Economy

PMA Business Conditions To Remain Same Over Next 3 Months

Written by Sandy Williams


Metalforming companies are expecting little change in business conditions in the next three months according to the June 2015 Precision Metalforming Association (PMA) Business Conditions Report.

Just 23 percent of members surveyed (down from 24 percent in May) think economic activity will improve in the next three months; 60 percent expect no change. New orders are also expected to decline slightly.

Current shipping levels declined slightly in June according to survey results.

Fewer companies reported workforce on short time or layoff—7 percent in June compared to 9 percent in May.

PMA’s June Business Conditions report reflects ongoing concern that we are mired in a slow-growth, strong-dollar period, subject to significant risk of an extended period of underperformance vs. expectations,” said William E. Gaskin, PMA president. “Current and near-term expectations for orders and shipments reported by members are significantly less robust than expectations of four to six months ago, and modestly lower than they were one year ago. Metalforming companies supplying the automotive industry continue to ship at strong levels, but many other markets have softened and are flat or declining modestly, with heavy equipment, agriculture/off-highway, and oilfield business continuing to slow. Political leadership in Washington, D.C., has failed to rally support to address tax reform for corporate and pass-through entities, so U.S. manufacturers are paying higher taxes than their global competitors. And costs of regulatory compliance are set to grow significantly based on pending greenhouse gas and ozone regulations.”

The monthly PMA report is an economic indicator for manufacturing. The June report is a sampling of 121 metalforming companies in the United States and Canada.

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