Economy

PMA: Metalforming Companies Optimistic About Q1

Written by David Schollaert


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

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