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Despite Gains Over June, U.S. Manufacturing Technology Orders through July 11.7 Percent off July 2018 Totals
McLean, VA (September 9, 2019) – U.S. manufacturing technology orders totaled $383.7 million in July 2019, an increase of 7 percent over June 2019 but a fall of 5 percent from July 2018, according to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology. The total value of manufacturing technology ordered through July 2019 was $2.64 billion, a decrease of 12 percent from the 2018 year-to-date total of $2.98 billion.
“Our industry appreciated the good news that July orders out-paced June. The more interesting fact was that job shops accounted for nearly a third more of total orders than in 2018,” said Douglas K. Woods, President of the Association For Manufacturing Technology, ”Clearly, other larger manufacturers are putting off capex and addressing capacity needs by outsourcing production shortfalls with job shops. We suspect the impetus is the uncertainty with the current market and future economic conditions.”
Machine shops decreased orders over the previous month for the first time since April 2019. The government and defense sector led all other industries in month-over-month gains but only accounted for a small fraction of the total orders placed. The automotive sector increased orders by more than half, and orders from aerospace increased a fifth from June 2019.
The North Central – East region led in month-over-month growth, where orders increased nearly 30 percent, while the region with the largest total decline was the Southeast. The West and North Central – West also saw gains over June 2019. The Northeast saw a very modest 1 percent decline, and the South Central narrowly avoided a double-digit decline, at 9 percent.
Other indicators show contraction as well. The August 2019 ISM® Manufacturing Report On Business® reported the Purchasing Managers’ Index fell 2.1 percentage points to 49.1. This is the first time in nearly three years the index has fallen below 50, signaling contraction in the manufacturing space. Despite increased orders coming from the automotive sector, July lightweight vehicle sales fell or the second straight month to 16.8 million units on an annualized basis. Capacity utilization fell in July to 75.9 percent, the lowest reading since September 2017. The University of Michigan Index of Consumer Sentiment fell to 89.8 in August, with a third of consumers making a negative mention of tariffs without prompt. The 8.6 point decrease over July 2019 is the largest monthly decline in consumer sentiment since December 2012.
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The United States Manufacturing Technology Orders (USMTO) Report is 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. www.usmto.com
AMT – The Association For Manufacturing Technology represents U.S.-based providers 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 is 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