- April 11, 2022
- Office – The Association for Manufacturing Technology
Strong consumer demand has been a key driver of much of the recent capital investment by manufacturers. Despite forecasts that spending would soon shift back to services, demand for finished goods remains at historic levels.
April 11, 2022 – Manufacturing technology orders totaled $479.3 million in February 2022, according to the latest US Manufacturing Technology Orders Report released by AMT – The Association For Manufacturing Technology. February 2022 orders increased 9% from January 2022 and 27% from February 2021. Year-to-date orders are just under $920 million, up 30% from the same period in 2021 and just 11% down from the same period in 1998, when orders hit a record and in just two months 1 exceeded one billion US dollars.
“The industry appears to be carrying the momentum of 2021 into the start of 2022, having its best start to the year in over two decades,” said Douglas K. Woods, President of AMT. “As we have learned over the past two years, and particularly the past few months, conditions can change quickly. We saw this in 2021, when order values performed only moderately well in the first few months of the year, but ending 2021 was the best year on record. This can cut either way so we may need to dampen excitement in early 2022 as local conditions change.”
Strong consumer demand has been a key driver of much of the recent capital investment by manufacturers. “Despite fading consumer sentiment and projections that spending would soon shift back to services, demand for finished goods remains at historic levels,” Woods said.
However, there are several headwinds standing in the way of growth, with inflation leading the way. Persistent inflation, exacerbated by geopolitical events, threatens to erode the consumer demand base that has sustained the manufacturing technology industry over the past 12 months.
“Many of the issues like labor shortages and supply chain issues that we’ve pointed out in recent months are still there, but inflation is becoming the biggest threat manufacturing has seen since the first shutdowns two years ago,” Woods said. “The aggressive stance of the Federal Reserve at their last meeting is really telling. Inflation needs to be controlled, but for interest rate-sensitive activities like investing, the drug can be a hard pill to swallow.”
About the USMTO report
The United States Manufacturing Technology Orders (USMTO) report is based on the aggregation of actual data reported by companies participating in the USMTO program. This report, compiled by AMT – The Association For Manufacturing Technology, provides US regional and national ordering data for domestic and imported machine tools and related equipment. Analysis of Manufacturing Technology Orders provides a reliable leading indicator of the economy as the manufacturing industry invests in metalworking capital equipment to increase capacity and improve productivity.
About the Association for Manufacturing Technology
AMT – The Association For Manufacturing Technology represents US-based providers of manufacturing technology – advanced machines, devices and digital equipment that US manufacturing depends on to be productive, innovative and competitive. Based in McLean, VA, near the nation’s capital, AMT acts as the industry voice to accelerate the pace of innovation, increase global competitiveness and develop tomorrow’s advanced manufacturing workforce. With deep expertise in industry data and intelligence, and a full range of international business operations, AMT offers its members an unparalleled level of support. AMT also hosts IMTS – The International Manufacturing Technology Show, the premier manufacturing technology event in North America.
About the International Manufacturing Technology Show
IMTS – International Manufacturing Technology Show – The largest and longest running manufacturing technology trade show in the United States is held biennially at McCormick Place in Chicago, Illinois. IMTS 2022 will take place from September 12th to 17th. The IMTS is one of the largest trade fairs in the world. Recognized as one of the world’s pre-eminent platforms for introducing and selling manufacturing equipment and technologies, and connecting the industry’s supply chain. IMTS attracts visitors from all sectors and more than 117 countries. IMTS 2018 was the largest in terms of number of registrations (129,415), net square feet of exhibition space (1,424,232 square feet), booths (2,123), and exhibiting companies (2,563). IMTS is owned and managed by AMT – The Association For Manufacturing Technology.
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