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Demand for Machine Tools on the Rise, But Uncertainty Looms Ahead

by sthv

New orders for CNC machine tools and related technology surged by 32.6% from February to March, reaching $515.8 million, according to the latest U.S. Manufacturing Technology Orders (USMTO) report. This marks a 33.8% increase compared to March 2024, bringing the total value of manufacturing orders for the year to $1.255 billion. This figure represents a 12.4% rise over the same period last year.

“The first quarter of 2025 shows strong signs that demand for manufacturing technology is recovering after two years of mild decline,” said the Assn. of Manufacturing Technology (AMT), which compiles the monthly report.

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The report tracks capital equipment purchases across the U.S. by order value and machine units, offering insight into future manufacturing trends. The data highlights investments made by machining operations in preparation for new production programs.

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Regionally, the North Central-East region—covering Michigan, Ohio, Kentucky, Tennessee, and Indiana—saw the highest increase in new orders for metal-cutting equipment, with a jump of 49.1% from February to $109.25 million. Other regions also posted solid gains, although some areas, including the Southeast (-4.5%) and North Central-West (-3.4%), showed slower growth compared to the January-March period of 2024.

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AMT noted that the March rise in new orders continues the positive momentum seen since the fourth quarter of 2024. However, it pointed out that contract machine shops’ investments in new capital equipment were weaker in the latest report, which may explain the slower overall demand in the first quarter of 2025 compared to the fourth quarter of 2024. Despite this, AMT emphasized that the decline was not significant enough to derail the industry’s upward trend.

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Demand from aerospace machine shops showed strong improvement in March, with these businesses placing the highest number of orders on record and ordering the most units since December 2023. However, the ongoing strike by the International Association of Machinists against Pratt & Whitney could hinder this demand, much like the strike against Boeing in September-October 2024.

While the current demand for manufacturing technology is promising, AMT remains cautious about the future. “Increasing uncertainty and risks to the economy could disrupt the positive trend in manufacturing technology orders,” the group stated. “Despite initial forecasts of strong growth in 2025, Oxford Economics recently revised its outlook, predicting a high single-digit decline. Economic conditions could push the recovery of machinery demand into the latter half of 2026.”

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