How Will Market Conditions Affect IMTS 2018?

For the past couple of years, the U.S. market for machine tools has performed extremely well. Orders were up strongly in 2017, and in 2018 to-date, machine tool orders are up by double digits. As a global corporation, Okuma has responded by listening closely to our needs here at Okuma America and allocating more production to fulfill the demands of our active market. With September just around the corner, it’s worthwhile to consider: how will these market conditions affect all of us at the upcoming IMTS 2018 show?

Purchasing Dynamics are Different

First, rest assured that Okuma America is bringing a large number of machine tools into the U.S. to satisfy demands generated at the show. This won’t always mean immediate delivery is possible, but we’ve been working hard for months to bring in our orders from Japan so we can be well positioned and prepared. Nonetheless, buyers should be aware that purchasing dynamics are different than previous “IMTS years” in the following ways.

Lead Times are Extending: With more demand than supply, lead times are extending because companies are no longer selling from standing inventory. This means that buyers should change their thinking from a reactionary mode (“I need a machine for this new job I’m bringing in”) to more of a planning mode (“I plan to get jobs making X type of parts, therefore I should look for a new machine so I can add this capability”).

Bring Your Decision Maker: A typical purchasing process places engineers on the front lines. This makes good sense, as they’re responsible for part design and have a good idea of what they need to manufacture those parts. Once they find their ideal machine, they go back to the home office for approval. Keep in mind that the longer the decision-making process, the more at-risk the buyer is for not getting their desired delivery time frame. In this year’s market conditions, we recommend that all members of the decision-making team should be in attendance at the show, to avoid unwanted delays.

Be Prepared to Take Advantage of Show Specials: Another compelling reason to bring all your decision makers is that show specials will be offered by many suppliers. Make sure you bring someone with the authority to take advantage, since these offers can be limited and go to the first takers.

Take Decisive Actions

If there’s a common thread to all this, it’s a fairly simple one. In an active market, one must be prepared to take decisive purchasing actions. Our job is to help you make the most informed decisions possible that will equip you for long-term profitability with your machine tools. At this year’s IMTS we’ll have 21 machines on display, staffed with our distributors and our experts, ready to explore the possibilities for your shop. We’re ready, and we look forward to seeing you at the Okuma booth (South Hall #338500).

Lisa Rummel is CFO, Okuma America Corporation.