Economy
Metalformers Apprehensive About Business Conditions
Written by Sandy Williams
September 3, 2019
The metalforming sector continues to express uncertainty about near-term business conditions, according to the August 2019 Precision Metalforming Association Business Conditions Report.
The August report shows that 27 percent of participants anticipate an improvement in economic activity during the next three months (an increase from just 16 percent in July), 46 percent expect no change in activity (a decrease from 60 percent in July), and 27 percent predict a decline in activity (as compared to 24 percent last month).
“This month’s report indicates that metalformers continue to be apprehensive about near-term business conditions,” said PMA President David Klotz. “This likely stems from ongoing trade tensions, upcoming political elections and warnings of an economic slowdown.”
New orders are expected to stay about the same in the next three months, said 43 percent of firms responding to the survey, while 28 percent expect an increase in orders and 29 percent a decline.
Current average daily shipping levels have declined, reported 37 percent of metalforming companies compared to 26 percent in the previous months. Thirty-eight percent said levels are the same, while 25 percent reported that shipping levels are higher than three months ago.
Those companies with workers on short time or layoff increase to 10 percent in August from 9 percent in July. A year ago, only 4 percent of companies reported workers on short time or layoff.
Sandy Williams
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