Metal formers’ optimism continues for improved business activity

Optimism by metal forming manufacturers about business activity continues to rise, according to the February 2024 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report provides an economic indicator for the next three months of manufacturing, sampling 121 metal forming companies in the U.S. and Canada.

The February report shows for the third straight month an increase in those manufacturers responding to the survey that expect an increase in business activity (23% compared to 20% in January). Also, 61% forecast no change in activity (compared to 60% last month), and only 16% anticipate a decrease in activity (dropping from 20% in January).

Metal formers also forecast an improvement in incoming orders, with 40% of survey respondents expecting an increase in orders during the next three months (up from 34% in January), 48% predicting no change in orders (compared to 45% in January), and only 12% anticipating a decrease in orders (declining from 21% in January).

Current average daily shipping levels spiked in February, with 31% reporting an increase in shipping levels (compared to 16% in January), 39% reporting no change (compared to 44% in January), and 30% reporting a decrease in levels (down from 40% last month).

Seven percent of metal forming companies reported an increase in lead times in February, the same percentage reported in January. Six percent of companies had a portion of their workforce on short time or layoff in February (unchanged from January), while 44% of companies are currently expanding their workforce (increasing from 37% in January).