Manufacturing technology orders up more than 30% YOY
Strong consumer demand drove continued investments in manufacturing technology in all stages of the supply chain, leading to more than $400 million in manufacturing orders.
Manufacturing technology orders totaled $436.6 million in January 2022 according to the U.S. Manufacturing Technology Orders (USMTO) report published by The Association for Manufacturing Technology (AMT). January 2022 orders decreased by nearly 27% from December 2021, but increased by 33% from January 2021. The orders were the strongest on record since USMTO began tracking orders.
“USMTO typically shows a drop in orders from December to January, and, after December 2021 proved to be the best month on record, we expected to see a substantial decrease,” said Douglas K. Woods, president of AMT. “Recording the best January on record is a welcome sign that the strength of the manufacturing technology market will continue into 2022. Recent demand for production capacity has shifted from sectors producing final consumer goods to ones closer to the raw material process.”
Strong consumer demand through January 2022 drove continued investments in manufacturing technology in all stages of the supply chain. In 2021, orders for manufacturing technology were increasing uniformly across all sectors; however, the largest growth was in those closest to the final product. “Consumer demand necessitated elevated capital investment, but we are now seeing a shift to industrial demand,” said Woods. “This shift in industrial demand indicates that entire manufacturing supply chains are being brought back to the United States. Long term, the broad industrial base created by concentrated supply chains is a huge positive for the manufacturing technology industry and the economy as a whole.”
The market for manufacturing technology has proved its resilience over the past several months, despite several challenges facing manufacturers. “We have been highlighting issues that could take the wind out of the sails for the past several months, but the industry has overcome them in one way or another,” said Woods. “Recent geopolitical events and sustained inflation are two more challenges, and time will tell if the industry can find a silver lining behind them.”
Original content can be found at Plant Engineering.