June 2020 "Business Conditions Report" shows optimism for improved conditions

Metal forming companies predict improved business conditions during the summer months, according to the June 2020 PMA "Business Conditions Report." Prepared monthly, the report provides an economic indicator for manufacturing, sampling 115 metal forming companies in the U.S. and Canada.

For the first time since the initial effects of the coronavirus pandemic impacted the U.S. economy, metal forming companies expressed optimism about the trend of economic activity and incoming orders. The June report shows that PMA members expect an improvement in business conditions compared to April and May. Fifty-three percent of participants predict an improvement in economic activity during the next three months (increasing from 22% in May), 27% expect no change (increasing from 24% last month), and 20% anticipate a decline in economic activity (decreasing significantly from 54% in May).

Metal forming companies also forecast a spike in incoming orders, with 57% of participants expecting an increase in orders compared to three months ago (an increase from only 14% in May). Twenty-four percent expect no change in orders (compared to 16% in May), and 19% anticipate a decrease in orders (declining sharply from 70% last month).

The survey also showed that metal formers experienced little change in current average daily shipping levels in June, with 81% reporting lower levels than three months ago (decreasing from 86% in May), 10% reporting no change (compared to 11% in May), and 9% reporting an increase (compared to 3% in May).

Forty-three percent of responding metal forming companies had a portion of their workforce on short time or layoff in June, a decrease from 50% in May, which was the highest percentage recorded since January 2010.

Full report results are available here.