Metalformers expect growth in orders
Metalforming companies expect conditions to remain fairly steady over the next three months.
According to the February 2010 Precision Metalforming Association (PMA) Business Conditions Report, 45% of participants expect an improvement in economic activity during the next three months (the same percentage reported in January), 49% predict that activity will remain unchanged (up from 45% last month) and only 6% report that activity will decline (down from 10% in January).
Metalforming companies also forecast steady incoming orders during the next three months. Increased orders are anticipated by 54% (up from 52% in January), 32% expect no change (compared to 38% the previous month) and 14% predict a decrease in orders (up from 10% in January).
Current average daily shipping levels spiked in February with more than half of responding companies indicating that their shipments increased. Fifty-one percent of participants report that shipping levels are above levels of three months ago (up from 33% in January), 34% report no change (compared to 53% in January) and 15% reported that shipping levels are below levels of three months ago (up from 14% in January).
The number of metalforming companies with a portion of their workforce on short time or layoff dropped to 47% in February, down from 52% in January. While the continued downward trend in percent of companies with people on layoff or short time is positive, it may be masking the fact that many companies have decided that the smaller number of employees they had as of Fall 2009 is the “new normal,” meaning that they do not consider those that previously left on layoff any longer.
“February’s Business Conditions Report continues to reflect improved orders and shipments among metalforming companies,” said William E. Gaskin, PMA president. "Some 86% of respondents expect incoming orders for the next three months to be higher or equal to current levels and 85% expect shipments to be higher or equal to shipments over the past three months. Anecdotal reports from member companies indicate that many companies are recalling at least part of the workforce they had laid off during 2009.”
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
