PMA releases May, 2007 Business Conditions Report.
Press Release Summary:
PMA report shows that 31% of participants expect conditions to improve in the next 3 months and 50% predict activity will stay the same. Companies predicting that incoming orders will improve were up to 37%, with 21% anticipating a decrease in orders, while 32% of companies reported higher average shipping levels than 3 months ago. The number of companies reporting a portion of their workforce on short time or layoff was at 24%.
Original Press Release:
Business Conditions Report: May 2007
CLEVELAND, OH-May 18, 2007-According to the May 1, 2007, Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies anticipate a slight improvement in general business conditions and incoming orders during the next three months, but report more of their workers on short time or layoff as well as a decline in daily shipping levels. 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, 31% of participants reported that conditions will improve (up from 25% in April), 50% predict activity will remain the same (compared to 56% the previous month) and 19% anticipate a decline in business conditions (the same percentage reported in April).
Metalforming companies predict that incoming orders will improve slightly during the next three months. Thirty-seven percent of respondents forecast an increase in orders (up from 34% in April), 42% expect no change (compared to 46% last month) and 21% anticipate a decrease in orders (up from 20% in April).
However, current average daily shipping levels compared to the past three months dipped in May. Only 32% of companies reported that shipping levels are above levels of three months ago (down from 40% in April), 46% reported no change (compared to 40% in April) and 22% reported that May shipping levels are below levels of three months ago (compared to 20% the previous month).
The number of metalforming companies with a portion of their workforce on short time or layoff climbed to 24% in May, compared to 20% in April and 16% in March.
"The May report reflects continued uncertainty in many of the markets supplied by metalforming companies," said PMA President Bill Gaskin. "Automotive and housing-related industries are likely to remain soft through the summer with modest improvement in the third quarter."
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.
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
