Economy
Challenges in Q3 for Metalforming Companies
Written by Sandy Williams
June 21, 2021
The next three months will be challenging, said metalforming companies in the June 2021 Precision Metalforming Business Conditions Report. Only 36% of companies expect an improvement in economic activity during the period, down from 41% in May, while 12% anticipate a decline in activity, up from 10% in the previous month.
The percentage of respondents reporting an increase in lead times dropped to 66% in June from 71% in May. The June survey marked the first decline reported for lead times in eight months.
Average daily shipping levels decreased in June and metalformers are expecting a dip in new orders during the next three months.
“Obtaining raw materials and finding workers are the biggest challenges reported by PMA members,” said PMA President David Klotz. “Members are reporting lead times extending into 2022 for steel, with similar challenges for aluminum, copper, brass and other metals. The semiconductor shortage that has idled some auto plants also is negatively impacting orders.”
Companies with a portion of their workforce on short time or layoff in June was unchanged from May at 4%.
“PMA, through its One Voice advocacy team in Washington, D.C., continues to engage policymakers and members of Congress to find ways to increase supply, including ending the damaging and unnecessary Section 232 steel and aluminum tariffs, and to help the industry recruit workers by promoting awareness and training,” added Klotz.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
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)
Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.