Machine Tool Demand Up 16.6 Pct in August; manufacturing sector is beginning to pick up momentum

Reuters ^ | 10-12-03

[Brian S]

Sun October 12, 2003 06:11 PM ET

WASHINGTON (Reuters) - U.S. machine tool demand rose 16.6 percent in August from the prior month, two industry trade groups said in a joint report on Sunday that showed the manufacturing sector is beginning to pick up momentum.

The American Machine Tool Distributors' Association and the Association for Manufacturing Technology said U.S. August machine tool demand edged higher to $150.99 million from a revised $129.55 million in July that was reported at $157.06 million a month earlier.

August demand, however, was down 3.2 percent from $155.93 million a year earlier in August 2002.

In addition, overall tool demand in 2003 through the first eight months of the year had declined 16.1 percent to $1.226 billion from $1.461 billion in the same period a year ago, the joint report said.

Even though consumption has lagged most of the year, the trade groups said there are signs machine tool demand has begun to improve.

"August orders and increased output among many of our customers appear to be signaling an end to the decline in manufacturing technology investments," John Byrd, president of the AMT, said in a statement.

"While a capital spending recovery has not yet begun, better times certainly seem to be on the horizon," said Byrd.

Machine tools are used to shape metal for such products as car engines, refrigerators and television sets. Demand for these tools can provide a leading indicator of the pace of manufacturing.

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.

[Brian S]

:)

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[snopercod]

With a few exceptions, CNC machines are made in Japan, Taiwan, or China. How is that going to help the US economy?

[sarcasm]

August demand, however, was down 3.2 percent from $155.93 million a year earlier in August 2002.

[TaxRelief]

My money is on you starting the 1,000,000 thread. 13 to go!

[TaxRelief]

So-o-o-o? It's time to look forward Mr. Sarcasm.

[LasVegasMac]

While a capital spending recovery has not yet begun, better times certainly seem to be on the horizon," said Byrd

pssst - hey Lil' Tommy D. - over here.

Some news that will make you, "deeply concerned."

Nyuck - nyuck - nyuck.

LVM

[LiberalBuster]

This is a snippet from the Oct. 10 ValueLine I.S.: "Some cracks in the economy’s armor are starting to appear as we begin the fourth quarter. Until very recently, the business expansion had been proceeding smoothly, with both the consumer and industrial sectors exhibiting steady improvement. Now, although the housing market is still performing very well and September’s employment report was better than expected, some sluggishness has crept into the manufacturing sector; consumer confidence has fallen; and new factory orders have declined for the first time in several months."

[edwin hubble]

"How is that going to help the US economy?"

The increased purchasing of machine tool and die equipment is studied as an indicator that manufacturing will be more active in the next 6 months. No matter that the machine tools come from Japan...

[King Prout]

good news.
I hope this translates into more orders for American Machine Tools and more work for machinists and tool-and-die men.

[Ken522]

"...demand edged higher to $150.99 million from a revised $129.55 million in July that was reported at $157.06 million a month earlier."

What's that supposed to mean???

[Uncle Miltie]

Good News Bump!

[lchoro]

Financial reporting is geared toward headlines. If you report "improvement" now, it shows up in the headlines and no one cares whether your reports are off by as much as 20 percent from reality. Revising past data downward makes it easier to "make" or "break" numbers.

[ItisaReligionofPeace]

Very good.

[ItisaReligionofPeace]

The same reason that people look at housing start-ups as an indicator.

[Last Dakotan]

Yeah, but just think how much better it would be if the machine tools were made by American firms too.
I saw an article in "American Machinist" not to long ago on the AR-15/M-16 manufacturing line. Row after row of Japanese machines. Made me damn proud to be an American. /sarc

[ctonious]

With a few exceptions, CNC machines are made in Japan, Taiwan, or China. How is that going to help the US economy?

It'll do plenty. Those machines will need Fortune 500 nameplates and serial numbers stamped on, before they get shipped off to the production facilities in Mexico.

[edwin hubble]

"I saw an article in "American Machinist" not to long ago on the AR-15/M-16 manufacturing line. Row after row of Japanese machines."

I agree with you there. And when the boom comes back there will not be enought machinists in the U.S. to do the work -- even if we had the work here.

[RaceBannon]

Only if these are ore than replacement machines.

Machines get old, if these are put next to machines already running, then I would agree it is a sure sign.

Too bad there wasnt a way to confirm either way!