May Manufacturing Tech Orders Dip; Growth Remains Strong - Modern Distribution Management

May Manufacturing Tech Orders Dip; Growth Remains Strong

May orders were down 14% from April 2022 but nearly equal to May 2021 orders with a modest 1% decline.
Manufacturing Technology Orders

According to the latest U.S. Manufacturing Technology Orders Report published by the Association For Manufacturing Technology (AMT), orders of manufacturing technology dipped slightly in May 2022 to $441.2 million. May orders were down 14% from April 2022 but nearly equal to May 2021 orders with a modest 1% decline. Year-to-date orders reached $2.42 billion, a 20% increase over 2021 orders through May.

“Order activity has begun to moderate, but given the slight decline from record heights, 2022 is shaping up to be one of the best years over the last two decades,” said Pat McGibbon, chief knowledge officer at AMT. “In any other year, numbers like we saw in May 2022 would be one of the high points, but after the run we’ve seen the previous 12 months, the monthly change is more of a return to normal than a dramatic pullback.”

McGibbon noted that, since May 2021, the average monthly units ordered and their values have been in the top 25% of the program’s entire history, so this dip is much more of a return to normal than a dramatic pullback. The impact of inflation on the prices for manufacturing technology, difficulties over filling position vacancies and continued conflict in Europe have caused increased risk aversion among customers, leading to more cautious capital investment decisions.

“The impact of the pandemic on supply chains led to the reinvestment in industries that were nearly shuttered by imports. Industries like the manufacture of mold and dies, fabricated metal products, screws, and hardware have expanded capacity well beyond their pre-pandemic levels.” McGibbon continued: “In addition to securing supply chains from public health disruptions, there may be a renewed push to further reshore production, given the recent dangers to intellectual property outlined by the U.S. and U.K. intelligence agencies.”

 

Charts courtesy of the Association For Manufacturing Technology
Charts courtesy of the Association For Manufacturing Technology

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.

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.