Manufacturing Technology Orders Reach Record High in December 2025

New orders for metalworking machinery reached a historic high in December 2025, signaling continued momentum in manufacturing technology investment heading into 2026.

According to the U.S. Manufacturing Technology Orders (USMTO) Report, published by AMT – The Association For Manufacturing Technology, orders totaled $814.3 million in December, marking the highest monthly order value on record. The December total represented an 86.7% increase from November 2025 and a 59.9% gain compared with December 2024.

2025 Orders Surpass Prior-Year Totals

Even before December data was included, cumulative manufacturing technology orders through November 2025 had already exceeded the total value of all orders placed in 2024 by 5.1%. With December results added, total machinery orders for 2025 reached $5.74 billion, finishing 22.5% higher than 2024.

Following a sharp rebound from the 2020 COVID-19 recession, manufacturing technology demand peaked in 2021 before entering a multi-year decline that bottomed out in mid-2024. The recovery began in September 2024, coinciding with IMTS – The International Manufacturing Technology Show, and gained further traction throughout 2025.

Industry conditions supporting the rebound included a more favorable interest rate environment, easing uncertainty during the latter half of the year, and the passage of tax provisions encouraging capital investment.

Diverging Trends in Order Value and Unit Volume

While total investment value increased steadily throughout 2025, the number of machines ordered followed a more uneven pattern. January recorded the lowest order value of the year, while unit volumes experienced a modest decline between May and August 2025.

This divergence suggests that some orders may have been delayed following heightened uncertainty after an April tariff announcement, even as larger, longer-term capital investments continued. The trend also reflects a broader, ongoing decoupling between machine unit counts and total order value that began in the second half of 2021, driven in part by rising demand for automation and industry-specific purchasing behavior.

Sector-Level Investment Patterns

Orders from contract machine shops, the largest customer group for manufacturing technology, increased 19.1% in 2025. While this sector remains a key driver of unit growth, its performance trailed the overall market’s 22.5% growth, contributing to the widening gap between order value and unit volume.

In contrast, aerospace manufacturers, which typically purchase higher-value equipment, recorded a 45.1% increase in machinery orders compared with 2024. Strong factory shipments and ongoing capacity constraints supported elevated investment levels in the sector.

Investment from automotive manufacturers remained volatile following shifts related to electric vehicle production and subsequent retooling efforts. After a 22.2% increase in 2024, auto-related machinery investment continued to fluctuate in 2025.

The fastest-growing segment in 2025 was commercial and service machinery, which expanded 121.5% year over year. This category includes inspection equipment widely used in semiconductor fabrication facilities.

Outlook for 2026 Manufacturing Investment

Factors that drove manufacturing technology investment to record levels at the end of 2025 are expected to persist into 2026, with single-digit annual growth anticipated. Continued expansion in AI infrastructure is creating additional demand for equipment supporting power generation and distribution, while rising U.S. steel production—contrasting with global declines—may signal further capacity investments by primary metal producers.

Machinery ordered in 2025 is expected to be installed on shop floors throughout the first quarter of 2026. Combined with higher industrial activity levels, this is projected to push cutting tool consumption up nearly 5% in 2026.

AMT noted that sustained consumer demand and elevated capital investment align with the Federal Reserve’s assessment that interest rates are approaching a neutral level, as supply and demand forces move closer to balance. If current trends continue, the manufacturing sector is expected to gather in Chicago for IMTS 2026, scheduled for September 14–19.