McLean, Va. (December 9, 2024) — Orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders (USMTO) report published by AMT – The Association For Manufacturing Technology, totaled $385 million in October 2024. These orders for metalworking machinery decreased 14.5% from September 2024 and were 5.5% behind October 2023 orders. Year-to-date orders reached $3.74 billion, a decline of 7.5% compared to the first 10 months of 2023.
Although orders of manufacturing technology are still on a longer-term downward trend, October 2024 orders were 3% above the average value of all Octobers. This downward trend represents a normalization of order activity after a frenzied buying cycle caused by manufacturers grappling with increasing demand and the supply bottlenecks of the COVID pandemic.
After significantly increasing purchases in September 2024, contract machine shops, the largest customer of manufacturing technology, pulled back orders in October by nearly 30%. This was due to several factors. The U.S. presidential election likely introduced enough uncertainty that businesses were hesitant to make additional investments. The Boeing machinists strike, which lasted through all of October 2024, also likely freed capacity in shops that tend to serve the aerospace sector.
Unlike contract machine shops, manufacturers of aerospace products and parts increased orders of manufacturing technology to the highest level of 2024 in October. Additionally, average order value increased to the highest level since January 2022. This indicates that, much like the UAW strike in 2023, aerospace manufacturers used the downtime to replace and expand the technology used on production lines.
In the first full month after the Federal Reserve began reducing interest rates from a peak of 5.5%, manufacturing technology orders fell below the average order value of the previous expansionary period. This is in contrast to the last experience of a soft landing in 1995, when order values remained above the average between the end of the last recession and the first rate cut for at least nine months following the initial cut. Last week’s strong jobs report showed growth in the manufacturing sector, driven largely by producers of durable goods. A good early indicator of the path ahead will come with the Federal Reserve meeting on Dec. 18 and the next publication of their economic projections.
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On Jan. 24, AMT will host the 2025 Winter Economic Forum, featuring the latest Oxford Economics forecast on the economy and manufacturing technology orders. AMT will also recap IMTS 2024 and share important can’t-miss industry insights to prepare manufacturers for the new year. Register for free to attend in person in Cincinnati, Ohio, or virtually.
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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. 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, Virginia, 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. AMTonline.org.
IMTS – The International Manufacturing Technology Show is where the creators, builders, sellers, and drivers of manufacturing technology come to connect and be inspired. Attendees discover advanced manufacturing solutions that include innovations in CNC machining, automation, robotics, additive, software, inspection, and transformative digital technologies that drive our future forward. Powered by AMT – The Association For Manufacturing Technology, IMTS is the largest manufacturing technology show and marketplace in the Western Hemisphere. With more than 1.2 million square feet of exhibit space, the show attracts visitors from more than 110 countries. IMTS 2024 had 89,020 registrants, featured 1,737 exhibiting companies, and included a Student Summit that attracted 14,713 visitors. Be the change at IMTS 2026, Sept. 14-20, 2026. Inspiring the Extraordinary. IMTS.com.
