Metal forming companies anticipate slight improvement

According to the May 1, 2007, Precision Metalforming Association (PMA) Business Conditions Report, metal forming companies anticipate a slight improvement in general business conditions and incoming orders during the next three months, but report more of their workers on short time or layoff, as well as a decline in daily shipping levels. Conducted monthly, the report is an economic indicator for manufacturing, sampling 158 metal forming companies in the U.S. and Canada.

When asked what they expect the trend in general economic activity to be over the next three months, 31 percent of participants reported that conditions will improve (up from 25 percent in April), 50 percent predict activity will remain the same (compared to 56 percent the previous month) and 19 percent anticipate a decline in business conditions (the same percentage reported in April).

Metal forming companies predict that incoming orders will improve slightly during the next three months. Thirty-seven percent of respondents forecast an increase in orders (up from 34 percent in April), 42 percent expect no change (compared to 46 percent last month) and 21 percent anticipate a decrease in orders (up from 20 percent in April ).

However, current average daily shipping levels compared to the past three months dipped in May. Only 32 percent of companies reported that shipping levels are above levels of three months ago (down from 40 percent in April), 46 percent reported no change (compared to 40 percent in April) and 22 percent reported that May shipping levels are below levels of three months ago (compared to 20 percent the previous month).

The number of metal forming companies with a portion of their workforce on short time or layoff climbed to 24 percent in May, compared to 20 percent in April and 16 percent in March.