Tuesday, August 22, 2006

Machine Tool Status

A recent Association for Manufacturing Technology (AMT) (McLean, VA) publication shows that the US manufacturing technology industry is experiencing renewed growth in major markets, but continues to face tough global competition. Highlights include:

* The US machine-tool market finished 2004 with orders more than 40% above 2003 levels and shipments up 25%. But, consumption fell more than 60% from its peaks in 1998.

* While growth has been strong over the past two years, our manufacturing technology market is less than 60% of its peak in 1998.

* Optimists forecast double-digit growth in 2005, while forecasts for the following years diverge. Some sectors in the manufacturing technology markets will begin to slow as early as 2006.

* Consumer demand has slowed in recent months in key markets-such as autos, off-road and highway construction equipment, and appliances.

* Continuation of the capitalspending boom will depend upon the export markets for US-built capital goods and nontraditional, but expanding, domestic markets such as the medical equipment industry.

* The weakened dollar has made US products more attractive in Western Europe. Exports of both manufactured products and manufacturing technology equipment illustrate the temporary competitive advantages provided by exchange rate shifts. The weakened dollar, relative to Asian currencies, is likely to also lead to increased exports of US manufacturing technology.

* The US continues to excel in important categories, including: composite tape-laying machines; transfer lines and systems; small, medium, and large-size CNC machining centers; spar and skin mills for aircraft components; abrasive flow machining for difficult finishing problems, CNC turning centers, small assembly robots, and open-architecture controls.

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