PMA July Report shows expectations of improved conditions.

Press Release Summary:



According to the July 2008 PMA Business Conditions Report, 17% of participants expect activity to improve during the next 3 months, while 27% of companies predict an increase in incoming orders. Current average daily shipping levels remained unchanged in July, with 19% of participants reporting levels above what they were 3 months ago. Also, the number of metalforming companies with a portion of their workforce on short time or layoff decreased to 17%.



Original Press Release:



Business Conditions Report: July 2008



CLEVELAND, OH - July 22, 2008 - According to the July 2008 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect a slight improvement in business conditions in the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 150 metalforming companies in the United States and Canada.

When asked what the trend in general economic activity will be during the next three months, metalformers expect conditions to recover somewhat. Seventeen percent of participants report that activity will improve (up from 12% in June), 48% anticipate activity will remain unchanged (compared to 50% last month) and 35% forecast a decline in business conditions (down from 38% in June).

Metalforming companies also expect a slight improvement in incoming orders during the next three months. Twenty-seven percent of companies predict an increase in orders (up from 22% in June), 43% anticipate no change (down from 44% the previous month) and 30% expect a decrease in orders (compared to 34% in June).

Current average daily shipping levels remained unchanged in July. Nineteen percent of participants report that shipping levels are above levels of three months ago, 40% report no change and 41% report that shipping levels are below levels of three months ago. These are the exact percentages that were reported in June.

The number of metalforming companies with a portion of their workforce on short time or layoff decreased in July. Seventeen percent of companies reported having a portion of their workforce on short time or layoff in July, down from 23% in June.

"While some segments of manufacturing supplied by the metalforming industry, such as medical equipment, construction markets related to infrastructure and segments of heavy equipment and agricultural industries, have continued to perform quite well, the fall-off of shipments to the domestic automotive, home building and appliance markets continues to impact metalforming companies quite severely," said William E. Gaskin, PMA president. "High costs of steel, energy and other commodities are negatively impacting profitability for all metalforming companies. Those supplying the Detroit 3 and the new domestic platforms for large sport utility and truck markets have been particularly hard-hit. However, the modest uptick in expectations for incoming orders recorded in July is a positive development, signaling increased production levels this fall."

The monthly Business Conditions Report has been conducted by PMA since 1979. Full report results are available at pma.org/about/stats/BCreport. PMA is the full-service trade association representing the $91-billion metalforming industry of North America¡Xthe 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"oin 41 states of the United States as well as Canada and Mexico.

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