703-827-5277 or akuchinski@AMTonline.org
U.S. Manufacturing Technology Orders Increased in March 2020, Yet Deceleration Begins in Second Half of Month
McLean, Va. (May 11, 2020) – U.S. manufacturing technology orders increased 8% in March from the previous month to $301.2 million, according to the latest U.S. Manufacturing Technology Orders report published by AMT – The Association For Manufacturing Technology. New orders were 29.3% lower than in March 2019. Total orders through March 2020 were $863 million, 26.1% lower than YTD 2019 orders.
“We were anticipating an increase in orders from February since many companies’ fiscal years end in March, which typically drives up orders,” said Douglas K. Woods, president of AMT. “Yet while orders in the first half of March were fairly robust, order volume decelerated rapidly in the second half of the month as stay-at-home orders were put into place
“Going forward, we expect April and May orders to be significantly impacted by the inability of salespeople to meet with new prospects and visit customers’ facilities. While videoconferencing is productive in some situations, it cannot effectively substitute for face-to-face meetings with customers at their facilities.
“This drop-off in quotations is most visible in the contracting machining sector, which represents nearly a third of the manufacturing technology customer base and is seeing a 70-80% drop in new quotation activity. If this rate of decline is representative of other key sectors, then much of the industry can expect a large drop-off in order volumes in the second and third quarters. Bucking the downward trend are defense, space, and medical equipment – and there are encouraging signs that automotive is slowing scaling back up as well.”
# # #
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