According to the The Association for Manufacturing Technology (AMT; McLean, VA) U.S. Manufacturing Technology Orders report, the year-to-date total of U.S. manufacturing technology orders was $698.2 million, a 22.4% increase over the first two months of 2020. Sales in February 2021 increased 17.8% over January 2021.
Douglas K. Woods, president of AMT said, “February was the fourth-straight month of year-over-year gains in manufacturing technology orders, signaling the recent strength is likely the beginning of a sustained recovery following the 2020 recession.” He cited markedly increased orders in February in medical equipment manufacturers (a strong industrial laser market), likely the result of increased hospital capacity allowing delayed elective procedures to be scheduled.
Woods went on, “Increased consumer demand throughout the economy is evidenced by an increase in total spending. In January 2020, before pandemic-induced shutdowns, total consumer spending was nearly $15 trillion. After falling during the pandemic, consumer spending rebounded in the beginning of 2021 beyond the pre-pandemic level.”
He concluded. “From discussions we’ve had with manufacturers, it seems clear that companies that were more bullish in their forecasts kept their inventories at a higher level and invested more heavily in capital equipment, and those who found ways to shorten their supply chains to ensure that they could fill orders kept pace with demand and drove February’s phenomenal numbers.”
AMT’s report coincides with supporting data from other organizations and companies citing strong growth in the manufacturing sector in the U.S. An Industrial Laser Solutions unscientific survey of conditions in the industrial laser market also shows unexpected revenue growth. Some conclude that pent-up buying demand, led by pandemic buying shutdowns, may be the cause in the spurt in sales. If so, this good news is at least a relief from months of no news and action.