New Equipment Orders Off YoY, Except in the Burgeoning Aerospace Sector
August 12, 2024Comments
Orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders report published by AMT – The Association For Manufacturing Technology, climbed 4.3% in June 2024 compared to May, but registered down 1.6% year over year (YoY). Yet, while the average order value has increased significantly, the report finds, the number of units ordered for the month dropped to its lowest level since July 2023. This divergence, AMT officials note, indicates manufacturers generally are investing in more automated, task-specific solutions.
Orders through the first half of 2024 are down 10.7% YoY.
June 2024 orders from contract machine shops dropped more than 10% from May 2024 in the number of units ordered and in total order value. Through the first half of the year, the value of these orders was the lowest since the first half of 2020, but the number of units ordered fell further, reaching its lowest level since the first half of 2010.
One notable exception to this recent trend is the aerospace sector, which has increased its order volume through the first half of 2024 to the highest number of units since the first half of 2018. Yet, the value of orders remains about 2% below that for orders placed in the first half of 2022. Capacity utilization in the aerospace sector has reached post-COVID peaks, confirming that these manufacturers need additional machinery to meet growing demand.
See also: Association for Manufacturing Technology
Technologies: Management
