September Machine-Tool Orders Up, But Year-End Slowdown ExpectedNovember 14, 2022
New orders of manufacturing technology were up nearly 13 percent from August 2022, but fell short by 12.4 percent from September 2021 orders, according to the latest U.S. Manufacturing Technology Orders Report, published by AMT–The Association For Manufacturing Technology. Total orders thus far for 2022 are up 2.7 percent year-over-year, “but orders throughout 2022 are expected to fall short of 2021 order levels–the largest year in the program’s history,” says Pat McGibbon, chief knowledge officer at AMT. “The backlogs built over the last 18 months have lengthened delivery times and weigh on the decision to continue investing in additional equipment.”
Demand for additional domestic capacity and augmenting current production lines with automation has driven orders, the report shows. In September 2022, that was particularly apparent in orders for forming and fabricating machinery. Appliance and HVAC manufacturers in particular are increasing domestic capacity, as are supply chains for the aerospace sector, to reduce reliance on foreign components. And, the report reveals that the agricultural sector, feeling the brunt of recent labor shortages, has increased its investment in more efficient, automated machinery.
Adds McGibbon: “While signs are positive now, we expect orders to soften the remainder of the year for most production equipment, with the exception of advanced and automation technologies… in high demand to address the tighter labor market and increasing productivity of existing capacity.”
See also: Association for Manufacturing Technology