Sky-high, difficult to fill demand is pushing manufacturers to spend more on technology. According to data published by AMT, the Association for Manufacturing Technology, orders for manufacturing technology rose by 9% from May to June 2021, which also saw 42% more orders than last June.
AMT said U.S. companies ordered $2.5 billion worth of manufacturing technologies in the first half of 2021, 49% more than in 2020.
According to Douglas K. Woods, AMT’s President, the growth is being driven by a rebound from the COVID-19 pandemic. Not only are companies buying as they were before the pandemic, he said, they’re actually buying more in order to deal with a backlog of demand.
“Not only has the industry recovered from the 2020 slump, but orders are now exceeding the pre-pandemic trend,” Woods said in a statement.
In particular, Woods noted that orders of manufacturers for humble hardware are on the rise. “Manufacturers of hardware, springs, screws, nuts, and bolts have significantly increased orders in June 2021,” he said. “Production of these commodity parts domestically appears to be an effort by manufacturers to diversify their supply chains in response to the global climate of material and shipping constraints.” Woods also said those who buy machines for making such parts can start shipping product within weeks of the machine’s delivery.
Also popular: medical equipment manufacturing. Orders for medical equipment manufacturing machines rose 60% compared to the first half of 2020 as manufacturers prepare to supply surgeons overseeing a backlog in nonessential elective surgeries like knee and hip replacements.
“According to a paper published at the end of 2020, there could be as much as a 36-month backlog in knee and hip replacement surgeries alone, so manufacturers of these components will continue to be busy into the future,” said Woods, who said that situation reflected the rest of the economy.
“As pandemic restrictions are eased, a massive rebound in demand is putting strain on producers and generating an economy-wide need for additional manufacturing technology,” he said.”
