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Ready to create your strategic business plan for 2023? – Metrology and Quality news

Recently, the Association For Manufacturing Technology (AMT) MTForecast 2022 featured two days of expert presentations on economic forecasts and market data to help manufacturing technology leaders make informed business decisions. Here are the three main takeaways from the session:

The overall economic slowdown will be short-lived with a mixed impact on manufacturing

Over the next year, the recession will be moderate and will bottom out in the third quarter of 2023, followed by a sustained rebound. Machine tool production is expected to be in line with 2019 levels. Due to the backlog of orders resulting from supply chain issues, 2023 machine tool orders will not increase, but shipments will increase. Conversely, shipments and orders of machine tool accessories in 2023 will increase. Many client industries will grow, such as aerospace and transportation, while investments in accessories and molds will experience greater volatility.

Disruptions in the automotive industry create opportunities for parts manufacturers

The automotive industry is a changing landscape as major brands assess current methodologies and rethink their plans for the future. Electric vehicles have fewer parts and less complex manufacturing needs, but internal combustion engine vehicles will remain the dominant choice for the next few years. Once EV pricing and regulatory incentives are created, the tipping point in EV demand is expected around 2029.

Stagnant interest rates will reduce large capital purchases.

The Federal Reserve has provided good inflation rates for the past 40 years, allowing manufacturing in the United States to grow unabated with only modest recessions. Now the Federal Reserve is at a point where it cannot cut interest rates until inflation starts to come down. This will have the greatest impact on large machinery purchases. With the economy improving in the second half of 2023, these purchases will be slow to resume.

AMT’s MFG 2023 is planned from April 26 to 28, 2023 at Phoenix, Arizona and will allow participants to gain additional industry insights, economic forecasts, and market data to aid in the strategic planning of manufacturing technology companies.

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