AMT Orders Report: OEMs Investing in Long-Term Projects
October 10, 2023Comments
August orders of manufacturing technology increased 16.1 percent from July 2023 but were down 12.2 percent from August 2022, according to the latest U.S. Manufacturing Technology Orders Report published by AMT—The Association For Manufacturing Technology.
“We are seeing industries focused on shorter-term projects reduce their spending, but at the same time, OEMs focused on longer-term production timelines have been increasing their spending, keeping orders at an elevated level,” says AMT president Douglas K. Woods. “The net result is that for the third consecutive month, the gap between year-to-date orders in 2022 and 2023 has narrowed, falling from a 14.6-percent deficit in May to the 12.6-percent difference we see today.”
Job shops continued to order machinery below their typical monthly share. The value of orders was well below their historical trend despite their share of unit orders remaining elevated. This indicates that while job shops continue to buy to increase capacity, OEMs are increasing their purchases of specialized machinery to make more complex, higher-value parts. Of those OEMs increasing orders, manufacturers of automotive transmissions have increased for yet another month, marking the highest three-month streak of orders since June to August 2017.
Manufacturers of engines, turbines and other power-transmission technologies also are increasing orders at a rapid pace. The current upward trend is the largest sustained increase in orders since the increase that peaked in summer 2008, driven by the transition from coal-fired power plants to electricity generated by natural-gas turbines.
See also: Association for Manufacturing Technology
Technologies: Management
