U.S. Manufacturing Technology Orders Finish 2016 Down 4.0 Percent
In addition to those indicators, two other measures suggest a likely boost in capital spending for equipment and machinery: cutting tool consumption and spending from machine shops.
Feb 13, 2017 -- Manufacturing technology orders finished 2016 down 4.0 percent compared to 2015, according to the December 2016 U.S. Manufacturing Technology Orders Report from AMT - The Association For Manufacturing Technology. Month over month, December orders were up 20.6 percent compared to November.
As orders have pulled to near-even with levels seen before the latest dip, the general manufacturing economy is showing signs of growth. The January PMI from the Institute for Supply Management was 56, indicating expansion in manufacturing for the fifth consecutive month. There was also growth in capacity utilization and industrial production in December, the most recent month for which data are available.
In addition to those indicators, two other measures suggest a likely boost in capital spending for equipment and machinery: cutting tool consumption and spending from machine shops.
"There has been a significant uptick in shipments for cutting tools, the primary consumable in the manufacturing process, and machine shop spending for the month was up 32 percent from November," said AMT President Douglas K. Woods. "Since large manufacturers will leverage their supply chains capital equipment before expanding their own capacity, gains for machine shop investment are promising because they typically mark an overall greater need for capacity, and a broader upturn on the horizon."
Orders for December 2016 totaled $406.72 million, up from Novembers $337.24 million. The December monthly order value was the second highest for the year after Septembers $503.67 million, which was when orders were registered from IMTS - The International Manufacturing Technology Show. Total orders for 2016 were valued at $4,013.13 million compared to $4,178.23 million in 2015. USMTO is a reliable leading economic indicator as manufacturing companies invest in capital metalworking equipment to increase capacity and improve productivity.
AMT - The Association For Manufacturing Technology represents and promotes U.S.-based manufacturing technology and its members-those who design, build, sell, and service the continuously evolving technology that lies at the heart of manufacturing. Founded in 1902 and based in Virginia, the association specializes in providing targeted business assistance, extensive global support, and business intelligence systems and analysis. AMT is the voice that communicates the importance of policies and programs that encourage research and innovation, and the development of educational initiatives to create tomorrows Smartforce. AMT owns and manages IMTS - The International Manufacturing Technology Show, which is the premier manufacturing technology event in North America.
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