Economy
Metalformers Expect Deteriorating Business Conditions
Written by Sandy Williams
June 1, 2019
Metalforming companies are expecting a downward trend in business conditions for the next three months, according to 119 metalforming companies surveyed by the Precision Metalforming Association.
The PMA Business Conditions Report for May shows only 19 percent of those surveyed expected economic activity to improve. About 24 percent expected orders to decline, an increase from 18 percent in the last survey.
Firms reported that average daily shipping levels declined in May. About 9 percent of metalforming firms reported some of their workforce on short time or layoff compared to 7 percent in April. At this time last year, the percentage reporting layoffs and short time was zero.
“Despite positive economic and job-growth reports coming out of Washington, PMA’s monthly Business Conditions report shows that metalforming manufacturers are concerned about the U.S. economy,” said PMA President David Klotz. “Over the past quarter, the monthly report has shown a slow but steady decline in PMA members’ optimism regarding economic activity, reflected in their prediction of a slowdown in incoming orders.
“The survey results coincide with reports from across the country that the steel and aluminum tariffs are taking a toll on steel- and aluminum-using manufacturers,” added Klotz. “PMA members are losing 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 due to the steel tariffs. The Trump administration’s termination of these tariffs for Canada and Mexico is an important first step, but all Section 232 steel and aluminum tariffs need to end for our members to remain competitive and before further damage is done to our manufacturing sector.”
Sandy Williams
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