Economy

PMA: Tariffs a Drag on Manufacturing Sector

Written by Sandy Williams


The metalforming industry is expecting a dip in business conditions in the next three months, according to the April 2019 Precision Metalforming Association survey.

“The Business Conditions Report reflects the growing concern of metalforming manufacturers that the Section 232 steel tariffs are creating a drag on the U.S. manufacturing sector,” said PMA President David Klotz.

Klotz added that it is time to terminate the steel and aluminum tariffs.

“PMA members were in Washington, D.C., last week warning members of Congress that manufacturers were experiencing the negative consequences of these tariffs,” said Klotz. “We spoke to members of Congress and staff about lost business to overseas competitors, who are paying global market prices for steel while the United States continues to be an island of high steel prices. It’s time to terminate the Section 232 tariffs on steel and aluminum imports before further damage is done to our manufacturing sector.”

Incoming orders are expected to decline during the next three months, with 39 percent of PMA members predicting an increase in orders (down from 50 percent in March) and 18 percent forecasting a decrease in orders (compared to 12 percent last month). Those who anticipate no change in orders rose to 43 percent compared to 38 percent in March.

Current average daily shipping levels remained steady in April with 36 percent reporting that shipping levels are above the levels of three months ago.

About 7 percent of metalforming companies surveyed reported workers on short time or layoff compared to 8 percent in March and 2 percent a year ago.

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