Growing supply-chain problems continue to challenge metal formers

Metal forming companies forecast a slight decline in business conditions during the next three months as supply-chain challenges continue to affect the manufacturing industry, according to the March 2022 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report provides an economic indicator for manufacturing, sampling 109 metal forming companies in the U.S. and Canada.

PMA’s March report shows that only 24% of metal forming companies expect an increase in general economic activity in the next three months (decreasing from 32% in February), 58% anticipate no change in activity (the same percentage reported in February), and 18% predict a decrease in activity (compared to 10% in February).

Forty-three percent of respondents reported an increase in lead times, slightly down from 46% in February. Metal formers also forecast a dip in incoming orders in the next three months, with 37% expecting an increase in orders (compared to 42% in February), 46% predicting no change (compared to 50%), and 17% anticipating a decrease in orders (compared to 8% in February).

At the same time, none of the responding metal forming companies had a portion of their workforce on short time or layoff in March, compared to 2% in February. Seventy-seven percent of respondents reported that they are currently expanding their workforce.

Current average daily shipping levels remained fairly steady in March, with 41% of survey respondents reporting an increase (compared to 45% in February), 48% reporting no change (compared to 44%), and 11% reporting a decrease (the same percentage reported in February).