Great Question: A Manufacturing Podcast Manufacturing Technology Demand in 2026 (American Machinist)
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Jan 21, 2026 Chris Chizik, principal economist at AMT, provides data-driven analysis of manufacturing technology orders and sector trends. He discusses CNC machine orders as a growth signal. He highlights 2025 as an inflection toward rising demand. Topics include interest rate effects, rising order values from automation, shifting job shop patterns, and hot sectors like aerospace and electrical energy.
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Orders Predict Manufacturing Momentum
- Manufacturing technology orders reliably predict near-term industrial activity across sectors.
- 2025 appears to be an inflection point with demand turning up after two years of decline.
How Fed Policy Reaches Manufacturing
- The Fed targets maximum employment and price stability and uses interest rates to influence demand.
- Monetary policy works mainly through demand channels and affects equipment purchases indirectly via financing costs.
Rate Cuts Versus Fiscal Impact
- The 2025 rate cuts likely kept demand on a glide path but were cautious because the neutral rate is uncertain.
- Fiscal policy (the mid‑year tax and spending bill) had a more direct impact on manufacturing technology investment.