Manufacturing Technology Orders Decline for Third Consecutive Year Yet Surpass Expectations: What This Means for the Industry

Summary

MCLEAN, Virginia – Feb. 10, 2025 – In December 2024, the total for U.S. manufacturing technology orders reached $513.8 million, marking a 15% increase from November. Compared to December 2023, this is a rise of 5.4%. For the entire year, orders totaled $4.7 billion, which is a 3.8% drop from 2023.

This is the third year in a row that orders have dropped. Yet, the 2024 numbers were still 9.7% above the average since 1998, suggesting a steady demand for machinery. Following the IMTS show in September, orders remained strong, which is unusual after such events.

Contract machine shops, the biggest consumers of this technology, initially slowed down early in 2024. However, they ended the year with a smaller decline of only 3.7% compared to 2023. Interestingly, despite challenges faced by Boeing, the aerospace sector saw a significant increase in technology orders, reaching the highest volume since December 2021.

In contrast, automotive manufacturers reduced their orders by 25% in 2024 as they adjusted to a normal level of vehicle demand and prepared for potential tariffs.

Nearly 40% of all orders in 2024 occurred after the IMTS show in September, indicating ongoing demand as we head into 2025. As of January 2025, the number of quotes remained high, but it took longer than usual to convert these quotes into orders. If geopolitical and trade issues stabilize, the forecasts for 2025 look promising.

About USMTO

The United States Manufacturing Technology Orders (USMTO) report is compiled by AMT–The Association For Manufacturing Technology. It includes data on U.S. orders for both domestic and imported machine tools, serving as a key economic indicator for manufacturing investments.

About AMT

AMT represents U.S. providers of manufacturing technology. Based in McLean, Virginia, AMT advocates for the industry, promoting innovation and competitiveness in manufacturing. They also produce IMTS, North America’s largest manufacturing technology show.

About IMTS

IMTS is where the manufacturing technology community connects to explore new advancements. Showcasing everything from CNC machining to robotics, IMTS is a major event, attracting visitors from over 110 countries, highlighting the latest in manufacturing solutions.

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