2017 was a strong year for the country’s manufacturing industry, especially the technology subsector. According to research from the Association of Manufacturing Technology (AMT), manufacturing technology companies received 8% more orders in 2017 compared to 2016. Furthermore, the collective total for all manufacturing technology orders placed in 2017 was $4.5 billion, attesting to its strength.
These findings suggest the manufacturing technology subsector is expanding. In its report, AMT says all signals point towards “significant expansion.” When speaking about the report, AMT President Douglas K. Woods explained that the only real challenge faced by manufacturing technologies is the ability to deliver products fast enough. There’s plenty of demand for manufacturing technology products, the only problem is trying to fulfill the demand. With China’s and Europe’s manufacturing sectors as well, some U.S. manufacturing companies are struggle to meet the ever-growing demand for their products.
“The year ended as market growth looks to pick up speed in the first quarter of 2018 with the only constraint to growth being builders ability to deliver product fast enough,” said AMT President Douglas K. Woods. “This has been exacerbated by recent rebounds in both the EU and Chinese manufacturing sectors significantly increasing the demand side of the equation.”
November was a particularly strong month for the U.S. manufacturing technology subsector. According to the AMT, orders totaled $425.97 million in November 2017. To put that number into perspective, that’s a 19% increase from November 2016. One of the reasoned cited for growth is the new tax law. Under the new tax law, manufacturing companies will pay lower rates while also being able to take advantage of research and development tax credits to further improve and optimize their operations.
Now that we’re well into 2018, it’s safe to assume these predictions are accurate. The U.S. manufacturing technology subsector has experienced strong growth thus far in 2018, with companies reporting increased sales from the year prior.
So, what is manufacturing technology exactly? As explained by the AMT, manufacturing technology refers to the tools used by manufacturing companies to produce goods. From heavy machinery to automated systems and 3D printers, they allow manufacturing companies and workers to turn raw materials into finished products. Manufacturing technology plays an important role in the U.S. manufacturing industry, with all manufacturing companies using it to some degree.
Examples of manufacturing technology include software, computers, laser process equipment, cold and hot forming equipment, drills, boring bars, conveyors, material handling devices, flexible manufacturing systems (FMS) and more.