Machinery Orders Rise in Q1 2026 Despite Global Uncertainty
U.S. manufacturers continued increasing investments in metalworking machinery during the first quarter of 2026, even as geopolitical tensions and economic uncertainty remained elevated.
According to the latest U.S. Manufacturing Technology Orders (USMTO) Report published by AMT – The Association For Manufacturing Technology, orders for metalworking machinery reached $681.3 million in March 2026. That represents a 40.3% increase from February 2026 and a 31.5% increase compared to March 2025.
Total manufacturing technology orders for the first quarter of 2026 reached $1.61 billion, marking a 27.8% year-over-year increase.
Manufacturing Technology Demand Remains Strong
The growth in machinery orders follows a year marked by tariff uncertainty and shifting global trade conditions. Industry activity continued to strengthen despite escalating geopolitical concerns surrounding the outbreak of war with Iran in late February 2026.
The report suggests many manufacturers are continuing capital investments to meet steady consumer demand while modernizing operations through automation and advanced manufacturing technologies.
Higher average order values also indicate ongoing investment in automation solutions as manufacturers work to address persistent labor shortages across the industry. The manufacturing sector continues to face a shortage of nearly 500,000 workers, contributing to increased demand for productivity-enhancing equipment and machine tools.
Aerospace and Energy Sectors Drive Investment
Contract machine shops, traditionally the largest buyers of manufacturing technology, continued increasing orders during the quarter, although growth remained slower than the broader market.
Meanwhile, aerospace manufacturers reported a decline of roughly 12% in orders from February 2026 levels. However, order activity in the sector remained historically elevated due to growing commercial aerospace backlogs and increased military production requirements.
Manufacturers producing engines, turbines, and power transmission systems posted some of the strongest gains in the report, more than doubling investments compared to February 2026. Industry analysts point to rising electricity demand from expanding data center infrastructure as a likely contributor to continued investment in this segment.
Outlook for Machinery Orders in 2026
Despite continued uncertainty in global markets, manufacturing output and capital spending trends remained resilient through the first quarter of 2026.
Current forecasts suggest machinery orders could finish 2026 at levels comparable to 2025, while demand for cutting tools is expected to increase. Industry observers say rising quotation activity and expanding manufacturer backlogs could create additional momentum for machinery orders during the remainder of the year.
As manufacturers continue investing in automation, machining technology, and production capacity, the outlook for the U.S. manufacturing technology sector remains cautiously optimistic.
