PMA releases business conditions report for November 2007.
Press Release Summary:
According to the November 2007 PMA Business Conditions Report, metalforming companies expect a significant decline in business conditions during the next 3 months. Metalforming companies also expect incoming orders to dip during the next 3 months, but current average daily shipping levels compared to the past 3 months have remained steady. The number of metalforming companies with a portion of their workforce on short time or layoff increased to 13%.
Original Press Release:
Business Conditions Report: November 2007
CLEVELAND, OH - November 19, 2007 - According to the November 2007 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect a significant decline in business conditions during the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 145 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 15% of participants reported that conditions will improve (down from 24% in October), 47% anticipate activity will remain the same (down from 53% the previous month) and 38% forecast a decline in business conditions (up from 23% in October).
Metalforming companies also expect incoming orders to dip during the next three months. Only 26% of respondents predict an increase in orders (down from 34% in October), 36% expect no change (compared to 41% last month) and 38% anticipate a decrease in orders (up from 25% in October).
Despite this, current average daily shipping levels compared to the past three months remained steady in November. Thirty-two percent of companies reported that shipping levels are above levels of three months ago (compared to 27% in October), 38% reported no change (down from 44% in October) and 30% reported that November shipping levels are below levels of three months ago (up from 29% in October).
The number of metalforming companies with a portion of their workforce on short time or layoff increased to 13% in November, up from the eight percent reported in October but still below the November 2006 level (16%).
"PMA members are growing increasingly cautious about the general economic health of the United States, according to our November Business Conditions Report," observed William E. Gaskin, PMA president. "However, they are still reporting fairly strong current shipments which, according to PMA's monthly orders and shipments report, were running an average of 10 percent higher than 2006 for the first nine months of 2007. Their outlook for incoming orders for the next three months is down, a typical year-end pattern that factors in lower business expectations for the December holidays."
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
