Metal formers predict slight decline heading into summer months, says report

The May 2022 Precision Metalforming Association (PMA) Business Conditions Report shows metal forming companies anticipating a modest decline in business conditions compared to the previous month’s report. Prepared monthly, the report provides an economic indicator for the next three months of manufacturing, sampling 108 metal forming companies in the U.S. and Canada.

The May report shows that 16% of metal forming companies expect an increase in general economic activity through August (decreasing from 19% in April), 63% forecast no change in activity (the same percentage reported in April), and 21% predict a decrease in activity (compared to 18% in April).

The report shows a significant decrease in predictions for incoming orders, with only 22% of survey respondents expecting an increase in incoming orders through August (compared to 34% in April), 57% predicting no change (compared to 47%), and 21% anticipating a decrease in orders (compared to 19%).

Additionally, current average daily shipping orders trended slightly downward in May, with 9% of respondents reporting a decrease (compared to 7% in April), 45% reporting no change (increasing from 39%) and 46% reporting an increase (compared to 54%).

Lead times remained steady in May, with 34% of responding metal forming companies reporting an increase in lead times, the same percentage reported in April. The percentage of companies with a portion of their workforce on short time or layoff also was unchanged from April to May, at 1%.