CAUTIOUS OPTIMISM: MANUFACTURING TECHNOLOGY ORDERS UP 104 PERCENT

The machine tool business remains strong, but the rest of 2011 is being viewed with cautious optimism, given the weakness in parts of the economy and the Dow’s recent plunge.

June U.S. manufacturing technology orders totaled $459.39 million according to AMT – The Association For Manufacturing Technology (McLean, VA) and AMTDA, the American Machine Tool Distributors’ Association (Rockville, MD). This total, as reported by companies participating in the USMTO program, was up 15.3 percent from May and up 91.7 percent when compared with the total of $239.68 million reported for June 2010.

With a year-to-date total of $2,453.78 million, 2011 is up 103.9 percent compared with 2010. These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTO program. “At this pace, the industry would post orders equal to all of 2010 by the end of August,” said Douglas K. Woods, the president of AMT. “Still, industry leaders view the rest of 2011 with cautious optimism given the weakness in parts of the economy, illustrated by the Dow’s plunge at the beginning of August. We expect a bump in orders related to customers taking advantage of the current Bonus Depreciation rate before it is reduced in 2012.”

The United States Manufacturing Technology Orders (USMTO) report, jointly compiled by the two trade associations representing the production and distribution of 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.

U.S. manufacturing technology orders are also reported on a regional basis for five geographic breakdowns of the United States:

Northeast Region
At $61.82 million, June manufacturing technology orders in the Northeast Region were down 2.9 percent when compared with the $63.68 million total for May but up 18.3 percent when compared with June a year ago. The year-to-date total of $367.33 million is 72.1 percent more than the comparable figure for 2010.

Southern Region
June manufacturing technology orders in the Southern Region totaled $65.77 million, 18.5 percent more than May’s $55.49 million and 94.2 percent more than the June 2010 total. With a year-to-date total of $306.30 million, 2011 is up 64.0 percent when compared with 2010 at the same time.

Midwest Region
Midwest Region manufacturing technology orders in June stood at $155.39 million, 5.5 percent more than the May total of $147.24 million and up 114.0 percent when compared with last June. At $855.13 million, the 2011 year-to-date total is 157.1 percent more than the comparable figure for 2010.

Central Region
Manufacturing technology orders in the Central Region in June totaled $124.86 million, up 30.8 percent from May’s $95.48 million and up 126.7 percent when compared with the June 2010 figure. The $677.66 million year-to-date total is 108.2 percent higher than the total for the same period in 2010.

Western Region
Western Region manufacturing technology orders totaled $51.55 million in June, 40.7 percent more than the $36.64 million total for May and 99.2 percent higher than the tally for June 2010. At $247.35 million, 2011 year-to-date is up 70.5 percent when compared with last year at the same time.

To more accurately reflect its content, the U.S. Manufacturing Technology Consumption (USMTC) report has been renamed as the U.S. Manufacturing Technology Orders (USMTO) report. The report continues to be compiled from the same data, though this change was made to clarify what the report tracks – manufacturing technology orders. USMTO is a joint statistical program run by AMT – The Association For Manufacturing Technology and AMTDA, the American Machine Tool Distributors’ Association. Its participants include manufacturers and distributors of machine tools and other types of manufacturing technology.

“It is our belief that orders are the most forward-looking way to determine the state of the manufacturing technology market,” said Pat McGibbon, the AMT vice president of strategic information and research. “There had been some confusion that USMTC actually tracked manufacturing technology shipments, but we wanted to make clear that the report tracks orders.” Analysis of manufacturing technology consumption provides a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.

“The USMTO report has been an important way for companies to understand the state of the industry, trends, and one’s company relative position to the market,” said Brian J. Papke, the president of Mazak Corporation (Florence, KY). “Due to the changing nature of globalization, USMTO provides the most current business insight into business conditions and more accurately reflects the actual activity of manufacturers and distributors.”

Founded in 1902 as the National Machine Tool Builders’ Association, AMT supports and promotes the U.S. manufacturing technology industry.  The association provides U.S. builders of manufacturing systems with the latest information on technical developments, trade and marketing opportunities, and economic issues.  It also gathers and disseminates information about world markets, promotes its members’ products in those markets, and acts as a representative on manufacturing technology matters to governments and trade organizations throughout the world.

Founded in 1925, the American Machine Tool Distributors’ Association (AMTDA) is a trade association dedicated to advancing the sales and marketing of machine tools in the United States through the distribution channel. The 250 machine tool distributor member companies and 150 builder and marketing associate members represent the latest in manufacturing technology and machine tools in the North American marketplace.

www.usmto.com, www.AMTonline.org, www.amtda.org