Economy

PMA Members Express Optimism Toward Future Business Conditions

Written by Sandy Williams


Members of the Precision Metalforming Association are a bit more positive about business conditions for 2020. The December PMA Business Conditions Report shows an uptick in the percentage of survey participants who predict an improvement in economic activity during the next three months, while also noting a decline in current average daily shipping levels. The survey showed that metalforming companies are expecting an improvement in incoming orders.

“Metalforming companies are ending a challenging year with some optimism that 2020 will bring improved conditions,” said PMA President David Klotz. “The U.S. manufacturing sector contracted this year, with the Institute of Supply Management Manufacturing Index registering its lowest level since 2009. Recent progress on a Phase 1 trade agreement with China and the United States-Mexico-Canada Agreement are positive signs that 2020 will bring more stability, but the trade restrictions that cause the most negative impact, the Section 232 steel and aluminum tariffs, remain unchanged.”

The percentage of companies reporting a portion of their workforce on short time or layoff remained unchanged from November at 15 percent. A year ago, 9 percent of companies reported workers on short time or layoff.

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