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Stampers expect little change in next three months

According to the May 2008 Precision Metalforming Association (PMA) Business Conditions Report, metal forming companies expect little change in business conditions during the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 149 metal forming companies in the U.S. and Canada.

When asked what the trend in general economic activity will be during the next three months, metal formers expect conditions to remain virtually the same. Fourteen percent of participants reported that activity will improve (the same percentage as April), 36 percent predicted a decline in business conditions (up from 34 percent in April) and 50 percent expect activity to remain the same (compared to 52 percent the previous month).

Metal forming companies also expect little change in incoming orders during the next three months. Twenty-four percent of companies forecast an increase in orders (down from 25 percent in April), 46 percent anticipate no change (up from 41 percent last month) and 30 percent expect a decrease in orders (compared to 34 percent in April).

Current average daily shipping levels declined in May. Thirty-six percent of participants reported that shipping levels are below levels of three months ago (up from 32 percent in April), 44 percent reported no change (up from 39 percent last month) and only 20 percent reported that shipping levels are above levels of three months ago (compared to 29 percent in April).

The number of metal forming companies with a portion of their work force on short time or layoff improved slightly in May. Twenty-two percent of companies reported having a portion of their work force on short time or layoff in May, down from 25 percent in April.