Metal formers continue to expect little change in economic activity, says report

According to the September 2022 Precision Metalforming Association (PMA) Business Conditions Report, metal forming companies continue to expect little change in business conditions during the next three months and report a rebound in average daily shipping levels. Prepared monthly, the report provides an economic indicator for the next three months of manufacturing, sampling 114 metal forming companies in the U.S. and Canada.

PMA’s September report shows that 60% of metal forming companies anticipate no change in general economic activity in the next three months (compared to 52% in August), 11% forecast an increase in activity (the same percentage reported in August), and 29% predict a decrease in activity (an improvement from 37% last month).

The report showed a modest improvement in expectations for incoming orders, with 19% of survey respondents forecasting an increase in incoming orders during the next three months (compared to 17% in August), 54% predicting no change (compared to 49% last month), and 27% anticipating a decrease in orders (compared to 34% in August).

Current average daily shipping levels rebounded in September after declining for the previous four months. Thirty-two percent of respondents reported an increase in shipping levels (compared to 19% in August), 51% reported no change (the same percentage reported last month), and only 17% reported a decrease (compared to 30% in August).

“Metal formers continue to expect fairly steady business conditions in the last quarter of the year,” said PMA President David Klotz. “Our members anticipate little change in current economic activity and shipping levels seem to be steadying after declining the last several months. What is striking is that the report shows that more than six in 10 members are expanding their workforce and trying to find workers to fill these jobs.”

Lead times remained steady, with 20% of metal forming companies reporting an increase in lead times in September (compared to 21% in August). Only 2% of companies had a portion of their workforce on short time or layoff in September (compared to 4% in August), while 67% of companies are currently expanding their workforce (increasing from 65% last month).