Demand for manufacturing technology decreased in most U.S. regions in August, but orders for machine tools and equipment were up significantly over the same period last year.

The total value of United States manufacturers’ machine tool and related equipment consumption fell to $460.61 million in August, down 9.4 percent from July, according to the latest U.S. Manufacturing Technology Orders (USMTO) report, released Monday. Despite the monthly decline, the August total was 88.5 percent higher than the $244.35 million reported for August 2010.

With a year-to-date total of $3.44 billion, manufacturing technology consumption in the first eight months of 2011 was up 101 percent compared to the same period last year.

Based on data from member companies of the American Machine Tool Distributors’ Association and the Association for Manufacturing Technology (AMT), the USMTO report provides national and regional consumption statistics for manufacturing technology.

On a month-over-month basis, machine tool orders declined in three of the five major regions tracked by the USMTO.

The largest drop was in the Western region, where August manufacturing tech consumption fell to $53.35 million, a 50.2 percent decline from the July total. However, orders remained 90.1 percent above the total for August 2010, and the year-to-date value of $408.31 million was 100.6 percent above the total for the same period last year.

In the Southern states, manufacturing tech consumption dropped to $58.18 million in August, down 23 percent from July but up 90.1 percent year-over-year. With a year-to-date total of $440.45 million, consumption in the Southern region was 81.1 percent higher than in the first eight months of 2010.

Orders in the Midwest declined 9.3 percent from July, dropping to $144.68 million in August, but remained 77.4 percent above the total for August 2010. The year-to-date consumption total of $1.16 billion was 128.9 percent above the level for the same period last year.

Meanwhile, manufacturing tech orders in the Central region increased 30.5 percent month-over-month, climbing to $140.07 million in August and marking a 115.5 percent increase over August 2010. At $928.03 million, the 2011 year-to-date total was 105.6 percent above the total for the same period last year.

Orders also rose in the Northeast, increasing 9.5 percent over July to total $64.32 million. The total for August was 64.4 percent higher than the comparable figure in 2010. At $500.03 million, the year-to-date total was 64 percent above the total for the first eight months of 2010.

“Despite news reports that wider economic growth may be stagnating, the manufacturing technology industry is sustaining its momentum,” AMT President Douglas Woods said. “With orders still up substantially over last year, there is clearly optimism within the industry as firms are seeing future growth opportunities that merit new capital investment.”

According to the latest data from the U.S. Department of Commerce, the value of new machinery orders remained relatively unchanged between July and August, totaling $32.6 billion each month. However, new orders for industrial machinery surged 26.2 percent, climbing from $2.77 billion in July to $3.5 billion in August. For the first eight months of the year, machinery orders totaled $252.73 billion, a 16.7 percent increase over the same period in 2010.

Meanwhile, machinery shipments rose from $29.7 billion in July to $31.3 billion in August, a 5.2 percent gain. Year-to-date machinery shipments reached $231.1 billion, 12 percent higher than the previous year.

“Companies ordered more machinery, computers and communication equipment in August, a positive sign for the slumping U.S. economy,” the Associated Press reports. “An increase in demand for those kind of longer-lasting factory goods suggests businesses are sticking with their investment plans, despite slow growth and weak consumer spending.”

Earlier: Machine Tech Orders Rise in July

Resources

Manufacturing Technology Orders up 101% from 2010
Association for Manufacturing Technology, Oct. 10, 2011

Full Report on Manufacturers’ Shipments, Inventories and Orders — August 2011
U.S. Department of Commerce, Oct. 4, 2011

Businesses Boost Orders for Equipment, Machinery
by Martin Crutsinger
The Associated Press, Sept. 28, 2011