New orders of manufacturing technology totaled $571.5 million in October 2021, according to the latest U.S. Manufacturing Technology Orders Report published by The Association For Manufacturing Technology (AMT). October orders declined 3.6% from September 2021 but increased by 50.2% over October 2020. Total orders in 2021 nearly reached $4.7 billion, a 53% increase over 2020. The three consecutive months ending in October totaled $1.7 billion, the largest three-month total since April 1998.
“The manufacturing technology market is flourishing in the current economic environment. Unfortunately, the impact on the bottom line isn’t as significant,” said Douglas K. Woods, president of AMT. “Our members are caught between higher material, component, and transportation costs and a customer base that is resisting price increases. This is an issue that will only grow worse if Federal Reserve actions this winter lead to higher interest rates. I believe it would be counterproductive to tighten monetary policies and raise the cost of expanding capacity at a time when our nation is experiencing an unparalleled supply chain disruption.”
The U.S. manufacturing technology market growth rate of 53% over 2020 levels is outstanding. It is particularly exciting because the critical component producers and industries hit hard by offshoring in the 1990s are driving this expansion through dramatic investments to expand U.S.-based capacity. These industries increased capital expenditure investment by multiples of previous years, far exceeding October’s market mean of 53%. The current level of manufacturing technology orders signals a start of manufacturers reinvesting in American-based production and strengthening of U.S. manufacturers’ supply chains.
It was also reported by the U.S. Cutting Tool Institute (USCTI) and AM that U.S. cutting tool consumption totaled $179.6 million. This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was up 10.1% from September’s $163.1 million and up 11.7% when compared with the $160.7 million reported for October 2020. With a year-to-date total of $1.6 billion, 2021 is up 7.9% when compared to the same time period in 2020.
These numbers and all data in the report are based on the totals reported by the companies participating in the CTMR program. The totals represent the majority of the U.S. market for cutting tools.
According to Bret Tayne, president of Everede Tool Company, “October sales numbers indicate that monthly and year-to-date sales in the cutting tools industry continue to grow in comparison to 2020. The expected improvement in the prospects for our industry’s customers, such as aerospace and automotive, bode well for the continuation of that trend.”
Mark Killion, director of U.S. Industries at Oxford Economics commented, “After moving sideways over the previous two months, which were hampered by supply chain snarls, the sharp rise in October reflects strong demand from key customers, such as those making medical equipment and off-road machinery.”
For more information: www.amtonline.org