Manufacturing technology orders see ongoing slide from 2022

Orders for manufacturing technology, as measured by the U.S. Manufacturing Technology Orders (USMTO) Report, rose 4% from September to October to $409.7 million. However, through October 2023, they remain 13.5% below the first 10 months of 2022, reaching a a total of $4.05 billion.

Source: AMT – The Association For Manufacturing Technology

The USMTO Report, compiled by AMT – The Association For Manufacturing Technology, provides regional and national U.S. orders data of domestic and imported machine tools and related equipment. Analysis of manufacturing technology orders provides a leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.

Despite a six-week United Auto Worker’s strike throughout much of October shuttering production lines, the report noted automotive manufacturers continued to invest in manufacturing technology. Investments by automotive transmission manufacturers rose earlier in the year, but October was the second straight month in which manufacturers of other automotive components increased their investment.

Source: AMT – The Association For Manufacturing Technology

Job shops decreased the value of orders in October while increasing the number of units purchased, indicating they are purchasing machinery to increase capacity. Conversely, OEMs have increased order value at a faster pace than units, suggesting they are purchasing machinery for a designated purpose, the report indicated.

Manufacturers of engines, turbines and other power transmission equipment have continued a higher rate of orders, growing 8% over 2022. “This sector is benefiting from recent government investment, pushing orders of manufacturing technology to levels not seen since the industry was transitioning from coal-fired plants to natural gas,” the report stated.

The USMTO Report went on to cite conditions likely to influence ongoing manufacturing technology investment, including the positive November 2023 jobs report – including 28,000 jobs added in the manufacturing sector – improved consumer confidence and the expectation that we may have seen that last of federal interest rates increases for the year.