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Ford Sales Spark Hope for Manufacturing Technology Producers

But it will be some time before small companies feel the positive impact.

Association For Manufacturing Technology AMT
Wed, 08/05/2009 - 14:30
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(AMT: McLean, VA) -- Manufacturing technology suppliers reacted with cautious optimism over reports that Ford Motor Co. posted the first sales gain in two years and that U.S. manufacturing activity slowed less than expected in July. But that’s not to say that tough times are over for the manufacturing industry.

“This country’s manufacturing sector shrunk at the lowest rate in a year.  That’s hardly great news!” insists Doug Woods, president of The Association For Manufacturing Technology (AMT).  “While we hope the July numbers represent a slowdown to the free fall our members have suffered over the past year, there is still a very long road ahead before most of them breathe easier."

“The end to 19 consecutive months of decline in automotive sales that July’s sales figures represent is like a loud crack in the ice at the beginning of the spring thaw,” Woods adds. “While AMT welcomes the success of the Cash-For-Clunkers program, it can’t go on forever…. The auto industry will not turn around overnight.” 

Most experts agreed that the Ford turnaround could be largely attributed to the wildly popular Cash-For-Clunkers program.  The program, also dubbed CARS, grants consumers up to $4,500 toward a new, more fuel-efficient car or truck from a participating dealer when they trade in a less fuel-efficient car or truck.

 …

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