Manufacturing Technology Orders Drop in October - Modern Distribution Management

Log In

Manufacturing Technology Orders Drop in October

Orders totaled $457.7 million in October 2022, a 20% drop from the same month last year and down 12% from September.
New orders of manufacturing technology totaled $457.7 million in October 2022, a 20% drop from the same month last year.
Author
Date

New orders of manufacturing technology totaled $457.7 million in October 2022, down 20% from the same month last year and down 12% from September, according to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology.

October saw the the smallest decline in orders from an IMTS September ever recorded. Orders are nearly even with this point in 2021, roughly $4 million above the YTD total in October 2021, according to the report.

“Although we are reporting a down month and near-flat year-to-date sales, orders for manufacturing technology continue to come in at a near-record pace,” said Douglas K. Woods, President of AMT. “October 2022 was the third-highest October on record. Typically, orders in an October after an IMTS are down 23% from the previous month. Orders are returning to normal seasonal trends, but at an elevated level.”

During 2020, industries were reducing machinery orders, according to the report. Last year, they seemed to be increasing orders in unison; however, for the last several months, customer industries returned to a more independent order pattern. Job shops are placing fewer orders for machinery as they return to their core customers such as aerospace and automotive, the report states.

“While machinery orders from job shops are slowing, that trend could reverse if the economy tumbles into a mild recession,” said Woods. “In uncertain economic times, manufacturers tend to contract out any excess capacity needs instead of investing in additional machinery. This, in turn, leads job shops to require additional capacity of their own.”

Construction machinery manufacturers increased orders in October, “likely in anticipation of government-funded infrastructure projects coming online,” the report states. HVAC and appliance manufacturers decreased orders significantly in that same period. The decline in HVAC and appliances is likely the result of s”talled new home construction projects as interest rates rise and development becomes more costly,” according to the report.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.