New orders of manufacturing technology totaled $411.3 million in June 2023, AMT — The Association for Manufacturing Technology reported Monday. According AMT’s latest United States Manufacturing Technology Orders Report, June 2023 orders increased 12.6% over May 2023 but fell 1.7% below June 2022 orders.
Year-to-date orders for 2023 reached nearly $2.5 billion in June, according to the report. That’s 13% below the total for the first half of 2022.
“Orders of manufacturing technology have continued their downward trend since peaking in the second half of 2021; however, for perspective, they remain above historical averages,” says Douglas K. Woods, president of AMT. “Even in non-IMTS years, the majority of orders tend to come in the second half of the year. Despite some headwinds, including fears of a recession, it would seem reasonable that manufacturing technology orders could outperform some of the more pessimistic expectations if we return to that historical trend.”
Job shops, the largest customer segment, only increased spending by 4.2%, compared to the industry average growth of 12.6% from May to June. They also decreased the number of units ordered, while the overall industry remained about flat. Woods attributes the stunted growth to anxiety in the market.
“Job shops tend to be smaller to medium-sized businesses, and the effects of economic uncertainty, coupled with higher interest rates, have begun to take a toll, causing some to delay capital investments,” says Woods.
Despite this, AMT reports manufacturers of automotive transmissions have been increasing investment in manufacturing technology. Year-to-date orders for manufacturing technology from the automotive transmission and powertrain parts manufacturing sector are at the second-highest level since 2015.
“Investments on this scale show how manufacturers are preparing for a prolonged transitional period from internal combustion engines to electric vehicles,” Woods adds. “Moving toward electrification means facing numerous supply and logistical hurdles, from the sourcing of elements to grid reliability. Auto manufacturers recognize that until these challenges are overcome, demand for internal combustion engines will justify further investment.”
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