Metalforming manufacturing companies anticipate a slight decline in business conditions during the next three months, according to the October 2017 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report is an economic indicator for manufacturing, sampling 108 metalforming companies in the United States and Canada.
The October report shows that 30% of participants expect an improvement in economic activity during the next three months (down from 37% in September). Another 53% forecast no change (compared to 52% the previous month) and 17% believe that economic activity will decline (up from 11% in September).
Ebbs and flows in productivity are a part of today’s manufacturing industry. Slight downturns can be caused by uncertainty over regulations from Washington or the unpredictability of available skilled workers in our communities.
Roy Hardy, PMA President
“But manufacturers are not waiting for solutions,” said PMA President Roy Hardy. “The success of this month’s Manufacturing Day events demonstrate our industry’s commitment to meeting challenges head-on. PMA members are leading the way in showcasing the best of modern manufacturing and recruiting a new generation of talented employees to overcome obstacles and seize opportunities.”
Metalforming companies also anticipate a dip in incoming orders during the next three months, with 35% forecasting an increase in orders (down from 40% in September), 47% predicting no change (up from 45% the previous month) and 18% expecting a decrease in orders (up from 15% in September).
Current average daily shipping levels declined in October. Thirty-four percent of participants report that shipping levels are above the levels of three months ago (compared to 41% in September), 45% report that levels are the same (up from 44% the previous month), and 21% report a decrease in shipping levels (up from 15% in September).
The percentage of metalforming companies with a portion of their workforce on short time or layoff dipped to 3% in October, down from 4% in September. This figure is much better than October 2016, when 12% of companies reported workers on short time or layoff.
The monthly Business Conditions Report has been conducted by PMA since 1979. Full report results are available at http://www.pma.org/public/business_reports/pdf/BCREP.pdf. 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, Fabricating Product News and 3D Metal Printing magazines.
Contact: Christie Carmigiano
Precision Metalforming Association
216-503-5716
ccarmigiano@pma.org