U.S. machine tool demand plunged nearly 23 percent to its lowest annual level on record in 2002 as overcapacity and competition overseas reduced consumption for U.S. manufacturing equipment, two industry groups said on Sunday in a joint report.
The American Machine Tool Distributors' Association and the Association for Manufacturing Technology said total 2002 demand for manufacturing equipment fell to U.S. $2.060 billion, down 22.8 percent, from $2.669 billion in 2001. However, December consumption rose 45.5 percent to $198.19 million from November's $136.18 million.
Even if the economy manages to regain its footing, the industry groups said machine tool demand will continue to drag because many businesses already possess a glut of capacity leftover from the go-go days of the 1990s. (Reuters)
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