U.S. manufacturing technology orders declined in January, dropping 40.7 percent compared to December and 11.4 percent compared to January 2016, according to the latest U.S. Manufacturing Technology Orders report from AMT – The Association For Manufacturing Technology.

“January’s slump was not unexpected as it was in line with analyst forecasts for a soft start to 2017. We continue to be on track for an upturn later in the spring,” said AMT President Douglas K. Woods. “Several large capital expansion projects have been announced in recent weeks, and the PMI was up for the sixth consecutive month. Our members report increased quotation activity and at the HOUSTEX show in early March, both attendees and visitors were upbeat.”

There are several indications of a coming upturn in orders for capital manufacturing equipment. A long list of noteworthy expansion projects has been announced recently by leading global manufacturers, including $386 million for Pratt & Whitney’s Columbus, Ohio, facility, and Toyota’s $600 million investment in Princeton, Ind. Additionally, the Cutting Tool Market Report for January showed an 8.7 percent monthly gain in cutting tool consumption, a measure of the primary consumable in the manufacturing process.

Orders for January 2017 totaled $252.21 million, down from December’s $425.18 million. USMTO is a reliable leading economic indicator as manufacturing companies invest in capital metalworking equipment to increase capacity and improve productivity

April U.S. cutting tool consumption totaled $173.64 million according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report (CTMR) collaboration, was down 5.7% from March’s $184.08 million and down 15.0%  when compared with the total of $204.34 million reported for April 2015. With a year-to-date total of $689.76 million, 2016 was down 10.3%  when compared with 2015.

These numbers and all data in this report are based on the totals actually reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools.

Steve Stokey, President of USCTI, states “The cutting tool numbers continue to be negative in scenarios – month over month, year over year and year to date.  While there is not much good news on the horizon as we head into the typically soft summer months of the business cycle, there is some optimism with the PMI moving over 50, but there is definitely a sense of caution as we move into the next 90 days.”

Although the slower summer months are ahead, there are positive factors to keep in mind while looking forward to the coming months.“The cutting tool sector took a step backwards in April after showing some modest improvements over the last few months. Demand levels continue to reflect a movement to stabilization in a generally weak environment for manufacturing. This reflects the sluggish global economic growth with minimal gains in U.S. industrial production, the strong dollar, weak agriculture, oil and gas activity, and the rising election uncertainty,” according to Eli Lustgarten, Senior Vice President at Longbow Securities. “Current headwinds are likely to continue in the near term with some added pressure from relatively flat automotive demand, material weakening in heavy truck production and ongoing significant weakness in coal mining. Despite talks of a possible interest rate increase from the Fed, we expect some modest improvement in the second half of 2016 as U.S. economic growth drives the robust consumer spending and housing activity.”

The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process – the cutting tool.  Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.

Historical data for the Cutting Tool Market Report is available dating back to January 2012.  This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology.

March U.S. cutting tool consumption totaled $184.08 million according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report (CTMR) collaboration, was up 6.2% from February’s $173.38 million and down 7.9% when compared with the total of $199.89 million reported for March 2015. With a year-to-date total of $516.12 million, 2016 was down 8.5% when compared with 2015.

These numbers and all data in this report are based on the totals actually reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools.

“The cutting tool industry seems to be on its current plateau, which shows slow sales volume improvements for the last four months. Improvements in the domestic economy and international markets are necessary to establish growth in our industry,” says Brad Lawton, chairman of AMT’s Cutting Tool Product Group.

Improvements may be on the horizon as leading indicators and business indexes have progressed in the past few months. “Cutting tool shipments in March were the highest in nine months. However, shipments remained relatively weak as they continued to contract compared with one year ago,” adds Steve Kline, Director of Market Intelligence at Gardner Business Media.“The good news is that some of the earliest leading indicators for the metalworking industry, such as interest rates, exchange rates, and housing permits, have been moving in a positive direction for a number of months. Also, our own business index has shown some improvement in the metalworking industry since November.”

The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process – the cutting tool.  Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.

Historical data for the Cutting Tool Market Report is available dating back to January 2012.  This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology.

The U.S. Manufacturing Technology Orders report (USMTO) for January 2016 showed that order values were down 30 percent from December, according to AMT – The Association For Manufacturing Technology. Year-over-year orders declined 21 percent.

“The drop in orders was not unexpected,” explained Douglas K. Woods, President, AMT. “January numbers are typically lower than December as companies that have financial years synced with the calendar year place delayed orders based on where they are relative to budget goals.”

“This cycle will be less dramatic in 2017,” Woods added. “The temporary tax incentives which have spurred year-end buying decisions for more than a decade are now permanent or extended for several years.”

The automobile, aerospace and medical sectors are currently driving orders, while the off-road construction; oil and gas; and agriculture sectors continue to struggle. As a result, the Southeast region is particularly strong when compared to other regions of the country, due to the significant presence of auto, aerospace and medical companies in this region.

Although orders were down, January average unit values hit their highest level since January 2015 suggesting manufacturers are buying more sophisticated manufacturing technology to ramp up productivity rather that expand operations which would show a broader increase in orders and lower unit values.

“Despite today’s soft market, the mood from the 400+ manufacturing technology suppliers and buyers that attended the recent MFG meeting was upbeat, as were the forecasts,” said Woods. “Manufacturing leaders from across the country gathered to gain insight into how technology can make their companies more productive, secure and flexible in an increasingly digital landscape. They are looking forward to 2016 finishing strong.”

Forecasts from The MFG Meeting, the joint annual meeting of members of AMT and the National Tooling and Machining Association, suggest that the U.S. economy is poised for growth along the lines of 2.5 – 3.5 percent driven by the consumer demand. Analysts speaking at the conference also expect China’s economy to rebound sooner than expected, and oil prices to reach $45 a barrel by year’s end.

AMT expects the overall market for manufacturing technology to remain weak well into the spring and summer months. Activity should slowly begin to turn around this fall. September’s IMTS – The International Manufacturing Technology Show 2016 is poised to deliver a significant boost in sales in the fourth quarter.

USMTO data is a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.

The latest U.S. Manufacturing Technology Orders (USMTO) report showed that orders for manufacturing technology in October 2015 were down 0.3% from September and year to date were down 17.4% compared to the same point in 2014, according to AMT – The Association For Manufacturing Technology.

“While the general economy continues to grow at a moderate pace, the manufacturing sector is struggling with the effects of a strong dollar, reduced commodity prices, especially oil, and struggles in key export markets like China,” said AMT President Douglas K. Woods. “As the broader industry faces this slowdown, manufacturers are not making significant capital investment in new manufacturing technology.”

The U.S. GDP is forecast to grow 2.4% in 2015, but that growth is being fueled mostly by consumer spending. Economic data around manufacturing isn’t as positive. The latest PMI from the Institute for Supply Management stood at 48.6, with a reading below 50 indicating contraction. Additionally, the number of net manufacturing jobs dropped by 1,000 while the larger economy added 211,000 jobs. The ISM report and other indicators also show that manufacturers are working to reduce their excess inventory, meaning companies are concerned with the prospects for short-term future growth.

“Market flatness can be expected to remain into 2016, and signs pointing to short-term interest rate hikes from the Federal Reserve could potentially hamper the consumer spending that is currently driving economic growth,” Woods said. “Manufacturing is the real driver of sustainable economic growth, and tax provisions, such as bonus depreciation and Sec. 179 expensing, encourage the investment in plants and equipment necessary for manufacturing strength and competitiveness. Factories don’t have a great deal of excess capacity, meaning any uptick in activity could help the manufacturing economy bounce back.”

October U.S. manufacturing technology orders totaled $327.39 million, down 28.3% compared to $456.44 million in October 2014. Year to date, total orders for 2015 stand at $3,452.82 million, compared to $4,178.71 million at the same point in 2014. This data is a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.

September U.S. cutting tool consumption totaled $170.8 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report (CTMR) collaboration, was up 1.3% from August’s total, down 11.7% from September 2014 and down 1.9% when compared year-to-date in 2014.

These numbers and all data in this report are based on the totals actually reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools.

“The month-to-month performance shows little change and certainly no significant recovery from the effects of the strong dollar and low oil prices, therefore the current industry conditions will continue,” says Brad Lawton, chairman of AMT’s Cutting Tool Product Group. This September was expected to be down from 2014’s numbers as IMTS bloomed into shipments in 2014.

The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process – the cutting tool.  Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.

Historical data for the Cutting Tool Market Report is available dating back to January 2012.  This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology.

July US cutting tool consumption totaled $177.5 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report (CTMR) collaboration, was down 6% from June’s total and down 5.6% from July 2014.

These numbers and all data in this report are based on the totals actually reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools.

“Caution is the condition of the month as we note the flat to declining cutting tool market performance.  Changing currency values coupled with low oil prices support these conditions, with an outlook for improvements in the fourth quarter,” says Brad Lawton, chairman of AMT’s Cutting Tool Product Group.

The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process – the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.

Historical data for the Cutting Tool Market Report is available dating back to January 2012.  This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology.

May U.S. manufacturing technology orders totaled $336.98 million according to AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the USMTO program, was down 13.2% from April’s $388.43 million and down 6.2% when compared with the total of $359.28 million reported for May 2014. With a year-to-date total of $1,798.34 million, 2015 was down 7.9% when compared with 2014.

These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTO program.

“In large part, the decline in manufacturing technology orders is due to smaller manufacturers feeling a sense of economic uncertainty and therefore hesitant to make any kind of capital investment,” said AMT President Douglas K. Woods. “In addition, the energy industry has curbed its spending, accounting for about half of the year-to-date decline in orders, and aerospace did not perform as well as expected in the first quarter. We expect the downturn to ease thanks to strong performance in the automotive and medical industries, with industrial production and a stronger PMI also indicating resilience in manufacturing.”

For more details click here 

April U.S. manufacturing technology orders totaled $384.81 million according to AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the USMTO program, was down 8.1% from March’s $418.67 million and down 1.0% when compared with the total of $388.51 million reported for April 2014. With a year-to-date total of $1,458.90 million, 2015 was down 8.5% when compared with 2014.

These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTO program.

“Right now capital equipment makers are feeling the effects of a stronger dollar, which creates a drag on exports, and lower oil and natural gas prices, which means less spending on equipment investments from the energy industry,” said AMT President Douglas K. Woods. “But what is a negative now should help us later – imported components for capital equipment are costing less, and businesses will accumulate savings from lower fuel prices in the coming months, meaning more money for capital investment. We believe investment in manufacturing will remain steady, and overall performance for the year will be as strong as we saw in 2013 and 2014.”

The United States Manufacturing Technology Orders (USMTO) report, compiled by the trade association 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.

Detailed information can be obtained from here 

March U.S. cutting tool consumption totaled $197.6 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report (CTMR) collaboration, was up 9.8% from February’s total and up 4.6% from March 2014.

These numbers and all data in this report are based on the totals actually reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools.

“As we close the first quarter of 2015, strong cutting tool shipments in March prove that this year’s economic outlook remains solid for our industry,” said Brad Lawton, chairman of AMT’s Cutting Tool Product Group. “This increase is on track with the positive trend in machine tool orders and durable goods manufacturing. There is a possible caution in the Industry regarding the increasing value of the Dollar and the potential impact on exports.”

The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process – the cutting tool.  Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.

Historical data for the Cutting Tool Market Report is available dating back to January 2012.  This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology.