January Metalworking Machinery Orders Post Expected Monthly Drop, Healthy YoY Increase - Modern Distribution Management

January Metalworking Machinery Orders Post Expected Monthly Drop, Healthy YoY Increase

Orders sunk from their December record high, but were up year-over-year despite volume maintaining a longer-term low trend.
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New U.S. orders for metal cutting, forming and fabrication machinery (manufacturing technology) totaled $441 million million in January — a 45.8% drop from December’s record high, but a 24.4% year-over-year increase. That’s according to the Association for Manufacturing Technology’s (AMT) latest Manufacturing Technology Orders Report (USMTO).

The number of units ordered in January 2026 fell to the lowest level since July 2024, which was near the trough following a post-COVID peak.

Compared with orders placed in January of other years, 2026 had the highest value since 2022, while the number of units ordered was the lowest since 2010.

The major monthly decline was expected, as orders have decreased from December to January in every year of the USMTO, with 3.5% between December 2006 and January 2007 being the lowest such decrease on record.

As expected, nearly every industry group tracked saw a monthly decrease in manufacturing technology orders placed in January following a better-than-expected December, with AMT noting that “the rate of decline from a particular industry cannot be used as evidence of shfting trends.”

The January USMTO report emphasized the following points: 

  • Among growing industries, manufacturers of motor vehicle transmission and powertrain parts nearly tripled their January orders month-over-month. Machinery orders from this industry reached their highest level since April 2015, amid auto manufacturers’ retreat from electric vehicle production in favor of internal combustion and hybrid vehicles.
  • The value of manufacturing technology orders began growing in 2024’s fourth quarter due to increasing demand for automation and a changing mix of customer industries. However, the volume of units ordered has not increased proportionally over the same period. “The number of units ordered in January 2026 is comparable to recovery periods for manufacturing technology orders on an absolute and in January-to-January trends,” the report said. “An economy driven by healthy consumer activity and sustained capital investment will ensure a solid foundation of demand for manufacturing technology in the coming years, so long as customers can find their footing long enough to sign an order.”

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