Economy
Metalformers Expect Improved Business Conditions
Written by Sandy Williams
June 15, 2020
Metalforming companies are finally feeling optimistic about the economy and business conditions. After a difficult several months under the coronavirus pandemic, the June 2020 Precision Metalforming Association Business Conditions Report found 53 percent of survey respondents expect economic activity to improve in the next three months, up from 22 percent in May.
A spike in new orders is also in the forecast, according to 57 percent of participants, an increase from just 14 percent in May.
“The optimism reflected in PMA’s June Business Conditions Report likely stems from the lifting of stay-at-home orders in many states and the resiliency of our members,” said PMA President David Klotz. “PMA members are working to overcome the significant challenges created by COVID-19, continuing or restarting operations while protecting the safety of their employees.”
Average daily shipping levels stayed steady in June. Forty-three percent of metalforming companies reported a portion of their workforce on short time or layoff, down from 50 percent in May.
“The legislation passed by Congress included provisions supported by PMA such as extending the term for loan forgiveness,” added Klotz. “This will allow our members and other manufacturers to have more time to rehire workers.”
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Manufacturing in New York state contracts again
However, companies are growing more optimistic about the future.
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Beige Book finds growing economic, policy uncertainty
All districts reported "hesitancy and a cautious approach to business and household decisions,” according to the Beige Book.
ISM: Manufacturing continues to contract in May
May marks the third consecutive month US manufacturing activity declined, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Chicago PMI decreases 4.1 points in May
The Chicago Business Barometer reports that decreases in new orders, order backlogs, and softer production pulled the index down by 4.1-points to 40.5, in May.