Manufacturing Technology Orders Slide In August, Industry Officials Still Upbeat
by October 12, 2015 3:06 pm 94 views
Total manufacturing technology orders for the South Central region of the U.S. declined nearly 73% in August compared to a year ago as production in the blue collar-friendly sector has fallen off significantly, according to a monthly report by the Association for Manufacturing Technology (AMT).
Nationwide, U.S. manufacturing technology orders saw double digit declines in August. Manufacturers are facing difficult economic headwinds caused by lower energy prices and a stronger dollar, AMT officials said in the report.
“While there is a sense of unease in manufacturing now as indicated by this reduction in orders combined with drops in the PMI and industrial production, some leveling after a period of strong growth is expected and helps build stable longer term growth,” said AMT President Douglas Woods.
Overall, U.S. manufacturing technology orders in August totaled $285.92 million down 10.2% from July’s $318.48 million and down 21.2% when compared with the total of $362.65 million reported for August 2014. With a year-to-date total of $2.77 billion, 2015 was down 10% when compared with 2014, AMT officials said.
Woods said despite the August swoon, the manufacturing industry is diversified and several sectors are still showing strength and “pockets of resilience,” including companies involved in automotive stamping and medical devices.
“While there is some cause for caution, we do not anticipate more than market flatness into the early part of 2016,” the AMT president said.
The monthly AMT report tracks manufacturing technology orders on a regional basis for six geographic breakdowns of the United States. Manufacturing technology provides the tools that enable production of all manufactured goods, AMT officials said.
In August, all regions of the U.S. lost ground, but the downturn in the five-state South Central area was twice that of the other manufacturing clusters, which include the Northeast, Southeast, West, North Central-East, North Central-West.
Year-to-date totals for the South Central region were also down as sales have dropped to only $225.18 million for the first eight months of the year, a 53.6% drop off from $485.74 million a year ago.
The Association for Manufacturing Technology represents and promotes U.S.-based manufacturing technology and its members – those who design, build, sell and service evolving technology in the manufacturing sector. Analysis of manufacturing technology orders provides a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity, AMT said.