U.S. manufacturing technology orders fell 21% in January

According to the Association for Manufacturing Technology (AMT) January 2016 U.S. Manufacturing Technology Orders Report, the value of orders in January fell 30% from December last year and fell 21% year-over-year. 'The decline in order value is to be expected,' said AMT President Douglas K. Woods. 'Because companies' fiscal and calendar years overlap and they delay placing orders for budget goals, January's figures are typically lower than December's figures. Data.” “This cycle will be less pronounced in 2017.” Woods added, “Temporary tax incentives have stimulated year-end buying decisions over the past decade.” The auto manufacturing, aerospace and medical industries are currently driving Orders are growing, while off-road construction, oil and gas and agriculture will continue to struggle. As a result, the U.S. Southeast, home to many automotive, aerospace and pharmaceutical companies, is particularly strong compared to the rest of the country. While orders fell, the average unit value in January hit its highest level since January 2015, a sign that manufacturers are buying increasingly sophisticated manufacturing technology rather than scaling up to boost productivity. The result of increased productivity through scaling up will be an increase in the number of orders but a lower unit value. “Despite the current market weakness, the more than 400 manufacturing technology providers and buyers who attended the recent MFG conference were optimistic,” Woods said. Make businesses more productive, safer and more flexible. They all want 2016 to end strong.” Forecast from the MFG meeting, the joint annual meeting of AMT and members of the American Mold and Machining Association, says the U.S. economy is driven by consumer demand The stimulus will grow at a rate of 2.5-3.5%. Analysts at the conference said China's economic recovery is expected to be faster than expected, while oil prices will reach $45 a barrel by the end of the year. AMT expects weakness in the overall manufacturing technology market to continue into the spring and summer months of this year, with trends starting to turn around in the fall. The 2016 International Manufacturing Technology Exhibition in September will greatly stimulate sales growth in the fourth quarter of this year.