Orders for metal cutting, forming, and fabricating equipment declined sharply by 29.8% from December to January, according to the latest U.S. Manufacturing Technology Orders (USMTO) report by the Association for Manufacturing Technology (AMT). The total order value for January 2025 stood at $357.3 million, reflecting reduced demand across several key industrial sectors.
Despite the month-over-month downturn, the report highlights a 5.7% increase in order volume compared to January 2024, and a 16.2% rise above the average January order volume. AMT suggested that order activity may have stabilized following the moderate downturn of the past two years.
Regional Disparities in Order Declines
The report revealed regional variations in demand decline:
Northeast & Southeast: Sharpest declines, down -52.1% from December
North Central-West & South Central: Double-digit percentage drops
West: Less severe, down -8.7%
North Central-East: Nearly stable, with a modest -0.7% decrease
Sector-Specific Trends
Contract machine shop orders, a major segment for machine tools, fell over 30% from December after showing growth in late 2024. However, the year-over-year decline was less severe than in previous years.
Aerospace: Orders plunged nearly -50% from December but were 11% higher than January 2024.
Automotive: Orders plummeted 66.0% month-over-month, the steepest sector decline.
Medical Manufacturing: A bright spot, with machining equipment demand reaching its highest level since September 2023.