Consumption of U.S. manufacturing technology rose in March, with significant sales gains in every major region, according to new data. The latest increase signals a strong first quarter in machine tech consumption and an accelerating recovery among many manufacturing businesses.

The total value of manufacturers’ machine tool and related equipment consumption in the United States reached $258 million in March, a 58.1 percent increase from February and 49.5 percent above the $172.59 million in March 2009, according to the latest U.S. Manufacturing Technology Consumption (USMTC) report, released this week. With a year-to-date total of $548.53 million, machinery consumption in the first quarter of 2010 is up 33.7 percent over the same period last year.

Based on data from American Machine Tool Distributors’ Association (AMTDA) and Association for Manufacturing Technology (AMT) member companies, the USMTC provides regional and nationwide consumption figures for manufacturing equipment, machine tools and related equipment.

On a regional level, the largest monthly gains were in the Southern states, with March machine tech consumption rising 132.9 percent over February, to $44.03 million. Consumption in this region was 126.5 percent above March 2009, while the first-quarter total of $91.36 million was 65.1 percent higher than in Q1 2009.

Meanwhile, machine tech consumption in the Midwest rose to $77.4 million in March, an 82.1 percent increase over February, while the first-quarter value of $155.85 million was 28.2 percent higher than the same period in 2009. Sales in the Western states climbed to $37.06 million, a 67.9 percent gain over February, and the Q1 total was 33.9 percent higher than in the first quarter last year. In the Northeast, consumption rose to $35.58 million, a 33.6 percent increase over February, bringing the first quarter 11.3 percent above Q1 2009. Consumption in the Central region grew to $63.94 million in March, a 20.4 percent gain over February, while the first-quarter total was 40.4 percent above the same period last year.

The widespread gains in March offset a monthly decline in manufacturing equipment purchases in February, and the strong year-over-year growth in the first quarter indicates a widening economic rebound for the equipment sector.

“The March increase in manufacturing technology orders is further proof that the recovery is accelerating,” according to AMTDA President Peter Borden. “The number is encouraging considering that bank lending is still anemic and that Congress has done little to help manufacturing, such as re-passing the bonus depreciation tax bill or R&D credits.”

New orders for manufactured goods rose 1.3 percent over February, reaching $391.5 billion, according to a report from the U.S. Department of Commerce last week. In February, new orders also increased 1.3 percent over the previous month. Manufacturing shipments rose 1.4 percent in March, with machinery shipments, up four of the last five months, making the largest gain.

The Commerce Department found that new orders for machinery rose from a seasonally adjusted value of $23.9 billion in February to $25.9 billion in March, an 8.6 percent gain. Meanwhile, machinery shipments rose 4.8 percent, from $23.1 billion in February to $24.3 billion in March. For the first quarter, machinery orders were up 13.1 percent over Q1 2009, while first-quarter shipments were down 2.5 percent from the same period last year.

For manufacturing firms, concerns remain over the state of the global recovery and financial prospects in international markets.

“Most business surveys show optimism rising and many companies planning to boost capital expenditures further in coming months,” the Wall Street Journal reports. “But disparities remain. Large companies that export to growing Asian economies, for example, tend to be in better shape than smaller firms, many of which still face lackluster sales and problems getting the credit they need to expand.”

“We still expect some ebb and flow for the rest of the year because of the uncertainties in the world economy,” Borden said.

Earlier

Manufacturing Tech Consumption Climbs in February

Resources

First Quarter Manufacturing Technology Consumption Up 33.7%
Association for Manufacturing Technology / American Machine Tool Distributors’ Association, May 10, 2010

Full Report on Manufacturers’ Shipments, Inventories and Orders March 2010
U.S. Department of Commerce, May 4, 2010

Investment by Companies is Robust
by Mark Whitehouse
The Wall Street Journal, May 1, 2010