Economy

PMA Survey Shows Little Change for Short-term Business Conditions

Written by Sandy Williams


Respondents in the April 2015 Precision Metalforming Association (PMA) Business Conditions Report found little to get excited about for the coming months.

A third of participants in the monthly survey expect improved economic activity during the next three months but 58 percent forecast no change. Incoming orders are expected to remain steady during the period.

Average daily shipping levels improved in April compared to three months ago according to 46 percent of participants and 40 percent said they were the same.

Seven percent of metalforming companies had workforce on short-time or layoff in April, down from 10 percent in March and 8 percent a year ago.

“Business conditions in the metalforming industry seem to accurately reflect the current state of the U.S. economy—generally okay, with pockets of disappointment (mining, heavy equipment, segments of construction) and pockets of opportunity (aerospace, home and commercial electronics, automotive and appliances),” said William E. Gaskin, PMA president.

“Fabricated metal products, as a segment of overall manufacturing, finished Q-1 2015 with average growth of 2.7%, according to the Federal Reserve, while PMA’s orders and shipments data indicates that typical PMA members have experienced one to two percent growth year-to-date for 2015 vs. 2014. Continued growth in regulatory burdens, lack of clear tax policy supporting manufacturing on the part of Congress and the strong U.S. dollar are all headwinds impacting PMA’s membership. However, the April Business Conditions Report indicates continued firming in expectations for shipments over the next three months, which is a positive trend.”

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