July manufacturing orders down, but reshoring helps fill gap
New orders of manufacturing technology totaled $353.9 million in July 2023, according to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology. Reporting on September 11, AMT said July orders declined 12.4% from June 2023 but were only 10.5% lower than July 2022. Year-to-date orders reached $2.83 billion, 12.7% lower than this point last year.
“July is typically one of the slower months for manufacturing technology orders, so to be down slightly is not surprising,” said Douglas K. Woods, president of AMT. “The more interesting trend is that for two consecutive months, the gap in year-to-date orders has narrowed over what have been historically slow months. Job shops have continued to decrease orders, but other industries that have benefited from recent reshoring or government investment have been filling in the gap.”
Among individual sectors, job shops, the largest customer segment, placed their lowest total monthly orders since August 2020. Metal valve manufacturers recorded their third-highest monthly order value on record, which was last surpassed in September 2018. Their monthly orders reached nearly 5% of the total manufacturing technology order value for July 2023. Manufacturers of motor vehicle transmissions, which we highlighted in last month’s USMTO press release, continued to order machinery at an elevated pace. While still representing a large share of the market, the aerospace industry continued to order well below the peaks reached in early 2022. Several recently announced projects, such as the federal government’s $1.5 billion investment in communications satellites, could reverse the trend.
“Manufacturing technology orders have definitely begun to feel the effects of higher interest rates and economic uncertainty, but the buildup of domestic capacity means that there are more diverse sales opportunities than there have been in decades,” said Woods. “That is what has kept manufacturing technology orders well above their historical levels despite the recent downward trend, and it will likely lead the industry out of any mild recession on the horizon.”
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