter's superior hole-cutting abilities.