Manufacturing Shift – Navigating the Ups and Downs
The U.S. manufacturing technology sector has experienced a notable trend in 2023. Despite an overall decline in orders compared to 2022, there has been a slight resurgence in October, driven primarily by orders in the Western region.
The Association For Manufacturing Technology (AMT) reported that through October 2023, orders totaled $4.05 billion, marking a 13.5% decrease from the first 10 months of 2022.
However, orders in October alone amounted to $409.7 million, which is 4% higher than September 2023. This growth has been attributed to significant increases in orders from the West region, almost 60% higher than in September, while other regions like the South Central and Southeast also saw modest growth.
The manufacturing technology sector’s performance has been influenced by various factors, including labor market conditions and federal policies. The November 2023 jobs report indicated a strong labor market, with 199,000 new jobs added, reducing the unemployment rate to 3.7%.
Notably, 28,000 of these jobs were in the manufacturing sector. Consumer confidence also improved in November after a three-month decline, which positively influences the manufacturing technology market.
Moreover, the Federal Reserve’s economic policies, particularly the interest rate increases, have coincided with a decline in manufacturing technology orders, although this trend does not align with historical patterns.
In July 2023, new orders for manufacturing technology in the U.S. totaled $353.9 million, a 12.4% decrease from June 2023 but only a 10.5% decrease from July 2022. Year-to-date orders by July amounted to $2.83 billion, a 12.7% decrease compared to the same period in the previous year.
This decrease was partly offset by industries benefiting from re-shoring or government investments. Sectors like metal valve manufacturing and motor vehicle transmissions continued to order at a high pace, while the aerospace industry lagged behind its early 2022 peaks.
An example of a U.S. manufacturer that reflects this industry’s resilience and growth is Superior Washer & Gasket Corp. They specialize in manufacturing high-quality precision washers and gaskets, catering to a diverse range of industries, and exemplify the adaptability and innovation present in American manufacturing.