U.S. machine shops’ and other manufacturers’ orders for capital equipment spiked +9.1% from May to June, totaling $429.2 million and 1,608 total units for the month as demand improved from two of the top market segments. The new results also showed improvements of +7.7% over June 2024, and +13.7% year-to-date compared to January-June 2024.
The data is compiled and presented by AMT - the Assn. for Manufacturing Technology in its monthly U.S. Manufacturing Technology Orders report, which tracks manufacturers’ purchases of metal-cutting and metal-forming machinery, according to order value and machine units, nationwide and in six regions. It serves as an indicator of future manufacturing activity because it quantifies machining operations’ investments in preparation for new production programs.
AMT noted that the value of new orders during January-June 2025 is +21.2% higher, and number of machines ordered is lower than the average year, suggesting growing automation has been an important factor for the investments made in recent months. “Such automated solutions allow companies to gain additional productivity at current workforce levels, bridging the gap caused by the shallow, upward trend of industrial output and the continued decline in employment,” according to AMT’s commentary.
There is some optimism based on the sources of the recent orders: AMT noted that contract machine shops (aka “job shops”) show signs of rebound following several months of weak order activity. These operations are the largest buying segment for manufacturing technology, and both the value of their orders and the units have increased +12.0% versus January-June 2024. However, AMT remains cautious about further demand improvement from contract machine shops.
Another positive indicator is the continued strong investments by aerospace manufacturers and suppliers. Those operations have increased the value of their orders by +6.0% year-over-year during the first half of 2025.
The energy sector also has shown improved order activity. Although electrical equipment manufacturers’ orders dropped -19.0% compared January-June 2024, the value of those orders is +24.0% above average. Also, orders by manufacturers of engines, turbines, and other power-transmission equipment increased +19.0% versus the first half of 2024, evidence of the strong level of investment in new data centers featuring on-site generators.
Primary metal manufacturers’ orders for manufacturing technology rose almost +50.0% compared to January-June 2024, which AMT noted is their highest level since July-December 2022. This increased investment mostly preceded the rise in U.S. raw steel output, as the manufacturers report increasing quotation activity and rising backlogs.
The regional manufacturing technology orders posted for June were not balanced; the North Central-East reported the largest order total at $113.3 million, though that amount was -12.9% lower than the May total (and +19.8% higher than the June 2024 figure.) The region’s year-to-date order total is now at $593.3 million, +16.3% higher than last year’s six-month result.
The West region had strong June results too at $81.0 million, up 36.2% for the month and +47.7% year over year. At $540 million, the West’s YTD total is +38.1% better than last year.
The June orders were also strong in North Central-West (+23.6% month/month) and the Northeast (+12.6%) and South-Central (+6.0%); but weaker in the Southeast (-4.4%.)
It’s notable that every region except the North Central-West (-1.2%) has improved its year-to-date order totals versus January-June 2024.
AMT remains guarded about the strength of the improvement seen in the June USMTO report. With inflation and uneven industrial activity carrying over from 2024, and the new complication brought by U.S. import tariffs, AMT noted that the “uncertainty” evident in the first half of 2025 is likely to continue in the second half.
In AMT’s recent Summer Economic Update, Oxford Economics revised its forecast to show modest single-digit growth in machinery orders in 2025 – which simply means a lesser degree of decline compared to the earlier forecast.
