Metal formers continue to expect economic activity to stabilize

Metal forming companies expressed increased confidence that business conditions will continue to stabilize in Q1 2024, according to the December 2023 Precision Metalforming Association Business Conditions Report. Prepared monthly, the report provides an economic indicator for the next three months of manufacturing, sampling 120 metal forming companies in the U.S. and Canada.

The December report shows that 57% of metal forming companies expect no change in general economic activity in the next three months (compared to 49% in November), 13% anticipate an increase in activity (up from 9% last month), and 30% predict a decrease in activity (dropping significantly from 42% in November).

Metal formers also forecast an improvement in incoming orders, with 29% of survey respondents expecting an increase in orders during the next three months (up from 17% in November), 41% predicting no change in orders (compared to 45% in November), and 30% anticipating a decrease in orders (declining from 38% in November).

Current average daily shipping levels remained steady in December, with 43% reporting no change in shipping levels (compared to 33% in November), 43% reporting a decrease in levels (down from 49% last month), and 14% reporting an increase in shipping levels (compared to 18% in November).

Only 7% of metal forming companies reported an increase in lead times in December (down from 13% in November). Seven percent of companies had a portion of their workforce on short time or layoff in December (compared to 6% in November), while 37% of companies are currently expanding their workforce (compared to 36% last month).