Manufacturing technology orders rise in July
Manufacturing technology orders are increasing since the start of the pandemic as companies find their footing.
New manufacturing technology orders totaled $472.6 million in July 2021, according to the latest U.S. Manufacturing Technology Orders report published by AMT – The Association For Manufacturing Technology. July 2021 orders saw a slight decrease of 5.6% from June but a 41.5% increase over July 2020 orders. The year-to-date total was just shy of $3 billion, a 48% increase from the total through July 2020.
“July is typically a soft month in any year, and despite the massive recovery we’re seeing, 2021 is no different,” said Patrick McGibbon, chief knowledge officer at AMT. “The difference between 2021 and any other year is the scale of orders our members are reporting going into the late-summer slump. Through the first seven months of 2021, orders are just a fraction off the pace to become the program’s second-highest annual total.
“The amplified pace of orders over the past several months has injected a degree of confidence into manufacturing not seen since before the pandemic. Increased onshore capacity and diversified supply chains have made lead times more predictable and inventories more consistent, allowing manufacturers closer to end-use customers to justify the capital expenditures we are seeing in this month’s USMTO orders. While this is the general trend in manufacturing, there still are industries where supply chain issues remain an impediment, particularly industries whose products rely heavily on computer chips.
“In line with the increase in orders from consumer-adjacent industries, the automotive and aerospace sectors also increased their share of total orders in July 2021. However, these industries have not maintained their pre-pandemic share of monthly orders because of the breadth of industries in need of manufacturing technology. July orders saw increases in motor vehicle stamping, food processing equipment and agricultural equipment manufacturers.”