Metal-Cutting Machine Manufacturers Cut Prices

Manufacturers of metal-cutting machines are shearing prices amid a global slump in demand caused by lower energy prices and fewer investments in high-tech equipment.

Orders in the U.S. for computer-guided cutting machines were down 16 percent during the first half of the year compared to 2015, according to the Association for Manufacturing Technology.

At the recent biennial trade show in Chicago, machine-cutting manufacturers offered discounts, extended warranties and other incentives. Some savvy customers pitted one eager machine maker against another to secure even more concessions.

Machining businesses with exposure to the energy industry have sharply curtailed their equipment purchases in the past two years because of lower prices for oil and natural gas. Markets for construction, mining and farm machinery also have been under pressure because of slumping prices for grain and mined commodities.

The aerospace industry, medical equipment manufacturing and car makers remain pockets of strength for machinery builders.

Source: Wall Street Journal