Machine Tool Orders Drop

NEW YORK January 13, 2003; The AP reported that U.S. purchases of machine tools fell 9.7 percent in November from the previous month, and dropped 4.3 percent from the same time a year ago, two industry groups reported.

Companies spent an estimated $145.52 million for machine tools in November, the Association for Manufacturing Technology and the American Machine Tool Distributors' Association said in a report released Monday.

The decrease was most pronounced in the Midwestern and Northeast regions of the country, while the Southern region saw increases.

November sales were down from $152.04 million in November 2001.

Analysts consider the demand for machine tools as a reliable indicator of the strength of the manufacturing industry and the overall productivity, since the reports provide information about the industries' investment in capital metalworking equipment.

With a year-to-date total of $1.857 billion, machine tool sales are down 25.8 percent when compared with the same period in 2001.

"The recovery of America's manufacturing base is anemic. It needs the additional stimulus that would be provided if Congress expands the President's very good Economic Growth and Jobs package to allow American manufacturers, regardless of size, to expense more of the cost of manufacturing technology investments," said Albert W. Moore, AMT president.

Compared with figures from November 2001, machine tool sales dropped 22.5 percent in the Northeast, 2.5 percent in the Central region, and 22.1 percent in the Midwest. In the West, consumption was down 8.8 percent from a year earlier while the Southern region was up 67.4 percent.