Metalformers see activity improving or steady in coming months

About 23% of the manufacturers responding to the survey expect an uptick in economic activity in the next three months. That’s an increase over the 13% who predicted an uptick in October.

Still, 43% expect no change in activity, while 34% of respondents anticipate activity to fall, according to the report by the Cleveland, Ohio-based trade association.

Metalformers had a slightly more optimistic forecast for incoming orders, with 30% of survey respondents anticipating rising orders during the next three months, 40% predicting no change in orders, and 30% expecting orders to slip, the report found.

In terms of labor, the survey revealed that 14% of respondents reported a portion of their workforce on short time or layoff in November, while 26% reported that they are currently expanding their workforce.

“Metalformers continue to demonstrate resilience despite economic uncertainty, driven in part by the delay in reinstating key tax provisions,” said PMA President David Klotz in a statement. “These include rolling back the tax on R&D expenditures, restoring the ability to fully deduct those costs and reestablishing 100% bonus depreciation.

“We urge the incoming Trump Administration and the new Congress to make reinstating these critical tax incentives a top priority if the current Congress does not act during the lame-duck session,” Klotz continued. “Resolving these issues would inject much-needed confidence and encourage strategic investments to strengthen domestic manufacturing — a central theme of both parties during the election campaign.”

PMA represents more than 900 member companies. Its monthly business report serves as an economic indicator for manufacturing for the next three months.