PMA: August survey signals sentiment shift in the metalforming sector

The August Business Conditions Report issued by the Precision Metalforming Association (PMA) found that North American sentiment improved markedly in August.

“While metalformers expressed growing caution in July, this month’s survey reflects a notable improvement in sentiment,” said Mark Getsay, PMA’s managing director. “The increase in companies expecting stronger economic activity and higher order volumes is an encouraging sign.”

And while manufacturers continue to navigate supply-chain challenges and policy uncertainty, Getsay noted key survey results indicate growing optimism heading into the fall.

Headline orders get a boost

Nearly half of respondents (49%) expect incoming orders to rise over the next three months, the report said, up sharply from 34% in July. Those predicting no change eased to 36% from 48%, with the balance anticipating a decline.

This month’s report also showed that general economic expectations followed a similar path. Thirty-three percent now expect activity to strengthen over the coming quarter, against 24% a month earlier. And the share forecasting a downturn nearly halved to 6% from 11%. A clear majority (61%) still expect no change.

Current activity also firmed. Some 47% reported higher average daily shipping levels, even as 19% reported a decrease, marginally above July’s 18%.

Still, some headwinds remain

Other key highlights included longer lead times in August. Twenty-eight percent of respondents reported longer lead times versus 20% in July. Hiring held up, with 48% of companies expanding their workforce (46% in July) and just 5% reporting workers on short time or layoff status, down from 6%.

The PMA report samples 86 metalforming companies in the US and Canada to provide an economic indicator for the next three months of manufacturing.

David Schollaert

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.