Manufacturers received some encouraging news Monday when the latest report on machine tool orders showed a big jump for the month of May.
The report is compiled by AMTDA, the American Machine Tool Distributors' Association, and AMT - The Association For Manufacturing Technology.
Machine tool orders surged 30 percent in May versus a year ago, and rose by 21.4 percent from April. Year-to-date, orders are up 22 percent versus the same period in 2005.
"May's growth in consumption is particularly encouraging because it is shared across every region of the country," said John J. Healy, AMTDA President. "While May was one of the four best months in the current recovery, the important point is that the trend in orders continues to be upward."
The data by region:
May manufacturing technology consumption in the Northeast Region stood at $48.01 million, up 12.6 percent from April’s $42.62 million and 32.8 percent higher than the May 2005 total. At $214.03 million, the year-to-date total was 21.4 percent higher than the 2005 total at the same time.
Southern Region manufacturing technology consumption in May totaled $39.22 million, up 25.2 percent when compared with April’s $31.33 million, and 8.2 percent higher than the total for May a year ago. The year-to-date total of $197.67 million was 3.7 percent less than the comparable figure last year.
At $93.54 million, May Midwestern Region manufacturing technology consumption was 38.6 percent higher than April’s $67.47 million and 3.8 percent higher than the May 2005 total. The $426.58 million year-to-date total was 5.2 percent more than the 2005 total at the same time.
Central Region manufacturing technology consumption in May rose to $82.48 million, up 7.3 percent from April’s $76.90 million and 61.2 percent higher than the May total last year. Year-to-date 2006 consumption reached $369.24 million, 56.7 percent higher than last year’s comparable figure.
Totaling $56.16 million, May manufacturing technology consumption in the Western Region was 25.2 percent higher than April’s $44.87 million and 71.9 percent more than the May 2005 total. With a year-to-date total of $229.60 million, 2006 was running 48.3 percent ahead of 2005 at the same time.
Meanwhile, Parker Hannifin late Friday reported year-over-year order increases for June in its Industrial, Aerospace and Climate and Industrial Control segments.
Caris & Co. analyst Mary Anne Sudol notes that U.S. durable goods orders rose by 9.5 percent year-over-year for the first five months of the year, and new orders received by U.S. companies rose faster than shipments.
"This strength supports sales and earnings prospects for companies in our industrial coverage universe," she said, including GE, Boeing, Ladish, Rockwell Collins, ITT, Eaton, Honeywell, Danaher, Kennametal, Woodward Governor and Rockwell Automation.