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Metal forming companies expect slight downturn

Metal forming companies expect a slight downturn in business conditions during the next three months, according to the March 1, 2007, Precision Metalforming Association (PMA) Business Conditions Report. Conducted monthly, the report is an economic indicator for manufacturing, sampling 162 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, 28 percent of participants reported that conditions will improve (down from 32 percent in February), 57 percent predict activity will remain the same (compared to 58 percent the previous month) and 15 percent anticipate a decline in business conditions (up from 10 percent in February).

Metal forming companies also expect a dip in incoming orders during the next three months. Forty percent of respondents forecast an increase in orders (down from 45 percent in February), 41 percent predict no change (compared to 39 percent last month) and 19 percent anticipate a decrease in orders (up from 16 percent in February).

Current average daily shipping levels compared to the past three months also dropped slightly in March. Thirty-five percent of companies reported that shipping levels are above levels of three months ago (down from 37 percent in February), 37 percent reported no change (compared to 40 percent in February) and 28 percent reported that March shipping levels are below levels of three months ago (compared to 23 percent the previous month).

The number of metal forming companies with a portion of their work force on short time or layoff remained steady, as 16 percent reported workers on short time or layoff in March, compared to 17 percent in February.