Optimistic Forecast for Machine Tool Orders Begins to Materialize
New orders of metalworking machinery, measured by the U.S. Manufacturing Technology Orders Report published by AMT -- The Association For Manufacturing Technology, totaled $389.9 million in February 2025, a 9.9% increase from January and a 12.5% increase from January 2025.
Through the first two months of the year, orders totaled $744.74 million, an 8.8% increase over the first two months of 2024.
Through the first two months of 2025, it seems as if the optimistic forecast for machine tool orders had begun to materialize. In addition to the uptick in the value of machinery ordered, unit sales have rebounded in 2025. For much of 2024, growth in the number of units sold lagged the increase in the total value of orders. That trend has reversed in 2025, with the number of units ordered 9.6% above the first two months of 2024.
In response to the new tariff regime announced by the Trump administration at the beginning of April, many forecasters downgraded their expectations for 2025 growth as uncertainty grew. Amid this environment, many major stock indices experienced declines. Since the stock market reflects expectations of future corporate profitability, the observed declines could be interpreted as waning confidence in future demand from consumers.
In an alternate interpretation, companies may not be able to pass the full cost of inputs on to customers after an extended bout of inflation has increased business and consumer price sensitivity. In this scenario, manufacturers who invest in newer, more efficient technologies could help recoup some of that lost profit margin through cost-saving process improvements.
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