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.