Economy

Metalformers Expect Improved Business Conditions
Written by Sandy Williams
June 15, 2020
Metalforming companies are finally feeling optimistic about the economy and business conditions. After a difficult several months under the coronavirus pandemic, the June 2020 Precision Metalforming Association Business Conditions Report found 53 percent of survey respondents expect economic activity to improve in the next three months, up from 22 percent in May.
A spike in new orders is also in the forecast, according to 57 percent of participants, an increase from just 14 percent in May.
“The optimism reflected in PMA’s June Business Conditions Report likely stems from the lifting of stay-at-home orders in many states and the resiliency of our members,” said PMA President David Klotz. “PMA members are working to overcome the significant challenges created by COVID-19, continuing or restarting operations while protecting the safety of their employees.”
Average daily shipping levels stayed steady in June. Forty-three percent of metalforming companies reported a portion of their workforce on short time or layoff, down from 50 percent in May.
“The legislation passed by Congress included provisions supported by PMA such as extending the term for loan forgiveness,” added Klotz. “This will allow our members and other manufacturers to have more time to rehire workers.”

Sandy Williams
Read more from Sandy WilliamsLatest in Economy

Beige Book: Tariff pressures mount, flat outlook
All districts reported “experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction.”

Steel exports recovered in May but still historically low
US steel exports rose 10% from April to May but remained low compared to recent years. This came just one month after exports fell to the lowest level recorded in nearly five years.

AISI: Raw steel production ticks up near recent high
The volume of raw steel produced by US mills inched higher last week, according to the American Iron and Steel Institute (AISI). After steadily increasing in April and May, domestic mill output stabilized in early June and has remained historically strong since.

Steel groups welcome passage of budget bill
Steel trade groups praised the passage of the Big Beautiful Bill (BBB) in Congress on Thursday.

Industry groups praise Senate for passing tax and budget bill
The Steel Manufacturers Association and the American Iron and Steel Institute applauded the tax provisions included in the Senate's tax and budget reconciliation bill.