Featured Image

The State of the MT Industry

At the recent IMTS Workshop in Chicago, AMT President Doug Woods presented the economic outlook for the manufacturing technology industry, and the news is promising. Explore opportunities for industry growth, the forecast for reshoring, and more.
Mar 17, 2022

At the recent IMTS Workshop in Chicago, AMT President Doug Woods presented the economic outlook for the manufacturing technology industry. With the 2021 production numbers in, the industry has come off a record year, and the forecast bodes well for 2022. Here are the highlights.

The Economy

  • U.S. machine tool orders (USMTO) were up 52% in 2021 and initial forecasts are for slight increases in 2022

  • The GDP is predicted to grow at 4% in 2022

  • CAPEX is predicted to grow 7.7% in 2022 

  • And 15 of 18 manufacturing sectors are forecasting revenue improvement in 2022 – and this is coming from a very good year! 

There are a few potential derailers. Global supply chain issues are still causing pain and it’s not clear when things will get back to normal. Both interest rates and inflation are impacting the economy negatively, putting a damper on how much manufacturers can spend or invest. Lastly, geopolitical tensions including unrest in Ukraine, Taiwan, and the Middle East may worsen, which may negatively affect the global economy.

The Silver Lining North American reshoring and nearshoring represent the upside to the supply chain challenges of the past two years. Foreign Direct Investment (FDI) in the United States has grown substantially and has increased domestic manufacture of many critical products – spurring critical American investments in semiconductors and batteries. 

The MT Landscape Several technologies continue to change the manufacturing landscape: artificial intelligence, advanced automation, additive manufacturing, and augmented reality – and that is just the As! 

Enterprising Entrepreneurs Novel ideas for platforms and business models continue to launch, including:

  • Manufacturing-as-a-service (MaaS)

  • Manufacturing-on-demand (MoD)

  • Equipment-as-a-service (EaaS)

Venture capitalists and other stakeholders have made heavy investments in the manufacturing technology sector, showing renewed interest in the transformative technologies fueling growth in the advanced manufacturing industry. 

Solutions Over Hype Woods cautions that some of us may be experiencing Industry 4.0 buzzword exhaustion. While these exciting new technologies are cool to talk about, our industry needs to keep in mind the value in the technology is in solving challenges for the end user. A focus on the technology application rather than the latest trend will be key in creating value for manufacturers.

Kathy Keyes Webster
Managing Editor – Content
Recent intelligence News
Former AMT Chairman Jim Gleason passed away on June 17, 2022, but his impact on the manufacturing industry lives on.
AMT is working with Sompo International, a global provider of property and casualty insurance. Through this alliance, Sompo International will share their thought leadership through articles in AMT media and speaking slots at AMT member events.
If you create a company that promotes driving forward and learning from failure as integral parts of its way of work, you are likely to have a company that is going to attract those people you need.
AMT – The Association For Manufacturing Technology has one focus: supporting manufacturers. Get the support you need to make 2022 a happy – and successful – year.
Discover the power of AMT. As the premier trade association representing the U.S. manufacturing technology industry, AMT delivers innovation, impact, and vision for its 600 members and the broader industry. Power up with AMT!
Similar News
By Mark Killion, CFA | Sep 26, 2022

To help support better economic analysis and sales forecasting for manufacturing technology companies, AMT – The Association For Manufacturing Technology is gathering economists to share data and insights at MTForecast, held Oct. 12-14 in St. Louis.

4 min
By Stephen LaMarca | Sep 17, 2022

‘Hands-off’ training. Arm institute calls for AI survey participants. Forget the G-Wagon and the Supra – Magna wants to make delivery robots now! Amazon's plan to purchase Cloostermans. But seriously.

5 min
By Stephen LaMarca | Sep 17, 2022

Georgia tech awarded $65 million in government cheese. Computers do art better. American rescue plan regional challenge winners. Military industry automation. McLaren F1 testing with AM.

5 min