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U.S. Manufacturing Technology Orders Increased in February 2020: Covid-19 Pandemic Upends U.S. Economy and Manufacturing Industry
McLean, Va. (April 13, 2020) – U.S. manufacturing technology orders increased 3 percent in February from the previous month to $277.9 million, according to the latest U.S. Manufacturing Technology Orders report published by AMT – The Association For Manufacturing Technology. New orders were 16.5 percent lower than in February 2019. Total orders through February 2020 are $547 million, 26.2 percent lower than YTD 2019 orders.
“Before the pandemic hit, we had predicted lower manufacturing technology orders in the first half of the year with a pickup in the second half,” said Douglas K. Woods, president of AMT. “Clearly the downturn will be much more severe than could have been anticipated. While we still expect a rebound later this year, this recovery is likely to take an extended period of time to get to pre-crisis levels as the global economy, the U.S. economy, and the manufacturing industry slowly regain their momentum.”
“While all industries are being affected, and some more than others, with cancellations of orders or postponement of expected orders, due to long lead times of some industrial equipment and urgent retooling to meet crisis-related production some pockets of investment are continuing. As we progress out of this crisis the manufacturing technology industry will be critical in scaling up the products and equipment our economy needs going forward such as air filtration equipment, laboratory and medical equipment, automation, pharmaceuticals, PPE, defense and other products. These opportunities will create momentum in the manufacturing technology industry well into 2021 and beyond supplying both domestic and global needs.”
“The pandemic has clearly exposed the risks of excessive reliance on non-diversified, global supply chains to produce the necessary products and equipment in a time of crisis—be it an outbreak of a disease, an economic crisis, or a large military conflict. Centralized supply chains in foreign countries have proved to be detrimental to the ability of the U.S. to effectively react to a global crisis. Revitalizing America’s manufacturing sector would provide the U.S. with “self-manufacturing-sufficient” supply chains to support our industrial base in a crisis.”
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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.
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