Recently, The Association For Manufacturing Technology (AMT) MTForecast 2022 included two days of presentations from experts in economic forecasting and market data to help manufacturing technology leaders make informed business decisions. Below are the top three takeaways from the session:
Overall Economic Downturn Will Be Short With Mixed Impact On Manufacturing
In the next year, the recession will be mild and bottom out in the third quarter of 2023, followed by a sustainable rebound. Machine tool output is forecasted to be in line with 2019 levels. Due to the backlog of orders resulting from supply chain problems, 2023 machine tool orders will not increase but shipments will. Conversely, shipments and orders for machine tool accessories in 2023 will increase. Many customer industries will expand, such as aerospace and transportation, while accessory and mold investments will see greater volatility.
Auto Industry Disruptions Creating Opportunities For Parts Manufacturers
The automotive sector is a changing landscape as the big brands evaluate current methodologies and rethink their plans for the future. Electric vehicles have fewer parts and less complex manufacturing needs, but internal combustion engine vehicles will remain the dominant choice for the next few years. Once EV pricing and regulatory incentives are created, the tipping point for EV demand is expected around 2029.
Stagnant Interest Rates Will Reduce Large Capital Purchases.
The Federal Reserve has provided good inflation rates for the last 40 years, allowing manufacturing in the United States to grow unabated with only modest recessions. Now the Federal Reserve is at a point where it cannot reduce interest rates until inflation begins to recede. This will have the greatest impact on large machine purchases. As the economy improves in the second half of 2023, these purchases will be slow to pick up again.
AMT’s MFG 2023 is scheduled April 26–28, 2023 in Phoenix, Arizona and will allow attendees to gain further industry insights, economic forecasting, and market data aiding strategically planning for manufacturing technology businesses.
For more information: www.amtonline.org