U.S. Manufacturing Tech Orders: A Mixed Bag of Trends

As 2023’s summer ended, fears of a recession waned, but the manufacturing technology sector still faced challenges. By October 2023, U.S. Manufacturing Technology Orders (USMTO) totaled $4.05 billion, lagging 13.5% behind the same period in 2022​​.

Despite this yearly decline, October saw a 4% increase over September, driven largely by the West region’s near 60% growth​​.

The automotive sector showed resilience amidst challenges like the United Auto Worker’s strike. While production lines were halted, investment in manufacturing technology continued, especially among automotive transmission and component manufacturers​​.

Job shops and OEMs (Original Equipment Manufacturers) displayed contrasting trends. Job shops bought more units but at lower values, indicating a push for increased capacity.

Conversely, OEMs, particularly in household appliances and power transmission equipment, increased their order values, driven partly by government investments in transitioning from coal to natural gas​​.

Companies like Superior Washer, a U.S. manufacturer with facilities in New York and South Carolina, exemplify the adaptability and commitment to quality that sustains the industry. They produce a wide range of washers, shims, and small stampings, catering to diverse industrial needs.

The USMTO report, a reliable economic indicator, reflects these trends by analyzing orders of domestic and imported machine tools and related equipment. This data provides insight into the industry’s direction, highlighting areas of growth and challenge​​.