May U.S. manufacturing technology consumption (USMTC) totaled $178.34 million, according to the American Machine Tool Distributors’ Association (AMTDA) and the Association For Manufacturing Technology (AMT). This total, as reported by companies participating in the USMTC program, was down 22.9 percent from April but up 58.6 percent from the total of $112.42 million reported for May 2009. With a year-to-date total of $966.63 million, 2010 is up 52.9 percent compared with 2009.
These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program.
“While we would like to see first quarter growth rates continue, we are not surprised by the typical second quarter ebb and flow in capital spending,” noted Peter Borden, AMTDA president, in a prepared statement. “We have seen an additional month of substantial orders, which helps to confirm that a sustainable recovery is taking place despite the buzz of those forecasting a W-shaped rebound. Industry forecasts for the year have been revised slightly upward by many sources and, if Congress passes the bonus depreciation allowance, this could accelerate growth even further.” The bonus depreciation allowance would allow businesses to qualify for a tax deduction equal to 50 percent of the cost of any new capital investment in addition to standard depreciation deductions.
The United States Manufacturing Technology Consumption (USMTC) report, jointly compiled by the two trade associations representing the production and distribution of manufacturing technology, provides regional and national U.S. consumption data of domestic and imported machine tools and related equipment. Analysis of manufacturing technology consumption provides a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.
U.S. manufacturing technology consumption is also reported on a regional basis for five geographic breakdowns of the United States.
Northeast Region manufacturing technology consumption in May stood at $33.78 million, a drop of 7.2 percent when compared with the $36.38 million total for April, but up 18.6 percent when compared with May 2009. With a year-to-date total of $159.16 million, 2010 was up 21.3 percent when compared with 2009 at the same time.
With a total of $28.88 million, Southern Region manufacturing technology consumption in May was 9.7 percent less than April’s $31.99 million but 111.5 percent more than last May’s total. The year-to-date total of $154.24 million was 86.5 percent above the comparable figure for 2009.
May manufacturing technology consumption in the Midwest Region totaled $43.99 million, down 26.5 percent when compared with the $59.87 million total for April, but up 56.1 percent when compared with May a year ago. The $263.29 million 2010 year-to-date total was 45.0 percent higher than the total for the same period last year.
At $53.00 million, May manufacturing technology consumption in the Central Region was down 28.4 percent from April’s $74.06 million but up 152.3 percent when compared with last May. The $271.62 million year-to-date total was 82.7 percent more than the 2009 total at the same time.
With a total of $18.70 million, Western Region manufacturing technology consumption in May fell 35.4 percent from April’s $28.93 million and was off 11.4 percent from the total for May 2009. At $118.32 million, 2010 year-to-date was 34.3 percent higher than the comparable figure a year ago.