The U.S. Manufacturing Technology Orders report for April 2016 showed a 27.5 percent decrease in orders compared to March, and a 17 percent decline in orders year-to-date compared to the same point in 2015. AMT VP – Strategic Analytics Pat McGibbon says this was expected, and orders will remain thin through the summer.
One reason for the downturn is the falling energy market as well as the dwindling agricultural, off-road and highway construction industries, which make up about a third of the overall market. A larger portion of the market (40-45 percent) is automotive and aerospace, which continues to be strong, but is not actively expanding. Some industries are growing, such as consumer electronics, firearms, and medical, but those represent only 12 percent of the overall market, and no matter how much they expand, they cannot offset the decline in the other areas.
The market for manufacturing technology orders is likely to remain flat through summer, but orders should turn upward in September, just about the time IMTS – The International Manufacturing Technology Show 2016 opens. The end of 2016 should finish strong, though overall still lower than 2015, with a robust 2017 anticipated for manufacturing.
If you would like more insight into economic conditions for the manufacturing technology market, join AMT for the 2016 Summer Economic Update Webinar, July 21, 11:00 a.m. to 12:00 p.m.
Read the full press release here.