Manufacturing orders slide in August
Manufacturing orders totaled under $300 million in August according to the Association for Manufacturing Technology (AMT), which is down more than 20% from the same period in 2019.
U.S. Manufacturing Technology Orders totaled $297.7 million in August 2020, a decrease of 11.5% from July 2020 and a 21.7% decrease from August 2019, according to the U.S. Manufacturing Technology Orders report published by the Association For Manufacturing Technology (AMT). Orders to date reached $2.3 billion, nearly a quarter (24.3%) lower than total orders through the first eight months of 2019. The manufacturing industry, like many, is dealing with the effects of COVID-19 and how it has changed operations as well as basic supply and demand expectations. There is some room for optimism, however, when looking at individual industries.
“Despite a decrease in total orders, more than half of the industries we track experienced month over month increases including appliances, electrical components, and automotive components,” said Douglas K. Woods, president of AMT in a press release. “Additionally, it is noteworthy that the average value of units increased from about $143,000 in the spring to $175,000 in late summer. Although this can be caused by different factors—an increase in orders of high-end equipment and/or an increase in margins overall—both are positive news for the industry.”
“Analyst predictions in May were that the industry would be down 50% for the year, and currently the industry is tracking closer to 24% down for the year. Indicators continue to improve with PMI holding strong at over 50 and capacity utilization experiencing its fourth straight month of improvement. Given the stabilization of prices and the increased demand in so many sectors, we continue to be optimistic that the recovery is moving in the right direction.”