PMA releases March 2008 Business Conditions Report.
Press Release Summary:
According to the March 2008 PMA Business Conditions Report, 50% of participants reported that activity will remain the same over the next 3 months and 42% of companies anticipate no change in incoming orders. Also, 46% of companies reported that current average daily shipping levels remain steady compared to 3 months ago. The number of metalforming companies with a portion of their workforce on short time or layoff rose to 19% in March.
Original Press Release:
Business Conditions Report: March 2008
CLEVELAND, OH - March 14, 2008 - According to the March 2008 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect business conditions to remain steady during the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 143 metalforming companies in the United States and Canada.
When asked what the trend in general economic activity will be over the next three months, metalformers expect little change. Fifty percent of participants reported that activity will remain the same (down from 54% in February), 19% anticipate that conditions will improve (up from 14% last month) and 31% predict a decline in business conditions (down from 32% in February).
Metalforming companies also expect incoming orders to remain virtually unchanged over the next three months. Thirty percent of companies forecast an increase in orders (compared to 31% in February), 42% anticipate no change (compared to 39% last month) and 28% expect a decrease in orders (down from 30% in February).
Current average daily shipping levels remain steady as well. In March, 30% of participants reported that current average daily shipping levels are above levels of three months ago (up from 29% in February), 46% reported no change (the same percentage reported last month) and 24% reported that shipping levels are below levels of three months ago (down from 25% in February).
The number of metalforming companies with a portion of their workforce on short time or layoff rose to 19% in March from 16% in February.
"Uncertainty over general economic conditions exacerbated by sharp first-quarter cutbacks in housing starts, reduced production volumes for autos and light trucks, and slowing orders for durable goods have impacted many metalforming companies in the first quarter of 2008. This is reflected in their cautious outlook for the next three months," commented William E. Gaskin, PMA president. "However, based on reports from PMA members, the weak dollar is supporting export growth so domestic manufacturing may be stronger than the U.S. media would have us think. While some companies report significant cutbacks, most report stable shipment levels and expect that orders will improve modestly in the second quarter. They are concerned about sharp increases in raw material prices and whether they will be successful in recovering added costs from their customers. And, they are aggressively seeking productivity improvements to increase their efficiencies through automation and capital investment."
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-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
