Steel Products
Metal Forming Companies Expect Growth in Next 3 Months
Written by Sandy Williams
January 18, 2013
Written by: Sandy Williams
Metal forming companies are expecting a spike in business conditions in the next three months according to survey data released Wednesday by the Precision Metalforming Association (PMA).
Survey data shows 32 percent of participants are expecting conditions to get better in the next three months (up from 22 percent in December) and 50 percent continue to expect unchanged conditions.
Incoming orders are expected to increase in the next three months as well, with 44 percent compared to 33 percent in December expecting a rise in orders.
Average daily shipping levels dropped slightly in January with less participants reporting an increase in levels—21 percent versus 27 percent. Shipping levels appeared the same as three months ago to 38 percent of participants and 41 percent reporting a decrease in shipping levels.
Fewer companies reported workers on short time or layoff in January, down to 15 percent from 17 percent in December. The January figure is higher, however, than the 12 percent reported a year ago.
“The January uptick in the ISM manufacturing index into the ‘growth’ range, continued expectations of modest growth in the automotive sector for 2013, along with a strengthening housing/construction market support the modest optimism expressed by PMA member companies in the January Business Conditions Report,” said William E. Gaskin, PMA president. “PMA member companies were somewhat more optimistic one year ago about the outlook for business conditions than they are today (reflecting soft orders and shipments in Q-4 2012). However, growth in the automotive market is expected to continue and homebuilding/commercial construction is starting to show signs of recovery. PMA members seem to support modest growth in GDP in 2013, perhaps in the 4 to 6% range.”
The monthly Business Conditions Report is based on a sampling of 131 metalforming companies in the United States and Canada and is considered an economic indicator for manufacturing.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.
U.S. Steel to halt slab conversion at Granite City Works
U.S. Steel said it plans to reduce slab consumption at its Granite City Works near St. Louis, a company spokesperson said on Monday. The Pittsburgh-based steelmaker will shift the production and processing of steel slabs to its Mon Valley Works near Pittsburgh and its Gary Works near Chicago. Citing a United Steelworkers (USW) union memo, […]
SMU Week in Review: September 1-5
Here are highlights of what’s happened this past week and a few upcoming things to keep an eye on.
HR Futures: Market finds footing on supply-side mechanics
As Labor Day marks the transition into fall, the steel market enters September with a similar sense of change. Supply-side fundamentals are beginning to show signs of restraint: imports are limited, outages loom, and production is capped, setting the stage for a market that feels steady on the surface but still unsettled underneath.
Beige Book: US markets remain cautious amidst volatile pricing environment
Sluggish economic activity across the US was largely attributed to uncertainty caused by tariff policies and growing cost pressures, according to the US Federal Reserve’s (The Fed) latest Beige Book report. The Fed’s latest economic report, posted on Sept. 3, consists of economic findings from the six weeks preceding Aug. 25 throughout 12 districts. Economic […]