Featured Image

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

Read the top three takeaways from last week’s AMT event, MTForecast 2022, which featured economic forecasting and market data to help you make informed decisions for your manufacturing technology business.
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
Get answers from leading economists who provide financial outlooks for manufacturing. Pick up even more details about changing economic factors and their impacts at AMT’s MTForecast 2023 conference in October.
Get insider information about growth opportunities in aerospace, machine shops, and additive manufacturing from leading industry experts and other growth markets in this article at AMT’s MTForecast 2023 conference.
The MTForecast conference gives manufacturing leaders the industry insights, economic forecasts, and marketing data for they need to make smart business decisions.
In the past eight weeks, a lot has happened: a hawkish pause from the Federal Reserve, two strong jobs reports, and much more. Catch up on what’s happened by registering for AMT’s Summer Economic Outlook Webinar on Thursday, August 3 at 1:00 p.m. EDT
Additive is not a new process, but since it has begun to be used more widely in industrial settings, the one thing the technology cannot seem to manufacture is a source of reliable, consistent, and publicly available statistics on the size of the U.S. ...
Similar News
undefined
International
By Conchi Aranguren | Nov 22, 2023

Europe sees continuous growth but with reduced momentum given the challenges on the economic and political fronts. Recent trade show turnout was positive, but how far is Europe from a sharper recovery? For more industry intel and other tidbits, read on.

5 min
undefined
Intelligence
By Christopher Chidzik | Nov 16, 2023

August 2023 U.S. cutting tool consumption totaled $219.2 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology.

4 min
undefined
Intelligence
By Mark Huber | Nov 10, 2023

Missed AMT’s MTForecast? Here’s some insight on the double-digit growth rate of additive manufacturing (AM) and surprising shifts from AMT Analyst Mark Huber.

5 min