Even in the face of improving economic health, 2023 orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders Report from the AMT – The Association for Manufacturing Technology, consistently fell short of orders placed in 2022.
Don’t miss any content from Distribution Strategy Group. Join our list.
November 2023 was no different, with orders falling to $399.8 million, 10.3% lower than those placed in November 2022 and 2% behind orders placed in October 2023. Year-to-date orders reached $4.45 billion in 2023, 13.3% below the same period in 2022.
Contract machine shops, the largest consumer of manufacturing technology, decreased their November 2023 orders by nearly 16% from October 2023. The decline was nearly balanced by increases from other manufacturing sectors.
Of those sectors that increased orders in November, aerospace manufacturers peaked at 60% above the monthly average compared to the rest of 2023. Electrical equipment manufacturers also increased orders. Tight conditions in the labor market persisting through the holiday travel and shopping seasons necessitated additional investment in automation to help manufacturers meet consumer demand.
While overall orders for the year were down compared to their near-record levels in 2022, several regions and industries saw a late-year rally, showing strong order activity through November 2023.
The Northeast and South Central regions declined by around 2% from their 2022 totals – virtually flat compared to the steeper declines seen in other regions. The losses in these regions were driven by significant year-over-year growth in orders from aerospace manufacturers. The South Central region also benefited from significant growth in orders from the automotive sector.
