Economy

PMA: Metalforming Companies Still Hopeful About Q1

Written by David Schollaert

February 25, 2022

The next three months remain favorable for metalforming companies, though widespread supply shortages and other challenges continue, according to the February 2022 Precision Metalforming Business Conditions Report.

PMAlogoThere was little change in this month’s forecast for business conditions. Only 10% of companies predict a decrease in economic activity during the period, up slightly from 7% in January.

The report shows that 32% of metalforming companies anticipate an increase in activity, down from 37% in the previous month. And 58% expect no change, up slightly from 56% in January.

The percentage of respondents reporting an increase in lead times was unchanged month-over-month, holding at 46% in February. The average daily shipping levels rose slightly in February. More importantly, metalformers remain bullish regarding new orders. They expect an improvement during the next three months, with only 8% expecting a decrease versus 14% last month.

“Our members continue to experience steady business conditions but are very concerned about meeting demand because of the inability to find the materials they need due to supply chain disruptions,” PMA President David Klotz said.

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

Klotz said that most PMA members reported job openings that they cannot fill, adding that PMA is looking at how it can assist its members to highlight prospects in manufacturing. “PMA is redoubling its efforts to assist members with initiatives to promote manufacturing careers and help train and retain their workforce through Metalform Edu and other programs.”

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

CRU: Dollar and bond yields rise, metal prices fall as Trump wins election

Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.