Metalforming companies express optimism
Metalforming companies expect a slight uptick in business conditions during the next three months.
According to the September 2012 Precision Metalforming Association (PMA) Business Conditions Report, 24% of participants anticipate that economic activity will improve during the next three months (up from 23% in August), 51% predict that activity will remain unchanged (up from 46% last month) and 25% report that activity will decline (compared to 31% in August).
Metalforming companies also expect a slight increase in incoming orders during the next three months, with 32% anticipating an increase in orders (compared to 29% in August), 37% forecasting no change (down from 40% last month) and 31% predicting a decrease in orders (the same percentage reported in August).
Average daily shipping levels improved modestly in September. Twenty-two percent of participants report that shipping levels are above levels of three months ago (up from 17% in August), 38% report that shipping levels are the same as three months ago (compared to 43% in August), and 40% report a decrease in shipping levels (the same percentage reported last month).
The percentage of metalforming companies with a portion of their workforce on short time or layoff increased to 15% in September, up from 13% in August. The September figure is higher than it was one year ago when only 12% of metalformers reported workers on short time or layoff.
“After several months of flat or modestly negative expectations for new orders and shipments, PMA’s manufacturing member companies have moved to a slightly more positive outlook as Q-3 draws to a close,” said William E. Gaskin, PMA president. “During the first four or five months of 2012, the average metalforming company reported that orders and shipments, year-over-year, were growing at the rate of approximately 10% and 12%, respectively, compared to 2011. During the summer, modest contraction in orders and shipments in many sectors (excluding automotive) reduced growth to approximately 8% year-over-year. With significant economic uncertainty being exacerbated by the upcoming presidential elections, it is expected that the balance of 2012 will continue to show single-digit growth compared to 2011, as we look ahead to Q-4.”
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.
