Economy
Metalformers Expect Deteriorating Business Conditions
Written by Sandy Williams
June 1, 2019
Metalforming companies are expecting a downward trend in business conditions for the next three months, according to 119 metalforming companies surveyed by the Precision Metalforming Association.
The PMA Business Conditions Report for May shows only 19 percent of those surveyed expected economic activity to improve. About 24 percent expected orders to decline, an increase from 18 percent in the last survey.
Firms reported that average daily shipping levels declined in May. About 9 percent of metalforming firms reported some of their workforce on short time or layoff compared to 7 percent in April. At this time last year, the percentage reporting layoffs and short time was zero.
“Despite positive economic and job-growth reports coming out of Washington, PMA’s monthly Business Conditions report shows that metalforming manufacturers are concerned about the U.S. economy,” said PMA President David Klotz. “Over the past quarter, the monthly report has shown a slow but steady decline in PMA members’ optimism regarding economic activity, reflected in their prediction of a slowdown in incoming orders.
“The survey results coincide with reports from across the country that the steel and aluminum tariffs are taking a toll on steel- and aluminum-using manufacturers,” added Klotz. “PMA members are losing business to overseas competitors who are paying global market prices for steel while the United States continues to be an island of high steel prices due to the steel tariffs. The Trump administration’s termination of these tariffs for Canada and Mexico is an important first step, but all Section 232 steel and aluminum tariffs need to end for our members to remain competitive and before further damage is done to our manufacturing sector.”
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Architecture firms struggle through April
For the third month in a row, architecture firms reported a reduction in billings through April, according to the latest Architecture Billings Index release.
House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.
Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.
Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)