According to a recent report from U.S. Association for Manufacturing Technology, 2015 machine tool orders were down 17% compared to the previous year 2014.

Pat McGibbon, AMT VP of Strategic Analytics, explained why the 20% increase in December U.S. Manufacturing Technology orders is just average:

“Even though the latest U.S. Manufacturing Technology (AMT) report shows December orders were up 20%t over November, it’s actually just below the average usually seen for December. December orders are typically 22-24% higher than November, reflecting end-of-year fiscal conditions, concern over interest rates, sales to reduce inventory, and companies looking to gain tax advantages from investing in new machinery”, McGibbon explained.

McGibbon said, “The better gauge of the current market is comparing 2015 order totals to those of 2014. In that case, orders were down 17%, a downturn that AMT has been forecasting since late 2013.”

McGibbon noted, “Interestingly, this hasn’t been an even decline. Some geographical regions and industry sectors are doing better than others. This spottiness will continue into 2016. Overall, the energy and off-road and highway construction industries have fallen dramatically. But the automobile industry has made dramatic gains and aerospace looks strong everywhere. The consumer electronics industry has come out of nowhere — buying millions of dollars in new manufacturing equipment at nearly double the rate it has in the past.”