Economy

PMA Survey Indicates Steady Conditions for Next 3 Months

June 29, 2016

Metalforming companies surveyed in June are expecting little change in business conditions during the next three months. The June 2016 Precision Metalforming Association sampled 120 metalforming companies in the U.S. and found most expect economic activity to remain steady.

Orders are expected to remain at stable, with 51 percent predicting no change compared to 44 percent in May. The survey results revealed current average daily shipping levels dipped in June with only 33 percent of participants reporting current levels as higher than three months ago compared to 39 percent in May.

Only 12 percent of metalformers reported less workforce on short time or layoff in June compared to 15 percent the previous month. In June 2015 only 7 percent reported employees on short time or layoff.

“Flat business conditions reported by member companies in PMA’s June Business Conditions Report reflect the Federal Reserve’s view that manufacturing industrial production grew by only 0.5% during Q-1 vs 2015’s fourth quarter,” said William E. Gaskin, PMA president. “Motor vehicles and parts production continue to be the strongest sector for the metalforming industry, with computer/electronic products, medical equipment, home appliances and non-residential construction following. Sharp price increases for flat-rolled steel, a result of the recent imposition of antidumping duties on imports, are significantly impacting the competitiveness of metalforming companies producing an end product or components where raw-material cost increases must be passed directly to their customers.”