Featured Image

Modest Downturn Ahead, but Growth Expected for Some Sectors

Despite a mild recession next year, 2023 does offer opportunities for U.S. machine tools. Learn more from economist Mark Killion, a speaker at the recent MTForecast conference.
Nov 09, 2022

A mild recession in 2023 will nevertheless provide opportunities for more machine tool sales to durable goods manufacturers, according to Mark Killion, CFA, director of U.S. Industry at Oxford Economics, a leading economic advisory firm. Killion shared his outlook for U.S. machine tools at MTForecast, a recent conference sponsored by AMT – The Association For Manufacturing Technology.

“Every recession is painful, but this one will be less so than average for machine tool sales,” Killion said. “Companies need to be prepared for recovery after a short recession in order to take advantage of the growth and increase their market share.”

Killion’s forecast indicates that some industries with the greatest growth output in 2023 will include machine shops, semiconductors, automobiles, trucks, and utility vehicles. These areas are among the categories predicted to be least impacted by the recession and most likely to rebound quickly, offering opportunities for manufacturing technology companies.

“Although we continue to expect growth from traditional machine tool users such as aerospace and automotive, the future of manufacturing is in some of the faster-growing sectors such as electronics, communications, and medical equipment,” said Pat McGibbon, chief knowledge officer at AMT. “Strategically, it’s a good idea to diversify customer markets for the long term.”

Other longer-term trends supporting this positive outlook for U.S. manufacturing include the growing use of automation, the vehicle evolution to electric, lower-emission initiatives, infrastructure spending, government support of domestic semiconductor manufacturing, and supply chain reconfigurations.

To take advantage of these growth opportunities, Killion recommends using the recession period to adjust market targets to match trends, make investments to support new product mixes, and have a tactical marketing plan ready to execute during the recovery.

“It seems counterintuitive to make investments in the midst of a recession instead of saving, but that preparation may be necessary to gain the competitive advantage,” Killion added.

For more economic insights on manufacturing technology, peruse AMT’s Intelligence Products and plan to attend AMT’s 2023 MFG Meeting, April 26-28, in Phoenix, Arizona.

Kathy Keyes Webster
Managing Editor – Content
Recent intelligence News
As manufacturers lean more and more into automation, the only way to measure the success of their efforts is with … measurement. Investments in metrology, like other forms of automation, contribute to the overall efficiency ...
Manufacturing startups have a few things to consider before choosing an investment partner, according to experts in the recent webinar “Raising Venture Capital for Industrial Technology Businesses 101.”
Charting Where We Have Been and What May Lie Ahead.
If this were a movie, you might want to head for the exit. But sticking around – which may not be easy – can be rewarding.
Given the recent election, it seems timely to build upon some of this analysis by examining what effect, if any, elections may have on machinery orders, as measured by the U.S. Manufacturing Technology Orders Report published ...
Similar News
By Stephen LaMarca | Mar 24, 2023

Machine tending with cobots. ChatGPT’s reinforced position in manufacturing. Don’t bank on EVs just yet. Emerged technology. AddUp sends support to Ohio.

5 min
By Benjamin Moses | Mar 10, 2023

Innovation is driven by diversity. What does collaboration mean? Energy for wearable tech. ​Hole technology. Wake me up before you grow-grow.

5 min
By Stephen LaMarca | Mar 03, 2023

3D-printed metal FUEL valves. I want robots and automation. Renaissance man(ufacturing). Advanced metrology; still no turn signal. Ultrasonic holographic bioprinting.

5 min