Most metalforming manufacturing companies see no improvements in business conditions during the next three months, according to the May 2018 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report is an economic indicator for manufacturing, sampling 112 metalforming companies in North America.
The May report shows that 31% of participants forecast an improvement in economic activity during the next three months (down from 42% in April), 65% expect no change (up from 52% last month) and 4% anticipate a decline in activity (compared to 6% reported in April).
PMA members are feeling the pain of the Section 232 steel and aluminum tariffs, which already are having negative consequences for U.S. manufacturers.
Roy Hardy, PMA President
“The tariffs are effectively taxes that put our members and other steel- and aluminum-using U.S. manufacturers at a disadvantage to manufacturers outside the United States,” continues Hardy. “Our members are seeing steel-price spikes of more than 30 to 40 percent and lead times that are doubling or even tripling. These tariffs are not the way to grow manufacturing in the United States and PMA is working to convince Washington to terminate these tariffs as soon as possible.”
Metalforming companies also anticipate a dip in incoming orders during the next three months, with 36% predicting an increase in orders (down from 46% in April), 54% anticipating no change in orders (compared to 47% in April), and 10% forecasting a decrease in orders (compared to 7% last month).
Current average daily shipping levels declined slightly in May. Forty-six percent of participants report that shipping levels are above the levels of three months ago (down from 50% in April), 41% report that levels are the same (up from 38% the previous month), and 13% report a decrease in shipping levels (compared to 12% in April).
No metalforming companies reported workers on short time or layoff in May, down from 2% in April. At this time last year, 5% of companies reported workers on short time or layoff.
The monthly Business Conditions Report has been conducted by PMA since 1979. Read the full report results. PMA is the full-service trade association representing the $137-billion metalforming industry of North America—the industry that creates precision metal products using stamping, fabricating, spinning, slide forming and roll forming technologies, and other value-added processes. Its nearly 800 member companies also include suppliers of equipment, materials and services to the industry. PMA leads companies toward superior competitiveness and profitability through advocacy, networking, statistics, the PMA Educational Foundation, FABTECH and METALFORM Mexico tradeshows, and MetalForming and 3D Metal Printing magazines.
Contact: Christie Carmigiano
Precision Metalforming Association
216-503-5716
ccarmigiano@pma.org