Machine Tool Orders Jump on Foreign Buy

Orders for machine tools, used to make most manufactured goods from sewing machines to weaponry, rose 8.9% to $289.45 million in April from March levels as recession fears abated, the Assn. for Manufacturing Technology said Monday.

April was the second-straight month that tool orders increased and reversed a decline that began in September, 1989. The April total represented a rise of 19.3% from year-ago levels.

But the increase was primarily because of a large foreign order placed with Cross & Trecker Corp., a large machine tools and accessories company based in Bloomfield Hills, Mich.

In its monthly report, the trade association for the machine tool industry said April tool shipments dropped 10.6% from a year ago to $258.20 million but were up 3.5% from a year ago.

Foreign orders totaled $24.55 million in April, a 67.8% drop from the $76.30 million reported in March.

“The writing is on the wall; to stay competitive, U.S. manufacturers must invest in the most modern equipment that they can afford,” said Albert Moore, president of the association.

Total orders for metal-forming tools rose 22.1% last month to $82.60 million from March’s $67.65 million total.