Rockville, MD. —December U.S. machine tool consumption increased 11.7 percent from November, according to the United States Machine Tool Consumption report. The total December tool consumption was $162.37 million. This is down 46 percent from $300.51 million in December 2000. Year-end-totals for 2001 are $2.64 billion which is a decrease of 34.1 percent compared to 2000 and a 55 percent decline over the peak in 1997. These figures are compiled through the joint efforts of The Assn. for Manufacturing Technology and the American Machine Tool Distributors' Assn. and reflect actual data reported by companies participating in the USMTC program.

Despite some signs of an economic recovery, both AMT and AMTDA have indicated the need for an economic stimulus package to revitalize the economy.

"We will get out of this downturn," said AMTDA president Ralph Nappi. "The issue is, how quickly will the economy recover?"

There have been considerable layoffs in the industry and some businesses are finding it difficult to hang on, he said.

"It is pretty dismal for machine tool sales right now," said Nappi. "Capital equipment investment falls off when the general economy falters."

Nappi said machine tool sales have declined steadily since 1998. The only good news is that the industry is at the bottom and there will be six to eight percent growth in 2002, he added.

"Unfortunately most of the growth will come at the end of 2002," said Nappi. "Manufacturing currently has excess capacity and it will take up to three quarters after the manufacturing economy recovers to utilize the capacity and show an uptick in machine tool consumption."