Economy

PMA: Metalforming Companies Optimistic About Q1

Written by David Schollaert

January 28, 2022

The next three months look favorable for metalforming companies, according to the January 2022 Precision Metalforming Business Conditions Report. Only 7% of companies predict a decrease in economic activity during the period, down from 16% in December.

PMAlogoThe report shows that 37% of metalforming companies anticipate an increase in activity, up from 27% in the previous month. And 56% expect no change, down slightly from 57% in December.

The percentage of respondents reporting an increase in lead times dropped to 46% in January from 50% last month, while average daily shipping levels rose slightly in January. More importantly, metalformers are bullish in regard to new orders, as they expect an improvement during the next three months.

“‘Perseverance’ is a word that defines PMA members,” PMA President David Klotz said. “Despite the challenges of raw material shortages, supply chain disruptions, workforce retention issues and, of course, a global pandemic, our members continue to manufacture the products and parts needed to keep the economy moving.”

Companies with a portion of their workforce on short time or layoff in January was 4%, up slightly from 2% the month prior.

“Members are beginning the year with optimism for our industry and the economy. Hopefully, our elected leaders in Washington, D.C., will enact policies that grow our manufacturing base and help our members continue to provide jobs and economic benefits to local communities across the country,” Klotz said.

About the report: The Precision Metalforming Association’s monthly report provides an economic indicator for manufacturing, sampling 111 metalforming companies in the United States and Canada.

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.

Read more from David Schollaert

Latest in Economy