OEMs

Metalformers see weaker conditions in coming months

Written by David Schollaert

October 31, 2024

Metalformers in the US and Canada expect a decline in economic activity in the coming months, according to the recently released October Business Conditions Report from the Precision Metalforming Association (PMA).

Approximately 37% of surveyed manufacturers anticipate weaker business conditions over the next three months. This rate is up from 31% in September but a tick below 38% in August. Only 13% expect conditions to improve in the near term, down from 15% in the last two months.

“Metalformers are approaching the next three months with increased caution, partly due to uncertainty surrounding the upcoming presidential election and Congress’s delay in reinstating key tax incentives,” commented PMA President David Klotz.

Despite the expectation of weaker conditions in the short term, half of the survey respondents expect no change in activity in the next three months.

Metalformers have mixed expectations for incoming orders in the near term, according to the October report. Less than half of respondents (42%) anticipate orders to be steady through December, while 24% expect an increase and 34% a decrease.

The PMA comprises more than 900 member companies in the North American metalforming industry, as well as equipment, materials, and service providers. Its monthly business report serves as an economic indicator for manufacturing for the next three months.

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.

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