U.S. Machinery Orders Climb in First Quarter of 2026 Amid Ongoing Economic Uncertainty

Demand for manufacturing technology continued to strengthen in the first quarter of 2026, as U.S. manufacturers increased investments in machinery and automation despite ongoing geopolitical and economic challenges.

According to the latest U.S. Manufacturing Technology Orders (USMTO) Report published by AMT – The Association For Manufacturing Technology, new orders of metalworking machinery totaled $681.3 million in March 2026. The figure represents a 40.3% increase over February 2026 and a 31.5% increase compared to March 2025.

For the first quarter of 2026, manufacturing technology orders reached $1.61 billion, marking a 27.8% increase year over year and extending the industry's growth momentum into another year.

Automation Continues to Drive Machinery Investment

Industry data suggests manufacturers are continuing to prioritize automation and advanced production technologies as they address ongoing workforce shortages and seek productivity improvements.

While machine tool inflation accelerated early in 2026, average order values have continued to outpace inflation. This trend indicates that manufacturers are investing in more sophisticated equipment and integrated automation systems rather than simply purchasing higher volumes of machinery.

The manufacturing sector continues to face labor challenges, with workforce shortages remaining a significant factor influencing capital investment decisions. As a result, automation technologies have become an increasingly important component of machinery purchases across multiple industries.

Capital Spending Remains Resilient

The report notes that businesses have continued investing in production equipment despite a period of uncertainty driven by shifting trade policies, tariffs, and geopolitical developments.

Manufacturing technology demand remained strong throughout the quarter, supported by steady consumer demand and ongoing business investment in production capacity. Industry observers suggest that many manufacturers have adapted to changing economic conditions and continue to move forward with long-term capital expenditure plans.

Mixed Performance Across Manufacturing Segments

Contract machine shops, traditionally the largest buyers of manufacturing technology, increased their machinery purchases during the quarter. However, growth in this segment lagged the broader market, continuing a trend seen in recent years.

Meanwhile, aerospace manufacturers experienced a decline in orders from February to March 2026. Despite the monthly decrease, investment levels remained elevated as manufacturers worked to address commercial aircraft backlogs and ongoing production requirements.

One of the strongest-performing sectors was the engine, turbine, and power transmission equipment market. Manufacturers in this segment more than doubled their investment levels compared to February 2026, approaching the spending levels recorded at the end of 2025.

Industry analysts point to growing electricity demand, including infrastructure requirements associated with expanding data center development, as a potential driver of future investment in power-generation and transmission equipment manufacturing.

Outlook for the Remainder of 2026

Economic indicators from the first quarter suggest that both consumer spending and business investment remained relatively strong despite broader uncertainty. Current forecasts indicate machinery orders could finish 2026 near 2025 levels, while demand for cutting tools is expected to increase, signaling continued manufacturing activity.

Industry experts also note that growing quotation activity and expanding manufacturer backlogs could create opportunities for stronger-than-expected order growth later in the year if those opportunities convert into equipment purchases.

As manufacturers continue investing in automation, production efficiency, and capacity expansion, the manufacturing technology sector remains positioned as a key indicator of broader industrial activity throughout 2026.