Manufacturing Technology Consumption Up 58% In May

July 13, 2010
U.S. manufacturing technology consumption totaled $178.34 million in May--down 22.9% from April but up 58.6% from the total of $112.42 million reported for May 2009

U.S. manufacturing technology consumption totaled $178.34 million in May--down 22.9% from April but up 58.6% from the total of $112.42 million reported for May 2009.

With a year-to-date total of $966.63 million, it is up 52.9% compared with 2009, according to AMTDA, the American Machine Tool Distributors’ Association and AMT - The Association For Manufacturing Technology.

These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program.

“While we would like to see first quarter growth rates continue, we are not surprised by the typical second quarter ebb and flow in capital spending,” noted Peter Borden, AMTDA president. “We have seen an additional month of substantial orders which helps to confirm that a sustainable recovery is taking place despite the buzz of those forecasting a W-shaped rebound. Industry forecasts for the year have been revised slightly upward by many sources and, if Congress passes the bonus depreciation allowance, this could accelerate growth even further.”

The United States Manufacturing Technology Consumption (USMTC) report, jointly compiled by the two trade associations representing the production and distribution of manufacturing technology, provides regional and national U.S. consumption data of domestic and imported machine tools and related equipment. Analysis of manufacturing technology consumption provides a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.