Manufacturing Technology Orders Surge in May 2024 Despite High Interest Rates
Orders for manufacturing technology totaled $386.7 million in May 2024, according to the U.S. Manufacturing Technology Orders Report by AMT – The Association For Manufacturing Technology. This marks a nearly 22% increase from April and a 6.5% rise over May 2023, making it the first month in 2024 to surpass the previous year's figures. Despite a 12.2% decrease in orders for the first five months of 2024 compared to the same period in 2023, the rise in May indicates a growing demand.
Manufacturers are beginning to increase capital equipment purchases to meet ongoing demand despite the Federal Reserve's sustained high interest rates. This trend is further supported by steady cutting tool orders and high production levels, according to the Cutting Tool Market Report and Federal Reserve data.
While contract machine shops showed modest growth, electrical equipment and power generation sectors saw significant investments, driven by government funding from the CHIPS and Infrastructure acts. The automotive sector also continued machinery purchases, though at a slower pace.
As the industry anticipates the International Manufacturing Technology Show (IMTS) 2024, the appetite for additional manufacturing capacity appears to be growing, indicating resilience in the face of economic challenges.