Economy
PMA: Metalforming Companies Still Hopeful About Q1
Written by David Schollaert
February 25, 2022
The next three months remain favorable for metalforming companies, though widespread supply shortages and other challenges continue, according to the February 2022 Precision Metalforming Business Conditions Report.
There was little change in this month’s forecast for business conditions. Only 10% of companies predict a decrease in economic activity during the period, up slightly from 7% in January.
The report shows that 32% of metalforming companies anticipate an increase in activity, down from 37% in the previous month. And 58% expect no change, up slightly from 56% in January.
The percentage of respondents reporting an increase in lead times was unchanged month-over-month, holding at 46% in February. The average daily shipping levels rose slightly in February. More importantly, metalformers remain bullish regarding new orders. They expect an improvement during the next three months, with only 8% expecting a decrease versus 14% last month.
“Our members continue to experience steady business conditions but are very concerned about meeting demand because of the inability to find the materials they need due to supply chain disruptions,” PMA President David Klotz said.
Companies with a portion of their workforce on short time or layoff in February was 2%, down from 4%, the month prior.
Klotz said that most PMA members reported job openings that they cannot fill, adding that PMA is looking at how it can assist its members to highlight prospects in manufacturing. “PMA is redoubling its efforts to assist members with initiatives to promote manufacturing careers and help train and retain their workforce through Metalform Edu and other programs.”
About the report: The Precision Metalforming Association’s monthly report provides an economic indicator for manufacturing, sampling 111 metalforming companies in the United States and Canada.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
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