US manufacturing orders have witnessed the best year since 1996. Does this translate into a renaissance era?
The Association for Manufacturing Technology (AMT) reports that December 2012 US manufacturing orders reached $499.43 million – up 17.8 percent from November, but down 9.4 percent when compared to the December 2011 total of $550.99 million.
With a year-end total of $5,705.58 million, 2012 was up 2.6 percent compared with 2011.
Numbers and data are based on input from companies participating in the US Manufacturing Technology Orders (USMTO) program.
The 2012 finish – the highest order total in 13 years – confirms the renaissance of US manufacturing, says AMT President Douglas K. Woods. “This shows the resilience of the industry in the face of GDP contraction in the fourth quarter, along with fiscal and political concerns that have been overshadowing much of the general economy.”
The USMTO report, compiled by the trade association representing the production and distribution of manufacturing technology, provides regional and national US orders data of domestic and imported machine tools and related equipment. Analysis of manufacturing technology orders provides a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.
US manufacturing are also reported on a regional basis (five US geographic breakdowns):
- Northeast – Manufacturing technology orders in December stood at $74.02 million, up 10.1 percent from the November total of $67.24 million but down 25.0 percent compared with December 2011. The $789.38 million year-end total was nine-percent less than the total for 2011.
- Southern – Orders in December totaled $78.11 million, up 19.1 percent from November’s $65.58 million but down 12.4 percent compared to December 2011. At $835.28 million, 2012 was up 12.2 percent compared to 2011.
- Midwest – Orders totaled $166.19 million in December, a rise of 27.3 percent when compared with November’s $130.54 million but 9.7 percent less than the total for December 2011. The year-end total of $1,814.51 is one-percent more than the comparable figure for 2011.
- Central – At $125.05 million, December manufacturing technology orders were up 14.6 percent compared with the $109.10 million total for November but down 1.2 percent when compared with December a year ago. With a year-end total of $1,586.85 million, 2012 was up 4.7 percent when compared with 2011.
- Western – December orders totaled $56.06 million, up 8.6 from from November’s $51.62 million and up 6.8 percent when compared with the December 2011 total. At $679.56 million, the 2012 total was 6.9 percent more than the comparable figure for 2011.
Rockin’ and Rollin’
“Manufacturing is on a roll,” says Woods. “It has been more than 50 years since we’ve seen this mix of low-energy costs, strong profitability, steady wages, and wave of innovation. The combined impact rocketed manufacturing to the leading role in the economic recovery. Add to this the steady stream of reshoring activity and you can see why manufacturing is back to stay, at least for a long while. We’ll looking at a great time collaborate with academia and Washington D.C. to create a thriving environment.”
Founded in 1902, the Virginia-based Association for Manufacturing Technology (AMT) represents and promotes US-based manufacturing technology. Members design, build, sell, and service the continuously evolving technology that lies at the heart of manufacturing. AMT specializes in providing targeted business assistance, extensive global support, and business intelligence systems and analysis. The USMTO report is compiled by AMT. All data is based on totals reported by USMTO participating companies. For more information, visit www.AMTonline.org.