• TOPICS
    • Design
    • Manufacturing
    • Inspection
    • Heat Treating
    • Lubrication
    • Materials
    • The Gear Industry
    • Gears by Type
  • MAGAZINE
    • Current Issue
    • Departments
    • Archives
    • Subscribe
    • Advertise
  • NEWSLETTER
    • Subscribe
  • VIDEO
    • Gear Technology TV
      • Ask the Expert Live
      • Revolutions
    • Industry Videos
  • BLOGS
  • BUYER'S GUIDE
  • NEWS and EVENTS
    • Product News
    • Industry News
    • Events
  • ADVERTISING
    • Brand Awareness
      • Print: Display Advertising
      • Online: Web Banners & Keyword Banners
      • Online: Native Advertising (Sponsored Content)
      • E-mail: Custom, White Papers & Webinars
      • E-mail: Newsletter Sponsored Content (Native Advertising)
    • Response & Lead Generation
      • Online: Sponsored Content (Native Advertising)
      • E-mail: Newsletters
      • E-mail: Newsletter Sponsored Content (Native Advertising)
      • E-mail: Custom, White Papers & Webinars
      • Online: Buyers Guide
    • Print Advertising
      • Print: Display Advertising
      • Print: MPT Expo Showstoppers
      • Print: Buyers Guide
      • Print: Manufacturing sMart
      • Print: Specifications
      • MPT Expo Show Guide Advertising
    • Online Advertising
      • Online: Web Banners & Keyword Banners
      • Online: Native Advertising (Sponsored Content)
      • Online: Buyers Guide
      • Online: Specifications
    • E-mail Advertising
      • E-mail: E-Newsletters
      • E-mail: Newsletter Sponsored Content (Native Advertising)
      • E-mail: AGMA Industry News
      • E-mail: Custom, White Papers & Webinars
      • E-mail: Specifications
    • Special Promotions
      • Print: MPT Expo Showstoppers
      • Print: Buyers Guide
      • Print: Manufacturing sMart
      • MPT Expo Show Guide Advertising
  • CONTACT US
  • AGMA
    • Membership
    • Events
    • Education
    • Emerging Technology
    • AGMA Media
    • Standards
Subscribe
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Home » USMTO Reports Order Values Up, but Unit Sales Down

USMTO Reports Order Values Up, but Unit Sales Down

January 15, 2016

The U.S. Manufacturing Technology Orders report (USMTO) showed that order values grew 2.2 percent in November 2015 compared to the previous month, according to AMT - The Association for Manufacturing Technology. Year-to-date orders were down 17.2 percent compared to the same point in 2014. While total order value saw a monthly gain, the number of units sold dropped 16.31 percent. This data suggest that manufacturers are increasing their use of automated equipment to add productivity and lower costs, rather than expanding their operations and capacity.

"A significant portion of global manufacturing is experiencing slower growth, especially China, and we continue to struggle with the impacts of a stronger dollar," said AMT President Douglas K. Woods. "Investing in productivity and automation technologies is one way that manufacturers look to stay competitive in a softer market, especially as pricing moderates for finished manufactured goods."

The industries that made the most investment in equipment measured by USMTO included automotive, appliances, HVAC and computers and electronics - a trickle-down effect of the growth seen in new housing starts throughout 2015. Growth in the computer and electronics industry also stems from expansion in data centers as demand grows for cloud-based computing services.

Automotive sales saw a record-setting year in 2015, but increasing interest rates could put some curbs on spending for new vehicles in 2016. Congress also poised manufacturing for success in 2016 on two fronts: By passing a two-year budget deal that ends sequestration and greatly reduces the risk of a government shutdown, and by restoring important tax incentives for capital equipment purchases that expired at the end of 2014.

"In addition to the benefits that come from these tax incentives - specifically 50 percent bonus depreciation and permanent Section 179 expensing - we are hopeful that this will accelerate the replacement cycle for equipment that we are expecting in 2017 and 2018," Woods said. "The prolonged decline in orders we saw through 2015 is anticipated to give way to an upturn at the end of 2016."

November 2015 manufacturing technology orders totaled $329.76 million, which included orders for 1,795 units at an average value of $329,758 per unit. The total order value represented a 13.8 percent decline compared to November 2014. Year-to-date, orders for 2015 totaled $3,777.98 million, a drop of 17.2 percent compared to the $4,561.40 total at the same point in 2014. This data is a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.    
Industry News
  • Related Articles

    USMTO February 2016 Reports Orders Down, but Some Market Conditions Improving

    USMTO Reports Orders Up in March, but Still Recovering

    USMTO Shows December Orders Up, Year's Totals Down

Free Gear Technology Subscriptions
Subscribe
Free Gear Technology Subscriptions
Subscribe
FEATURED VIDEO
  • Helios1
    Forest City Gear Taps Helios Gear for Custom Cutting Tools
January 18, 2023
RECOMMENDED
  • Precision Equals Performance at ZPE GripTec

    October 12, 2022
    gt0922_Page_28_Image_0003.jpg
  • State of the Powder Metal Industry

    October 12, 2022
    gt0922_Page_30_Image_0001.jpg
  • The Afterglow of Furnaces North America 2022

    October 12, 2022
    gt0922_Page_20_Image_0001.jpg
  • Reigniting the Educational Infrastructure

    December 5, 2022
    gt1122_Page_20_Image_0001.jpg
  • Profile: Continuing Education and Training with the AGMA

    December 5, 2022
    gt1122_Page_26_Image_0001.jpg
  • Reigniting the Educational Infrastructure

    December 5, 2022
    gt1122_Page_20_Image_0001.jpg
  • Profile: Continuing Education and Training with the AGMA

    December 5, 2022
    gt1122_Page_26_Image_0001.jpg
  • Precision Equals Performance at ZPE GripTec

    October 12, 2022
    gt0922_Page_28_Image_0003.jpg
  • Subscribe
  • Advertise
  • Contribute
  • AGMA
Powered byAGMA
Copyright © 2023 Gear Technology
  • Privacy Policy
  • Contact