Featured Image

MTForecast 2022 Provided Insights on Economy, Automotive Industry, and Interest Rates

Oct 19, 2022

Last week, AMT’s MTForecast 2022 included two days of presentations from experts in economic forecasting and market data to help manufacturing technology leaders make informed business decisions. Here are the top three takeaways:

1. The overall economic downturn will be short and have mixed impact on manufacturing.

In the next year, the recession will be mild and bottom out in the third quarter of 2023, followed by a sustainable rebound. Machine tool output is forecasted to be in line with 2019 levels. Due to the backlog of orders resulting from supply chain problems, 2023 machine tool orders will not increase but shipments will. Conversely, shipments and orders for machine tool accessories in 2023 will increase. Many customer industries will expand, such as aerospace and transportation, while accessory and mold investments will see greater volatility.

2. Disruptions in the auto industry are creating opportunities for parts manufacturers.

The automotive sector is a changing landscape as the big brands evaluate current methodologies and rethink their plans for the future. Electric vehicles have fewer parts and less complex manufacturing needs, but internal combustion engine vehicles will remain the dominant choice for the next few years. Once EV pricing and regulatory incentives are created, the tipping point for EV demand is expected around 2029.

3. Stagnant interest rates will reduce large capital purchases.

The Federal Reserve has provided good inflation rates for the last 40 years, allowing manufacturing in the United States to grow unabated with only modest recessions. Now the Fed is at a point where it cannot reduce interest rates until inflation begins to recede. This will have the greatest impact on large machine purchases. As the economy improves in the second half of 2023, these purchases will be slow to pick up again.

Check back at AMTonline.org to learn more about the outcomes from AMT’s MTForecast 2022.

Want future economic forecasts for strategic business planning?

Be sure to attend AMT’s MFG 2023 to gain industry insights, economic forecasting, and market data to help you plan strategically for your manufacturing technology business.

PicturePicture
Author
Pat McGibbon
Chief Knowledge Officer
Recent intelligence News
Today at the Jackson Hole Economic Symposium, the Federal Reserve gave the strongest indication to date that an interest rate cut is in the cards for September. Will manufacturers, who face a tight labor market, increase technology investments?
Oxford Economics now projects 2.9% growth in 2025 machine tool orders. See what’s driving the shift and get the full forecast at AMT’s MTForecast on Oct. 15-17 in Schaumburg.
With a robust history of data spanning nearly three decades, AMT’s statistical programs offer the most frequent, accurate, and applicable information on the manufacturing technology market.
The Federal Reserve held the federal funds rate steady at a target range of 4.25% to 4.5% for the fifth meeting in a row. For the first time since December 1993, two members of the committee dissented.
Today, the U.S. Bureau of Economic Analysis released their advanced estimates of gross domestic product (GDP) for the second quarter of 2025. Real GDP increased by 3.0% on an annualized basis, driven by a sharp reduction in imports.
Similar News
undefined
Intelligence
By Kevin Bowers | Aug 13, 2025

Companies in the manufacturing technology ecosystem use AMT’s custom market research to reduce risk, allocate resources, and accelerate growth.

6 min
undefined
Technology
By Brittany Henneberry | Aug 15, 2025

Human innovation at scale. GE is reshoring your refrigerator for $3B. But will they play Pokemon go up there? The sound of qubits. The center for digital twins wants you!

6 min
undefined
Intelligence
By AMT | Aug 21, 2025

Oxford Economics’ outlook turns up; Manufacturing Technology Series WEST comes to California; Successful marketing in 6 steps; and more.

6 min