Production Machining Index Shows Continued Recovery
December marks fourth consecutive monthly gain as production outlook continues to surge.
The Gardner Business Index (GBI): Production Machining measures the current state of precision machining activity through survey responses covering new orders, production, backlog, employment, exports and supplier deliveries. A reading above 50 indicates expansion, and below 50 indicates contraction.
The precision machining industry registered a GBI reading of 48.0 in December 2024. Supplier deliveries showed improvement both month-over-month versus the previous year, while other components including employment and exports indicated ongoing challenges in the precision machining sector.
The GBI Components Scorecard reports the monthly change rate of primary precision machining market factors contributing to the overall monthly index reading.
Reading the Scorecard:
- Color indicates where a component value falls relative to 50 for the current month. Green indicates expansion; red indicates contraction.
- Shade indicates a value's distance from 50; the darker the shade, the further from 50.
- Direction indicates a value's change versus the previous period. Pointing up is always better.
The GBI Components Scorecard reveals an overall positive performance across key metrics in December. Supplier deliveries emerged as the strongest component, showing gains both month-over-month and versus the previous year. Employment, production, exports, new orders and backlog all registered contractions, though at improved rates compared to the previous month, suggesting optimism heading into the new year.
The GBI Future Business Index is an indicator of the future state of the precision machining market from industry respondents regarding their opinion of future business conditions for the next 12 months. Over 50 is expansion, and under 50 is contraction.
The Future Business Index surged to 71.6 in December, reaching its highest level since late 2020, suggesting significantly improved optimism about business conditions in 2025.
Find the latest precision machining market research and reporting at GardnerIntelligence.com.
