Manufacturing technology orders, as measured by the U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology, reached $435.7 million in March 2024. Orders increased by about 25% above February 2024 levels. Orders in March typically increase significantly from February, as many manufacturing technology manufacturers end their fiscal years in March. Although the data showed the typical uptick from February, March 2024 orders were 21.3% lower than March 2023. Year-to-date orders totaled $1.13 billion, an 18.6% decrease from first-quarter 2023 orders.
The year-to-date forecast relied on the widely held belief at the time that the Federal Reserve would cut interest rates three times in 2024. Over time, inflation has remained stubbornly high, the labor market has remained strong, and interest rate cuts have become less likely. This has led to the Federal Reserve's “prolonged high interest rate” policy, limiting growth and creating some hesitation in business investment. Despite this general fear, some opportunities remain due to advances in government spending and technology.
• Orders from contract machine shops increased in March 2024, reaching last year's highest level. Despite this increase, the average monthly orders from contract machine shops will decrease by 11.3% in 2024 compared to 2023. Customers who order parts from contract machine shops increasingly avoid long procurement cycles, preferring monthly or order-to-order orders. Sporadic, one-time purchases. As a result, machine shops are reluctant to invest in additional machinery.
• Power generation and transmission equipment manufacturers led the increase in orders from February to March 2024, reaching the highest level since March 2023. Due to government investment in new energy technologies, orders from this sector have been on the rise since September 2023. . This sector is seen as a reliable source of future growth as energy demand increases as the economy becomes more digital and AI begins to play a greater role in daily life.
• Bucking the national trend, manufacturing technology orders increased in both the Southeast and West regions when comparing the first quarters of 2023 and 2024. Orders in the Southeast were driven by a significant increase in orders from the aerospace sector due to increased military investment in projects. Some manufacturers have relocated from states with less favorable business environments. As government and private investment in semiconductor manufacturing ramped up, growth in the West was driven by orders from computer and electronics manufacturers.
For more information, visit https://www.amtonline.org/article/manufacturing-technology-orders-jump-in-march-2024-as-southeast-and-west.
