Pessimism grew among metalformers in September’s business report from the Precision Metalforming Association (PMA). The leading factor in the growing negative sentiment: the possibility of a prolonged United Auto Workers (UAW) strike.
Half of the surveyed metalforming companies expect a downturn in business conditions in the coming months. That figure is up from 29% the month before. Still, 42% are anticipating no change in activity. Just 8% expect better business activity.
Nearly half (47%) of metalformers also predict a decline in incoming orders, up notably from 28% in August.
More metalformers reported higher average daily shipping levels in September – 23% vs. 16% in August. The number reporting no change in shipping levels was unchanged month to month at 42%, PMA said.
“PMA has many members who supply the automotive sector, and the prospects of a prolonged labor strike against the major automakers certainly is reflected in this month’s Business Conditions Report,” PMA president David Klotz in a statement.
“PMA members hope that both sides reach an agreement as soon as possible to avoid further disruption to the economy,” he added.
The PMA represents stampers, fabricators, roll formers, and other value-added processors. Its monthly Business Conditions Report samples 98 metalforming companies in the US and Canada. The report serves as an economic indicator for manufacturing.
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