2019 Starts with Second-Largest January for
Manufacturing Technology Orders in Two Decades
McLean, Va., (March 11, 2019) - U.S. Manufacturing Technology Orders for January totaled $396 million, marking the second strongest January in the history of the USMTO program. Orders declined 10.5 percent from December, but at half the average decline in January over December levels since 1998. January 2019 orders grew five percent over January 2018 – an indicator of continued expansion in the market into 2019 after an annual expansion of 19 percent in 2018.
“January was one of the top two starts to a year in over 22 years of USMTO reporting, signaling that the current expansion is not over,” said Douglas K. Woods, President of AMT – The Association For Manufacturing Technology. “However, the markets in Asia and Europe began contracting in the last third of 2018 which is likely to increase supply in the U.S. The silver lining is that global markets should rebound about the time the U.S. market is expected to begin a short-lived contraction.”
Like the general market for manufacturing technology, most industrial sectors posted double-digit dips in January relative to December 2018. Softer markets in the aerospace, industrial machinery and automotive sectors, which were down by a third or more, led the downward trend. On the plus side, there were several significant exceptions to the general market’s weakness in January. Dramatic order growth in the rail, ship and other transportation sector, as well as an increase that was multiples of December order levels in the household and major appliance industry, helped to keep January levels from sliding further.
The Southeast and Southcentral regions were able to out-perform the national market performance as each region posted growth of more than 15 percent in January. The order expansion in the Southeast was driven by strong orders from the medical equipment and power generation industries as well as continued strength in aerospace capital spending. Like the Southeast, the Southcentral region posted a large gain in orders from the power generation sector as well as order growth from customers in the construction machinery sector. The West region posted the largest percentage decline falling by more than a third of its December order levels.
The February Manufacturing ISM® Report On Business® registered a Purchasing Manager’s Index of 54.2 percent, indicating an expanding manufacturing sector albeit at a slower pace. Capacity Utilization dipped slightly in January to 76.4 percent off a post-recession high in the previous month. Light vehicles sales clocked in at 16.6 million units-per-year for January, a decrease from the December reading of 17.5 million. This drop is the largest month-over-month decrease since April to May 2011. Consumer sentiment rebounded 2.6 percentage points to 93.8 percent in February.
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The United States Manufacturing Technology Orders (USMTO) report
These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTO program. This 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 reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.
AMT – The Association For Manufacturing Technology
AMT represents U.S.-based builders and distributors of manufacturing technology – the advanced machinery, devices, and digital equipment that U.S. manufacturing relies on to be productive, innovative, and competitive. Located in McLean, VA, near the nation’s capital, AMT acts as the industry’s voice to speed the pace of innovation, increase global competitiveness and develop manufacturing’s advanced workforce of tomorrow. With extensive expertise in industry data and intelligence, as well as a full complement of international business operations, AMT offers its members an unparalleled level of support. AMT also produces IMTS – The International Manufacturing Technology Show, the premier manufacturing technology event in North America. www.amtonline.org
IMTS – International Manufacturing Technology Show
IMTS – International Manufacturing Technology Show The largest and longest running manufacturing technology trade show in the United States is held every other year at McCormick Place in Chicago, Ill. IMTS 2020 will run Sept. 14-19. IMTS is ranked among the largest trade shows in the world. Recognized as one of the world’s preeminent stages for introducing and selling manufacturing equipment and technology, IMTS attracts visitors from every level of industry and more than 117 countries. IMTS 2018 was the largest in number of registrations (129,415), net square feet of exhibit space (1,424,232 sq. ft.), booths (2,123) and exhibiting companies (2,563). IMTS is owned and managed by AMT-The Association For Manufacturing Technology. www.IMTS.com
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