MT Magazine November/December 2025

THE INDUSTRY OUTLOOK ISSUE

MANUFACTURING MATTERS

10

ADVOCACY

New Bill Expands Financing for Small Manufacturers The Made in America Financing Act, introduced in the House and Senate, proposes to double Small Business Administration (SBA) loan limits for small U.S. manufacturers. This critical expansion will raise maximum access to capital to $10 million, empowering companies to make significant long-term investments. This expanded funding is designed to allow small businesses to quickly modernize equipment, invest heavily in new automation technologies, and ultimately scale their production capacity. The primary goal of this legislation is to serve as a lifeline for manufacturers facing tight margins, strengthening domestic manufacturing and supporting quality, good-paying jobs across the country. To ensure financial integrity and accountability, the bill mandates that the SBA inspector general will thoroughly review loan performance after one year. The agency will then report annually to Congress on the program’s tangible results, specifically documenting job creation and retention.

INTELLIGENCE

Machine Tool Market Outlook Tied to Automation Over the past five years, the U.S. machine tool market has experienced a marked rise in automation adoption. As improvements in machine precision become increasingly incremental and costly, suppliers and integrators are turning to automation as a key differentiator – delivering more value through productivity for manufacturers. This trend shows no signs of slowing. In August 2025, the U.S. Manufacturing Technology Orders (USMTO) program recorded the highest per-unit average value in its history at over $287,000. While rising input costs and tariffs have likely contributed to the rise in machine tool prices, the sustained gap between the USMTO average unit value and the producer price index (PPI) for metal-cutting tools highlights a deeper shift. The divergence suggests that more value is being added through automation and integration services beyond the machine’s base cost. Given the continued widening gap between the two series, the outlook for machine tool industry orders looks like it will be driven by the continued adoption of automation.

Index of Average Order Value and Producer Price Index for Machine Tools

180

Machine Automation Accelerates

160

140

120

100

80

60

Jan-18

Jan-19

Jan-20

Jan-21

Jan-22

Jan-23

Jan-24

Jan-25

Sep-18

Sep-19

Sep-20

Sep-21

Sep-22

Sep-23

Sep-24

May-18

May-19

May-20

May-21

May-22

May-23

May-24

May-25

January 2019 = 100

Source: AMT , USMTO, Bureau of Labor Statistics

USMTO Avg. Value

PPI of Cutting Machine Tools