New orders for manufacturing technology jumped to $430.06 million in May, closing the gap on what has been a slow year for sales.
According to AMT - The Association for Manufacturing Technology – this total represents a 13.6% increase from April and brings the year-to-date total to about $2.09 billion.
"A rise in U.S. manufacturing technology orders is welcome as we move into the summer months, which are typically soft," said Patrick W. McGibbon, AMT vice president, Industry Intelligence.
Even with the unexpected summer spike, the month's orders are still down 7.6% compared to May 2012 and the total 2013 orders down 6.9%. However, McGibbon sees hope in the coming months.
"New technologies are creating change in automotive production, while many aerospace manufacturers are making shifts within their supply chains," he said. "Contract machining is also seeing growth thanks to the cost advantages of manufacturing within the U.S. Meanwhile, foreign direct investment within the U.S. continues to increase, and all of these factors are contributing to new capital investment within manufacturing."
The United States Manufacturing Technology Orders (USMTO) report, compiled by the trade association representing the production and distribution of manufacturing technology, provides regional and national U.S. orders data of domestic and imported machine tools and related equipment.
Analysis of manufacturing technology orders provides a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.
Northeast Region: Northeast Region manufacturing technology orders in May stood at $71.56 million, down slightly from the April total of $72.25 million but 5.1% higher than the figure for May 2012. The $322.59 million year-to-date total is 2.1% lower than the total for the same period in 2012.
Southeast Region: Manufacturing technology orders in the Southeast Region in May totaled $43.57 million, up 23.7% when compared with April's $35.23 million and level with the May 2012 total. At $183.51 million, 2013 year-to-date is 12.4% less than total for 2012 at the same time.
North Central-East Region: North Central-East Region manufacturing technology orders totaled $100.46 million in May, up 36.0% from the $73.89 million total for April but 29.5% less than the total for May 2012. The year-to-date total of $537.92 million is 8.8% lower than the comparable figure for 2012.
North Central-West Region: At $73.46 million, May manufacturing technology orders in the North Central-West Region were down slightly when compared with the $73.61 million total for April and down 16.1% when compared with May a year ago. With a year-to-date total of $407.25 million, 2013 is down 0.5% when compared with 2012 at the same time.
South Central Region: May manufacturing technology orders in the South Central Region totaled $65.29 million, 9.9% more than April's $59.42 million and up 6.5% when compared with the May 2012 figure. At $320.22 million, the 2013 year-to-date total is 23.8% less than the comparable figure for 2012.
West Region: May manufacturing technology orders in the West Region totaled $75.72 million, 18.0% higher than April's $64.17 million and up 20.6% when compared with the total for May 2012. With a year-to-date total of $313.65 million, 2013 is up 11.6% when compared with 2012 at the same time.