PMA Report Shows Metalforming Companies Forecast Decline In Economic Activity
The August 2011 Precision Metalforming Association (PMA) Business Conditions Report shows 24% of metalforming companies forecasting a decline in economic activity during the next three months while 29% think activity will improve. Along with this, 27% of metalforming companies expect incoming orders to decrease, up from 19% in July. Augusts’ report showed average daily shipping levels slightly below July levels as only 27% said levels were above three months ago, which is down from 38% in July.
However, metalforming companies did experience greater employment levels with only 12% reporting a portion of their workforce on short time or layoff, compared to 18% in July and 22% in August 2010.
William E. Gaskin, PMA president, reports, “The economic uncertainty created by the chaotic manner in which Congress and the President dealt with the U.S. debt limit issue, along with modest dips in GDP and job growth, have undoubtedly tempered the outlook of PMA’s member companies for the next quarter. Data from PMA’s most recent Orders & Shipments Survey indicate that from January through June 2011 actual orders grew by 12% year-over-year and shipments rose by 14%, with somewhat faster growth in Q-1 than in Q-2, largely due to the impact of the earthquake in Japan on the auto industry. Nearly three-quarters of our members anticipate flat (38%) or growing (35%) orders from August to October.”
Conducted monthly, the report is an economic indicator for manufacturing, sampling 130 metalforming companies in the United States and Canada.