https://www.assemblymag.com/rss/2658-capital-spending en-us sprovierij@bnpmedia.com (John Sprovieri) Suppliers of assembly technology are optimistic about 2026.

]]> http://www.assemblymag.com/articles/99692 Mon, 08 Dec 2025 09:00:00 -0500 https://www.assemblymag.com/articles/99692-us-manufacturers-make-big-plans-in-2025 sprovierij@bnpmedia.com (John Sprovieri) With the election in the rearview mirror, assemblers are poised to invest in their operations again.

]]> http://www.assemblymag.com/articles/98930 Wed, 04 Dec 2024 09:00:00 -0500 https://www.assemblymag.com/articles/98930-2024-capital-spending-survey-spending-levels-off sprovierij@bnpmedia.com (John Sprovieri) Despite inflation concerns and lingering supply chain issues, manufacturers are investing in their assembly operations.

]]> http://www.assemblymag.com/articles/98172 Mon, 04 Dec 2023 09:00:00 -0500 https://www.assemblymag.com/articles/98172-2023-capital-spending-survey-assemblers-continue-to-invest sprovierij@bnpmedia.com (John Sprovieri) U.S. manufacturers have faced significant headwinds this year: supply chain problems, a skilled labor shortage, inflation, and the war in Ukraine. And yet despite these issues—or perhaps, because of them—manufacturers continued to invest in people, plants and equipment.

]]> http://www.assemblymag.com/articles/97486 Thu, 01 Dec 2022 00:00:00 -0500 https://www.assemblymag.com/articles/97486-capital-spending-survey-2022-assemblers-continue-to-invest In February 2020, U.S. manufacturers employed nearly 12.8 million people. Then came the COVID-19 pandemic. In an instant, the country lost 1 million manufacturing jobs as governments and businesses scrambled to figure out how best to stop the spread of the disease.

]]> http://www.assemblymag.com/articles/96780 Tue, 07 Dec 2021 14:17:00 -0500 https://www.assemblymag.com/articles/96780-capital-spending-survey-assemblers-gear-up-for-recovery Capital Spending Survey: Assemblers Gear Up for Recovery Machinery manufacturers will spend, on average, $2.7 million on assembly technology in 2022, twice the average from 2021. Photo courtesy Deere & Co. Capital Spending Survey: Assemblers Gear Up for Recovery Some 62 percent of automotive assemblers will spend more next year than they did this year. That compares with 43 percent for the nation as a whole, and it’s the highest percentage of any industry. Photo courtesy DENSO Corp. Capital Spending Survey: Assemblers Gear Up for Recovery For only the second time in survey history, the South will account for the majority of spending on assembly technology. Capital Spending Survey: Assemblers Gear Up for Recovery The pandemic has hurt smaller manufacturers more than larger ones. Next year, companies with more than 250 employees will account for more than three-fourths all spending, while companies with less than 100 workers will represent just 5 percent. Capital Spending Survey: Assemblers Gear Up for Recovery For the fifth straight year, assemblers of products smaller than a 12-inch cube will represent the lion’s share of total spending next year. Capital Spending Survey: Assemblers Gear Up for Recovery Appliance assemblers will account for just 3 percent of total spending next year. That’s the lowest share for this industry in survey history. Capital Spending Survey: Assemblers Gear Up for Recovery Some 45 percent of plants will spend at least $500,000 on assembly technology next year—a record high. Capital Spending Survey: Assemblers Gear Up for Recovery Just 59 percent of assemblers—a record low—say that direct labor costs will be an issue next year. However, that could change if factories are forced to increase wages to attract workers. Capital Spending Survey: Assemblers Gear Up for Recovery Assemblers had plenty of capacity during the height of the pandemic. Now, with the economy recovering, assemblers are ramping up production. Some 56 percent of plants will buy equipment next year to increase output. That compares with 43 percent in 2021, and it’s the second highest percentage since 2000. Capital Spending Survey: Assemblers Gear Up for Recovery Some 43 percent of respondents will spend more on assembly technology next year than they did this year. It’s the fourth time in the past five years in which that figure has topped 40 percent. Capital Spending Survey: Assemblers Gear Up for Recovery For the fourth time in five years, replacing old or worn-out machines is the No. 1 reason for buying new equipment. Some 56 percent of plants—a record high—plan to do so next year. Capital Spending Survey: Assemblers Gear Up for Recovery Forty-three percent of assemblers—a record high—report that material costs are a major concern for the coming year. Capital Spending Survey: Assemblers Gear Up for Recovery sprovierij@bnpmedia.com (John Sprovieri) http://www.assemblymag.com/articles/96026 Fri, 04 Dec 2020 09:00:00 -0500 https://www.assemblymag.com/articles/96026-capital-spending-survey-cautious-optimism Capital Spending Survey: Cautious Optimism Machinery manufacturers will spend, on average, $635,263 on assembly technology in 2021, which is 13 percent less than the industry’s average budget in 2020. PHOTO COURTESY CATERPILLAR INC. Capital Spending Survey: Cautious Optimism The Northeast will account for 19 percent of total spending next year. That’s the most for this region since 2019. Capital Spending Survey: Cautious Optimism The pandemic has hurt smaller manufacturers more than larger ones. Next year, companies with more than 250 employees will account for three-fourths all spending, while companies with less than 100 workers will represent just 14 percent. Capital Spending Survey: Cautious Optimism Electronics assemblers will account for 11 percent of total spending next year. That’s the most for this industry since 2018. Capital Spending Survey: Cautious Optimism For the fourth straight year, assemblers of products smaller than a 12-inch cube will represent the lion’s share of total spending next year. Capital Spending Survey: Cautious Optimism Some 32 percent of respondents will spend more on assembly technology next year than they did this year. On the one hand, that percentage has now topped 30 percent for 11 consecutive years. On the other, it’s the smallest percentage since 2015. Capital Spending Survey: Cautious Optimism Depending on the industry, the average machine in a U.S. manufacturing facility ranges from 6.6 to 11 years old. Small wonder, then, that 53 percent of assembly plants will replace old or worn-out machinery next year. SOURCE: U.S. BUREAU OF ECONOMIC ANALYSIS Capital Spending Survey: Cautious Optimism Just 43 percent of assemblers are looking to increase capacity in 2020. That compares with 60 percent in 2020, and it’s the lowest percentage since 2017. Capital Spending Survey: Cautious Optimism Given their smaller budgets, small companies are more apt to keep equipment longer than larger companies. Oddly, assemblers of small products are more likely than assemblers of large ones to replace old machinery. Capital Spending Survey: Cautious Optimism Some 22 percent of plants will spend at least $1 million on assembly technology next year. It’s the third straight year in which that percentage has exceeded 20 percent. sprovierij@bnpmedia.com (John Sprovieri) http://www.assemblymag.com/articles/95337 Mon, 09 Dec 2019 08:00:00 -0500 https://www.assemblymag.com/articles/95337-assembly-capital-spending-report-2019-manufacturers-continue-to-invest-in-technology sprovierij@bnpmedia.com (John Sprovieri) http://www.assemblymag.com/articles/94582 Thu, 06 Dec 2018 13:25:00 -0500 https://www.assemblymag.com/articles/94582-assembly-capital-spending-report-2018-spending-increases-due-to-economic-growth-and-tax-cuts ASSEMBLY Capital Spending Report: Capital Spending to Increase Transportation equipment assemblers will spend, on average, $1.2 million on assembly technology next year. Photo courtesy Lear Corp. ASSEMBLY Capital Spending Report: Capital Spending to Increase The West will account for 18 percent of all spending on assembly technology next year. That’s the most for the region in four years. ASSEMBLY Capital Spending Report: Capital Spending to Increase Midsized companies—those with 101 to 250 employees—will account for just 12 percent of total spending on assembly technology next year. ASSEMBLY Capital Spending Report: Capital Spending to Increase For the first time since 2016, assemblers of products larger than a 6-foot cube will represent the lion’s share of total spending next year. ASSEMBLY Capital Spending Report: Capital Spending to Increase Miscellaneous manufacturing, which includes assemblers of medical devices and consumer products, will account for 26 percent of total spending in 2019. That’s the most for this industry since 2015. ASSEMBLY Capital Spending Report: Capital Spending to Increase Almost half—48 percent—of respondents of assembly plants will spend more on assembly technology in 2019 than they did in 2018. Only 12 percent plan to spend less. Both numbers are records. ASSEMBLY Capital Spending Report: Capital Spending to Increase Thirty-five percent of assembly plants are looking to lower material costs next year. That’s a record high, and it’s the seventh straight year in which that percentage has been 25 percent or more. ASSEMBLY Capital Spending Report: Capital Spending to Increase Some 51 percent of assembly plants are looking to increase capacity in 2019. That compares with 47 percent in 2018, and it’s the highest percentage since 2001. ASSEMBLY Capital Spending Report: Capital Spending to Increase Aggregate budget data indicate a healthy increase in spending for 2019. For example, 35 percent of plants have capital budgets of at least $500,000. That compares with 25 percent in 2018, and it’s the highest percentage since 1998. ASSEMBLY Capital Spending Report: Capital Spending to Increase With unemployment at 3.7 percent and 488,000 manufacturing jobs going unfilled, automation is becoming more important and manual assembly is decreasing. ASSEMBLY Capital Spending Report: Capital Spending to Increase Given increased demand for IIOT functionality and other features, used or rebuilt equipment may not be as popular as it once was. Next year, assemblers will allocate, on average, just 24 percent of their capital budgets to used equipment. That’s the lowest ratio since 2003. sprovierij@bnpmedia.com (John Sprovieri) U.S. manufacturing continued to roll in 2017. Want proof? Look no further than Toyota Motor Corp. In September, the world’s largest automaker announced that it will invest $374 million at five U.S. factories.

]]> http://www.assemblymag.com/articles/94061 Fri, 01 Dec 2017 13:00:00 -0500 https://www.assemblymag.com/articles/94061-assembly-capital-spending-report-2017-capital-spending-continues-to-increase 1 Transportation equipment assemblers will spend, on average, $2.3 million on assembly technology next year. Photo courtesy BMW 2 The Midwest will account for 53 percent of all spending on assembly technology next year. That’s the largest percentage for the region since 2013. 3 For the second straight year, midsized companies—those with 101 to 200 employees— will account for the lion’s share of total spending on assembly technology. 4 The fabricated metal products industry will account for just 4 percent of total spending in 2018. That’s the lowest share for the industry in survey history. 5 Assemblers of products that can fit inside a 12-inch cube will represent 41 percent of total spending next year. That’s the most for this category since 2014. 6 One-third of assembly plants are looking to lower material costs next year. That’s a record high, and it’s the sixth straight year in which that percentage has been at least 25 percent. 7 Some 42 percent of respondents will spend more on assembly technology next year than they did this year. That marks the eighth straight year that the “we’ll spend more” percentage has been above 30 percent, and it’s the highest such percentage since 2001. 8 Aggregate budget data indicate a healthy increase in spending for 2018. For example, 25 percent of plants have capital budgets of at least $500,000. That’s the highest percentage since 2009. 9 Compared with other industries, manufacturers of medical devices are more worried about aging machinery. Fifty-nine percent of plants in the medical device industry will buy equipment next year to replace old or worn-out equipment. That percentage has been above the national ratio for the past four years. 10 Only 29 percent of plants will buy equipment next year to assemble a new product. That’s the fifth time in the past six years in which that ratio has been below 30 percent. 12 Could U.S. assemblers be feeling pinched? Forty-seven percent of factories will buy equipment next year to increase capacity. That’s the highest since 2007. 13 Assemblers are less and less interested in building their own assembly systems. Next year, engineers will fulfill, on average, just 36 percent of their system needs with equipment built in-house. That’s the lowest percentage in 19 years. 14 With the prospect of sustained, if modest, growth over the next few years, assemblers may be taking a longer term view on capital equipment investment. Next year, just 15 percent of plants have an ROI period of less than 12 months—the lowest percentage in survey history. 15 Given rapid advances in technology, used or rebuilt equipment may not be as popular as it once was. Next year, assemblers will allocate, on average, just 32 percent of their capital budgets to used equipment. That’s the lowest ratio in a decade. 16 As more and more manufacturers bring work back from overseas, automation is becoming more important and manual assembly is decreasing. sprovierij@bnpmedia.com (John Sprovieri) Overall, 2016 has been a pretty good year for U.S. manufacturing. In every industry covered by ASSEMBLY magazine, manufacturers were investing in people, plants and equipment.

]]> http://www.assemblymag.com/articles/93648 Thu, 01 Dec 2016 01:00:00 -0500 https://www.assemblymag.com/articles/93648-assembly-capital-spending-report-capital-spending-to-increase 1 The automotive industry continues to drive growth in capital equipment spending. Transportation equipment manufacturers will account for 30 percent of total spending next year. Photo courtesy Faurecia 2 The Northeast will account for 28 percent of total spending this year. That’s the highest share for the region since 2012. 3 As usual, the country’s largest assembly plants have the deepest pockets and the rosiest outlook. Companies with more than 100 workers will account for 88 percent of total spending next year. 4 For the seventh time in the past decade, transportation equipment manufacturers will spend more on assembly technology than any other industry. 5 Manufacturers of small products (anything that can fit inside a 12-inch cube) will account for just 7 percent of total spending next year— the smallest share for that segment in the survey history. 6 Thirty-one percent of plants will buy equipment next year to mitigate material costs. That’s the highest percentage in the history of our survey. 7 Assemblers are increasingly concerned about the cost of scrap. Next year, 40 percent of plants will buy equipment to lower scrap costs, the most since 2013. 8 Assemblers are increasingly investing in single-station assembly machines: presses, automatic riveters, and automatic screwdriving equipment. Fifty percent of plants will purchase such equipment next year, the most since 2011. 9 For the first time this year, we asked about energy costs. One industry stood out: 44 percent of manufacturers of appliances and electrical equipment said that they were buying equipment to reduce their energy costs. That’s more than twice the percentage for all U.S. factories. 10 Over the past three years, machinery manufacturers have been more concerned about labor costs than other manufacturers. Next year, 79 percent of machinery makers will buy equipment to reduce labor costs, compared with 72 percent for all U.S. plants. In contrast, medical device manufacturers have been less concerned about labor costs. 11 Compared with other industries, manufacturers of fabricated metal products and transportation equipment are more concerned about indirect labor costs, such as setup and maintenance. Next year, 64 percent of fabricated metal products factories and 53 percent of transportation equipment factories will invest in equipment to reduce indirect labor costs. Both percentages are higher than the national ratio. 13 Compared with other industries, manufacturers of fabricated metal products seem to have plenty of capacity. Only 29 percent of plants in this industry will buy equipment next year to increase capacity. That’s well below the national percentage. In fact, the industry has been below the national percentage for the past six years. 14 Only 16 percent of respondents will spend less in 2017 than they did 2016—an all-time low for our survey. 15 sprovierij@bnpmedia.com (John Sprovieri) With automotive and aerospace manufacturing going strong, our annual Capital Equipment Spending Survey predicts continued growth in investment.

]]> http://www.assemblymag.com/articles/93144 Mon, 07 Dec 2015 12:00:00 -0500 https://www.assemblymag.com/articles/93144-assembly-capital-spending-report-capital-spending-to-increase sprovierij@bnpmedia.com (John Sprovieri) With the automotive and aerospace industries humming, our annual Capital Equipment Spending Survey predicts robust growth in investment.

]]> http://www.assemblymag.com/articles/92542 Wed, 03 Dec 2014 02:00:00 -0500 https://www.assemblymag.com/articles/92542-capital-spending-survey-assemblers-continue-investing sprovierij@bnpmedia.com (John Sprovieri) Economic activity in the manufacturing sector expanded in October for the fifth consecutive month, and the overall economy grew for the 53rd consecutive month, according to the latest data from the Institute for Supply Management.

]]> http://www.assemblymag.com/articles/91731 Sun, 01 Dec 2013 01:00:00 -0500 https://www.assemblymag.com/articles/91731-capital-spending-survey-assembly-plants-boost-spending-on-manufacturing-equipment sprovierij@bnpmedia.com (John Sprovieri) As usual, our annual Capital Equipment Spending Survey provided a wealth of interesting and often contradictory data. Thirty percent of plants will spend more on assembly technology next year than they did this year, and only 20 percent will spend less.

]]> http://www.assemblymag.com/articles/91726 Sun, 01 Dec 2013 00:00:00 -0500 https://www.assemblymag.com/articles/91726-keep-the-new-product-pipeline-flowing WASHINGTON—US sales of machine tools are up 5.3 percent in the first 10 months of 2012 compared with the same period in 2011, according to the AMT—The Association for Manufacturing Technology.

]]> http://www.assemblymag.com/articles/90769 Wed, 12 Dec 2012 00:00:00 -0500 https://www.assemblymag.com/articles/90769-us-machine-tool-sales-up-5-percent WASHINGTON—U.S. sales of machine tools totaled $401.69 million in January, an 8 percent increase compared with January 2011 sales.

]]> http://www.assemblymag.com/articles/89893 Tue, 13 Mar 2012 00:00:00 -0400 https://www.assemblymag.com/articles/89893-january-machine-tool-sales-up-8-percent-in-january sprovierij@bnpmedia.com (John Sprovieri) http://www.assemblymag.com/articles/89421 Fri, 18 Nov 2011 13:32:00 -0500 https://www.assemblymag.com/articles/89421-capital-spending-report-spending-on-hold