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The total value of United States manufacturers' machine tool and related equipment orders dropped to $463.32 million in October, down 22.4 percent from September, according to the latest U.S. Manufacturing Technology Orders (USMTO) report. Although month-over-month orders declined, the October consumption total was 20.3 percent higher than the $385.21 million reported for October 2010.
With a year-to-date total of $4.53 billion, the value of manufacturing technology orders in the first 10 months of the year is up 80.5 percent compared with the same period in 2010.
Based on data from member companies of the American Machine Tool Distributors' Association and the Association for Manufacturing Technology (AMT), the USMTO report provides national and regional consumption statistics for manufacturing technology.
On a month-over-month basis, machine tool orders fell in all five of the major regions tracked by the USMTO.
The largest decline was in the Northeast, where manufacturing tech orders fell 43 percent from September to $64.11 million in October. Year-over-year machine tool consumption in the region also dropped 34.1 percent below the October 2010 level. However, the year-to-date consumption total of $677.09 million in the Northeast is 44.5 percent more than in the same period last year.
In the Southern states, the value of manufacturing tech orders dropped to $55.87 million in October, 28.4 percent less than the prior month, but was 40.6 percent above the October 2010 total. So far this year, manufacturing technology consumption has reached $568.93 million, up 60.7 percent from the same period in 2010.
Orders in the Western region fell to $54.65 million in October, down 19.9 percent from September, but were 35.3 percent higher than the October 2010 level. At $527.05 million, the 2011 year-to-date total is 88.8 percent higher than the comparable period last year.
Manufacturing tech orders in the Central region fell 16.4 percent to $138.74 million in October, but consumption was 49.3 percent above the October 2010 total. With a year-to-date total of $1.23 billion, orders are 85.3 percent higher than the first 10 months of 2010.
In the Midwest, month-over-month machine tool orders dropped 13 percent, totaling $149.95 million in October, but remained 30.5 percent above the October 2010 level. So far this year, consumption in the Midwest has reached $1.52 billion, 105.4 percent higher than the comparable figure in 2010.
"Manufacturing technology orders through October have already surpassed the total value accumulated in 2007," AMT President Douglas Woods said. "The beginning of 2012 will be a little slow as tax incentives pulled some orders back into 2011, which will likely make 2012 growth softer."
According to the latest data from the U.S. Department of Commerce, the value of new machinery orders in October increased 2.9 percent over September, climbing to $32.3 billion. However, industrial machinery orders declined 6 percent to $3 billion in October. For the first 10 months of the year, overall machinery orders are valued at $316.2 billion, up 14.8 percent over the same period in 2010.
Meanwhile, machinery shipments dipped 1.3 percent to $30.7 billion in October. Year-to-date machinery shipments total $293.7 billion, 12.6 percent above the value for the same period in 2010.
"The outlook for 2012 remains positive," according to Quality Magazine. "Energy will continue to be a large investor in manufacturing technology. The automotive industry is making major changes to address green issues, which will lead to significant investments in production technology, as well as spending to support the shift of the industry's center from Detroit to the South/Southwest. Aerospace green field investments will continue in the Southeast and West."
Manufacturing Technology Orders up 80.5% from 2010
American Machine Tool Distributors' Association/Association for Manufacturing Technology, Dec. 12, 2011
Full Report on Manufacturers' Shipments, Inventories and Orders October 2011
U.S. Department of Commerce, Dec. 5, 2011
Manufacturing Technology Demand Strong Amid Other Economic Weakness
Quality Magazine, Dec. 9, 2011