Although aerospace orders are maintaining their previous flat rate of manufacturing orders, the automotive sector is actually seeing an increase. Machine shops, on the other hand, have shown a moderate decrease. Contract machining previously accounted for approximately 30% of all orders that were brought in by manufacturers, but this year they reached 40%. Spending in this particular industry also rose around 10%. This is despite the fact that the power transmission part of the industry has gone up by 10%.
- According to the Association for Manufacturing Technology, orders for US manufacturing technology fell to just over $360 million in September 2019, representing both a monthly and year-to-year drop.
- Reduced contract machining orders likely indicate a decision by companies to increase investments in their own manufacturing capabilities.
- Auto industry spending increases were likely indicative of confidence in the pending resolution of labor disputes between GM and its unions.
““The aerospace industry has been a stalwart in this downturn since the beginning of 2019. Spending in September was up modestly from August, and this is significant because it was achieved by broad investment across many companies, whereas August orders were based on only a few significant orders.””