Metal formers’ optimism increases despite supply chain challenges, says report

Metal forming companies have expressed increased optimism for improved business conditions during Q1 2022, according to the January 2022 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report provides an economic indicator for manufacturing, sampling 111 metal forming companies in the U.S. and Canada.

The January report shows that 37% of metal forming companies anticipate an increase in general economic activity in the next three months (increasing from 27% in December), 56% expect no change (compared to 57% in December), and 7% predict a decrease in activity (compared to 16% in December).

Forty-six percent of respondents reported an increase in lead times, down from 50% in December.

Metal formers also forecast an improvement in incoming orders in the next three months, with 43% expecting an increase in orders (compared to 34% in December), 45% predicting no change (compared to 49% in December) and only 12% anticipating a decrease in orders (compared to 17% in December).

Current average daily shipping levels rose slightly in January, with 41% of survey respondents reporting an increase (compared to 39% in December), 45% reporting no change (compared to 41% in December), and 14% reporting a decrease (compared to 20% in December).

Four percent of responding metal forming companies had a portion of their workforce on short time or layoff in January, compared to 2% in December.