PMA releases April, 2007 Business Conditions Report.

Press Release Summary:



According to the PMA report, which samples 158 companies in the U.S. and Canada, metalforming companies expect business conditions to continue a weakening trend that began in March. Companies also forecast a downward trend in incoming orders during the next 3 months, while 20% reported having workers on short time or layoff. However, 40% of companies reported that shipping levels improved in April and are above levels of 3 months ago.



Original Press Release:



Business Conditions Report: April 2007



CLEVELAND, OH - April 19, 2007 - During the next three months, metalforming companies expect business conditions to continue a weakening trend that began in March, according to the April 1, 2007, Precision Metalforming Association (PMA) Business Conditions Report. Conducted monthly, the report is an economic indicator for manufacturing, sampling 158 metalforming companies in the United States and Canada.

When asked what they expect the trend in general economic activity to be over the next three months, only 25% of participants reported that conditions will improve (down from 28% in March), 56% predict activity will remain the same (compared to 57% the previous month) and 19% anticipate a decline in business conditions (up from 15% in March).

Metalforming companies also forecast a downward trend in incoming orders during the next three months. Thirty-four percent of respondents predict an increase in orders (down from 40% in March), 46% expect no change (compared to 41% last month) and 20% anticipate a decrease in orders (up from 19% in March).

The number of metalforming companies with a portion of their workforce on short time or layoff worsened in April, as 20% reported having workers on short time or layoff, compared to 16% in March.

However, current average daily shipping levels compared to the past three months improved in April. Forty percent of companies reported that shipping levels are above levels of three months ago (up from 35% in March), 40% reported no change (compared to 37% in March) and only 20% reported that April shipping levels are below levels of three months ago (compared to 28% the previous month).

"Expectations for new orders reported in PMA's April Business Conditions Report continued a downward trend," noted William E. Gaskin, PMA president. "However, members also reported a sharp uptick in their anticipated shipments in April compared to March, which is inconsistent with last month's report. Metalforming companies are experiencing a very challenging environment, as customers constantly adjust their requirements for metal parts and assemblies to avoid excess inventories should the economy stumble more severely than anticipated. There is continued uncertainty in the automotive, housing and appliance markets that will make profitability in 2007 a challenge for many companies."

The monthly Business Conditions Report has been conducted by PMA since 1979. Full report results are available at www.pma.org. PMA is the full-service trade association representing the $41-billion metalforming industry of North America-the industry that creates precision metal products using stamping, fabricating and other value-added processes. Its nearly 1200 member companies include metal stampers, fabricators, spinners, slide formers and roll formers as well as suppliers of equipment, materials and services to the industry. Members are located in 30 countries, with the majority found in North America-in 41 states of the United States as well as Canada and Mexico.

Contact:
Christie Carmigiano
Government, Safety & Public Affairs Manager
Precision Metalforming Association
Phone: 216/901-8800
Fax: 216/901-9190
E-mail: ccarmigiano@pma.org
Web site: www.pma.org

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