MT Magazine March/April 2026

10

MANUFACTURING MATTERS

THE STATE OF ADDITIVE ISSUE

ADVOCACY Manufacturing Remains in Focus in Washington

To start the year, the White House and Congress are continuing a manufacturing-first push to rebuild the defense industrial base. Enacted last December, the 2026 National Defense Authorization Act reinforces that direction by prioritizing investment in the foundational manufacturing inputs that underpin defense readiness, including machine tools, castings, forgings, and advanced manufacturing equipment. One notable step is the creation of a Civil Reserve Manufacturing Network, modeled after the Civil Reserve Air Fleet, designed to better integrate commercial manufacturers into defense planning and ensure rapid access to production capacity during national emergencies. AMT is actively engaging with administration officials as this approach takes shape. On the funding side, congressional appropriations track with these priorities, directing resources toward munitions, shipbuilding, and industrial base programs that send clearer demand signals to manufacturers. Together, these actions reflect a growing recognition in Washington that lasting defense strength depends on sustained investment in America’s manufacturing backbone – not just finished systems but the machines and capabilities that make them possible.

INTELLIGENCE Where Momentum Meets Investment

The story of manufacturing in 2026 is not one of caution – it is one of acceleration. December closed with the highest monthly manufacturing technology orders ever recorded, capping a year in which manufacturing technology orders reported to the U.S. Manufacturing Technology Orders program finished more than 22% above 2024 totals. After a period of adjustment, the fundamentals are strengthening in tandem: Manufacturing productivity in the third quarter of 2025 climbed 3.3% from its 2022 low; durable goods orders through November 2025 ran nearly 8% ahead of last year, and the ISM Purchasing Managers’ Index has surged back into expansion territory at 52.6 in January. Capital flows tell an equally compelling story. Net exports of capital goods have averaged more than $18 billion in recent months, reflecting strong global demand and renewed momentum in U.S.-produced equipment. At the same time, trillions of dollars in investment commitments announced by the Trump administration – including $1.6 trillion tied to companies engaged with IMTS – signal a substantial reinvestment cycle forming just over the horizon. If even a modest share of those commitments translates into capital spending, the result would be billions of dollars in additional annual equipment investment – enough to rival, and potentially nearly double, recent machine tool order levels. The momentum is not speculative; it is measurable, and it is building.

Durable Goods Orders Rolling 12-Month Percent Change (vs. Previous 12 Months)

10%

8%

6%

4%

2%

0%

-2%

-4%

Jul-25

Jul-24

Jan-25

Jun-25

Oct-25

Jan-24

Jun-24

Mar-25

Apr-25

Oct-24

Mar-24

Apr-24

Feb-25

Sep-25

Dec-25

Sep-24

Feb-24

Nov-25

Dec-24

May-25

Aug-25

May-24

Nov-24

Aug-24

Source: U.S. Census Bureau: M3 Reports