Metalformers see steady near-term business conditions

In PMA’s April report, 67% of the respondents expect no change in general economic activity in the next three months vs. 60% in March; 21% see an increase in activity vs. 24% a month earlier; and 12% forecast a drop in activity, down from 16% in March.

A majority of metalformers also see only minor near-term changes in incoming orders. For April, 54% of respondents expect no change in orders during the next three months (up from 45% in March), 33% anticipate an increase in orders (down from 39% a month earlier), and 13% forecast a decrease in orders (vs. 16% in March). 

Current average daily shipping levels showed little change in April, PMA said. In the survey, 48% reported no change in shipping levels (up from 44% in March), 21% said there was a rise in levels (down from 24% last month), while 31% reported a decrease in levels (down slightly from 32% in March).

 “The ongoing ambiguity around the tax landscape continues to be a drag on the metalforming industry as reflected by a 10% drop in companies that are currently expanding their workforce,” David Klotz, PMA president, said in a statement on Thursday.

“If Congress were to roll back the tax on R&D expenditures and reinstate the ability for companies to fully deduct those costs, and restore 100% bonus depreciation, we would anticipate an immediate and positive shift in industry sentiment, hiring, and future business condition projections,” he added.