Machinery Orders Near a Record Pace in October

December 15, 2022


New orders of manufacturing technology in October 2022, while 20 percent below October 2021 orders and off 12 percent from September 2022, represent the smallest decline in orders from an IMTS-year September ever recorded. Year-to-date, orders are roughly $4 million above the total in October 2021.  All of that according to the latest U.S. Manufacturing Technology Orders Report published by AMT--The Association For Manufacturing Technology.

“Although we are reporting a down month and near-flat year-to-date sales, orders for manufacturing technology continue to come in at a near-record pace,” says AMT president Douglas K. Woods. “October 2022 was the third-highest October on record.”

Other report findings: Job shops are placing fewer orders for machinery as they return to their core customers such as aerospace and automotive. “While machinery orders from job shops are slowing, that trend could reverse if the economy tumbles into a mild recession,” adds Woods. “In uncertain economic times, manufacturers tend to contract out any excess capacity needs instead of investing in additional machinery. This, in turn, leads job shops to require additional capacity of their own.” 

Construction machinery manufacturers dramatically increased orders in October, while HVAC and appliance manufacturers decreased orders significantly.

“While it will be difficult to match the amazing end to 2021, we are optimistic the orders through the remainder of 2022 will result in only a modest decrease from our best year on record,” concludes Woods. “The bonus depreciation passed in the 2017 Tax Cuts and Jobs Act will begin to sunset in 2023, likely accelerating orders that would otherwise have been placed during the following year. The impact of these additional orders may be offset by rising interest rates and slowing delivery times. Even anticipating a modest decline, it seems there is still steam behind this historic run of investment in manufacturing technology.”

 

See also: Association for Manufacturing Technology

Technologies: Management

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