August 13, 2024 Amt – Manufacturing Technology Association News
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Manufacturing technology orders in June 2024 increased 4.3% as the y-o-y order gap narrowed
August 12, 2024 – Manufacturing technology orders, as measured by the United States Manufacturing Technology Orders (USMTO) report published by AMT (Association for Manufacturing Technology), totaled $402.3 million in June 2024. New orders for metalworking machinery increased 4.3% from May 2024 but were down 1.6% from June 2023. Year-to-date orders reached $2.2 billion, down 10.7% compared to the first half of 2023.
In June 2024, order intake maintained momentum with a strong increase in average value, but the number of orders received for the month dropped to 1,471 units, the lowest since July 2023. This divergence indicates that manufacturers are generally investing in more automated, task-specific solutions, a trend further supported by machine tool inflation, as measured by the Producer Price Index, remaining relatively flat over the past few months.
Orders from contract machine shops in June 2024 were down more than 10% from May 2024, both in units and value. Throughout the first half of the year, the value of these orders was the lowest since the first half of 2020, while unit orders declined further, reaching the lowest level since the first half of 2010. Primary metal producers also lowered their machine orders in 2024, falling to the lowest level since the first half of 2010 in both units and value. The World Steel Association reports that global steel production in the first half of 2024 was flat compared to the first half of 2023, and demand for machines in this sector is waning. One notable exception to this recent trend is the aerospace sector, where unit orders in the first half of 2024 increased to the highest number since the first half of 2018, but order values are about 2% below orders in the first half of 2022. Capacity utilization in the aerospace sector is reaching a post-COVID peak, confirming that these manufacturers need additional machinery to meet growing demand.
Manufacturing technology orders are down about 11% in the first half of 2024 compared to 2023, but the gap has narrowed over the past few months as optimistic expectations formed from anticipated interest rate cuts and strengthening consumer and business sentiment at the beginning of the year have not been met. While uncertainties remain surrounding the Federal Reserve's interest rate policy, the impending election, and rising geopolitical tensions, demand for manufacturing technology looks poised to recover for the remainder of 2024. We may see a further recovery at the International Manufacturing Technology Show IMTS 2024, taking place at Chicago's McCormick Place in September.
About USMTO
The United States Manufacturing Technology Orders (USMTO) report is based on the totals of actual data reported by companies participating in the USMTO program. Compiled by AMT (Association for Manufacturing Technology), the report provides U.S. regional and national orders data for domestic and imported machine tools and related equipment. Analysis of manufacturing technology orders is a reliable leading economic indicator as manufacturers invest in capital metalworking equipment to increase capacity and improve productivity.
About AMT
AMT (Association for Manufacturing Technology) is the association representing US-based manufacturing technology providers. Manufacturing technology refers to the advanced machines, devices and digital equipment that US manufacturing relies on to increase productivity, innovation and competitiveness. Based near the nation's capital in McLean, Virginia, AMT is the voice of the industry to accelerate the pace of innovation, improve global competitiveness and develop tomorrow's advanced manufacturing workforce. With extensive expertise in industry data and intelligence and a full complement of international business operations, AMT provides an unparalleled level of support to its members. AMT also hosts IMTS (International Manufacturing Technology Show), the largest manufacturing technology event in North America.
About IMTS
IMTS – International Manufacturing Technology Show is where creators, builders, sellers and drivers of manufacturing technology meet, engage and be inspired. Attendees will discover advanced manufacturing solutions including CNC machining, automation, robotics, additive manufacturing, software, inspection and transformational digital technology innovations that will drive the future. Organized by AMT – The Association for Manufacturing Technology, IMTS is the largest manufacturing technology show and marketplace in the Western Hemisphere. Boasting over 1.2 million square feet of exhibit space, the show attracts visitors from over 110 countries. IMTS 2022 had 86,307 registrants, 1,816 exhibiting companies and over 7,600 people attending educational events, including a student summit to introduce manufacturing to the next generation. Make a difference at IMTS 2024, September 9-14, 2024.
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