Steep Drop in US Machine Tool Orders

U.S. machine shops and other manufacturers new orders for metal-cutting and metal-forming machinery totaled $441.4 million in January 2026, -45.8% less than the historically high volume of orders recorded in December 2025 but 24.4% more than the January 2025 total. In fact, the latest number is in line (+0.8%) with the November result. In that sense, January signifies a return to the trend that preceded the end-of-year surge in demand.

The data is provided by AMT The Assn. for Manufacturing Technology in its latest U.S. Manufacturing Technology Orders Report. The monthly update offers an index to future manufacturing activity, as machining operations invest in capacity to support their anticipated production activity.

AMT noted that in January the number of machines ordered was down -42.8% from December 2025, the lowest number for units ordered since July 2024. The number of units ordered has become a significant parallel to the order volumes during recent months, as the value of individual machines increases with the incorporation of automation systems and other technologies.

“After the upside surprise in December orders, a decline was expected, and the rate of decline from a particular customer industry cannot be used as evidence of shifting trends,” according to AMT’s principal economist Christopher Chidzik.

“Among the growing industries, manufacturers of motor vehicle transmission and powertrain parts nearly tripled their January orders over December 2025,” he added. “Machinery orders from this industry reached their highest level since April 2015, amid auto manufacturers’ retreat from electric vehicle production in favor of internal combustion and hybrid vehicles.”

The USMTO report is an index to future manufacturing activity because it quantifies machining operations’ investments as they anticipate new production programs. AMT’s report tracks manufacturers’ purchases of metal-cutting and metal-forming machinery, according to order value and machine units, nationwide and in six regions.

The January report shows uniformly slow buying activity for metal-cutting and -forming machines. The highest volume for January was posted in the West region, where new orders totaled $115.2 million, -41.1% less than in December but 33.2% higher than January 2025.

In the North Central-East region new orders totaled $96.9 million during January, -33.8% below December and 4.3% more than January 2025. The North Central-West region reported $86.8 million in new orders, -17.6% less than December and 45.2% more than January 2025.

The Southeast region had January new orders totaling $55.3 million, -55.2% less than December and 43.8% more than January 2025. The Northeast’s January new orders were worth $53.5 million, -61.9% less than December and 8.3% more than January 2025.

The South Central region’s new-order total was $33.7 million, -67.4% below December and 21.1% above the January 2025 result.