Posted on 10/09/2005 6:31:14 PM PDT by Pharmboy
WASHINGTON, Oct 9 (Reuters) - U.S. manufacturers spent 25.8 percent more on machine tools in August than in July, two trade groups said in a report released on Sunday. The American Machine Tool Distributors' Association (AMTDA) and the Association for Manufacturing Technology (AMT) said manufacturers paid $286.86 million in August, compared to $227.98 million in July, for tools that shape metal used in products such as car engines and refrigerators.
August demand was also 38.1 percent higher than the $207.69 million spent in August 2004.
July demand amount was revised downward from the $250.11 million previously reported.
Total January-to-August demand stood at $1.975 billion, up 16.2 percent from $1.699 billion in the first eight months of 2004.
Demand for these tools can provide a leading indicator of the pace of manufacturing, as it reflects how much industries are investing in production equipment.
Tool orders fell in only one geographic region in August, the South. The small monthly decline of 1.3 percent could be attributed to August's Hurricane Katrina, which decimated parts of Louisiana, Alabama and Mississippi, said John B. Byrd III, AMT president. As the region recovers from the record-breaking hurricane, he said, tool demand might increase.
"It's clear that, in the storm's wake, we will likely experience an increase in manufacturing capacity needs driven by the reconstruction effort in the South," he said in a statement.
August tool demand rose in the four other regions highlighted in the report. The Central region saw the biggest gain, with demand spiking 60.3 percent, followed by 41.8 percent in the West. In the Northeast, consumption rose by 36.5 percent, while the Midwest saw the smallest increase, 10.6 percent, according to the report.
On Oct. 7 the Labor Department reported a 27,000 decline in U.S. September manufacturing jobs. September marked a fourth straight month of job declines for the sector.
The machine tools report is generally based on a survey of about 200 manufacturers, distributors and importers of machine tools that represent 76 percent of the machine tool market.
VERY sweet!
Indeed. Here's another interesting point from a friend in the paper industry: watch the orders for corrugated cardboard. When they go up, more shipping is planned...
Either we're makin' more stuff, or that new machinist on mill #4 is an idiot and is breaking tools faster than we can replace them!! :-)
What if America is making more tools because someone else is doing more manufacturing? Is this a possibility? Or are these figures excluding export figures?
Production machines are in peak demand in countries like China and India. Are these tools going there too?
Bush's fault!
(Someone had to say it)
Machine tool controls are not machine tools.
Good news, but does not necessarily mean production went up
With the increases in oil, newer machines cost more money, and sellers must have taken a dump when oil went up, so, since oil is starting to go down again, this might mean a quick sale of last month's inventory
Also, could just be upgrading, not increasing existing.
Unless you are in the company that bought, all we are doing is speculating, not analysing.
Let's hope it is the good sign!
Interesting question. Are we manufacturing more because others are manufacturing more?
Is this just an anomaly of the Bush initiated and guided hurricanes??? (/silliness)
TO answer that question a check of Kennemetal's or even MSC's quarterly profits is in order.
It was all in Bush's grand plan for global warming...brilliant!
Fanuc now controls perhaps 80% of the worldwide market for CNC controls. If you use a Fanuc control you must also use a Fanuc servo ampfliers and servo motors. These are the most expensive parts of a machine tool.
Cincinnati Lamb, Monarch, Haas, G&L, Fadal are a few that are still made in US.
I'll be patient as well. If an American company buys a Fanuc-controlled machine tool, then that American company is building sh**.
This is as much "good news" as getting back that penny back on the Burger King 99 cent burger.
Hilarious. An "expert" chimes in.
Hey guys...thanks. Your postings have opened up a whole new world for me. I never even heard of Fanuc before tonight.
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