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The total value of United States manufacturers' machine tool and related equipment consumption rose to $606.56 million in September, up 22.9 percent from August, according to the latest U.S. Manufacturing Technology Orders (USMTO) report, released this week. Demand for U.S. machine tools and related products also increased on a year-over-year basis, with September 2011 orders rising 51.9 percent over the September 2010 total of $399.32 million.
At $4.07 billion, the 2011 year-to-date total is up 91.9 percent over the same period in 2010.
"September numbers were the second highest monthly dollar total in the last 15 years!" Peter Borden, president of the American Machine Tool Distributors' Association (AMTDA), said in a statement.
Based on data from member companies of the AMTDA and the Association for Manufacturing Technology (AMT), the USMTO report provides national and regional consumption statistics for domestic and imported machine tools and related equipment.
On a month-over-month basis, manufacturing tech orders were up in four of the five major regions tracked by the USMTO. On a year-over-year basis, machine tool consumption rose in all five geographic regions tracked.
The largest monthly gain was in the Northeast region, where manufacturing technology orders rose 74.6 percent from August to total $112.75 million in September. The September 2011 figure was also 71.9 percent higher than for the same month last year. At $612.93 million, the year-to-date total was 65 percent more than the comparable figure in 2010.
In the Western region, manufacturing tech orders totaled $69.07 million in September, 41.9 percent higher than in August and 109.1 percent higher than the September 2010 figure. So far this year, consumption in the region has reached $472.69 million, up 98 percent over the first nine months of 2010.
September orders in the Southern states totaled $78.04 million, marking a 34.5 percent increase over August and a 16.1 percent rise over September 2010. At $513.08 million, the year-to-date total is up 63.2 percent when compared with the same period last year.
Meanwhile, month-over-month machine tech orders in the Central region climbed 22.3 percent to total $170.82 million in September, up 48.1 percent from the comparable figure last year. The $1.1 billion year-to-date total marked a 92 percent rise over the total for the first nine months of 2010.
The sole monthly decrease occurred in the Midwest region, where manufacturing technology orders dropped 3.7 percent from August to $175.88 million in September. Despite the month-over-month decline, the September figure was 48.9 percent higher than the total in the same month last year. At $1.38 billion, the 2011 year-to-date total was 119.6 percent more than the comparable figure for 2010.
Borden and others say U.S. manufacturers are still rushing to beat an end-of-year bonus depreciation deadline.
"Increases in business investment have remained strong across many industries, and many analysts have attributed the fact to temporary depreciation rules that will begin to change in January 2012," American Machinist explains. "One such rule is the Internal Revenue Service's Section 179 provision that allows a business to immediately deduct the full expense of qualifying investments, up to a maximum of $500,000 for 2011. The provision will be reduced to $125,000 in January, and drops to just $25,000 in January 2013.
"Another incentive for buyers of machine tools may be bonus depreciation rules that currently allow businesses to mark down the full value of a capital investment," American Machinist continues. "That provision will be reduced from 100 percent to 50 percent, and eliminated entirely in January 2013."
According to the latest data from the U.S. Department of Commerce, the value of U.S. manufacturers' new machinery orders edged up 1.9 percent over August to total 32.63 billion in September. However, new orders for industrial machinery dropped by 4.7 percent to total $3.3 billion in September. For the first nine months of the year, machinery orders totaled $285.25 billion, a 15.5 percent rise over the same period in 2010, while the year-to-date value of industrial machinery orders remains 13.3 percent above the comparable figure for 2010.
The Commerce Department's data also show that month-over-month machinery shipments dipped 1.2 percent in September to total $31.07 billion. Nevertheless, at $263.36, the year-to-date total remained 12.2 percent above the comparable figure in 2010. U.S. manufacturers' month-over-month shipments of industrial machinery rose 4.2 percent to $3.53 billion in September, while the $28.61 billion value of shipments for the first nine months of the year were 18.6 percent higher than the year-to-date total of 2010.
Manufacturing technology orders up 91.9% in 2011
American Machine Tool Distributors' Association/Association for Manufacturing Technology, Nov. 14, 2011
September Machine Tool Orders Rose Nearly 23%
by Robert Brooks
American Machinist, Nov. 15, 2011
Full Report on Manufacturers' Shipments, Inventories and Orders September 2011
U.S. Department of Commerce, Nov. 3, 2011
Depreciation Rules, Investment Swings and Rescheduled Economic Growth
by Thomas F. Landstreet and Robert P. Murphy
Forbes, Nov. 7, 2011