PMA releases Business Conditions Report for Sept 2012.September 21, 2012 -
According to PMA's September 2012 Business Conditions Report, metalforming companies expect a slight uptick in business during next 3 months. Report shows that 24% of participants anticipate that economic activity will improve, up from 23% in August, and 32% anticipate increase in orders, compared to 29% in August. In addition 22% of participants report that shipping levels are above levels of 3 months ago, up from 17% in August.
Business Conditions Report: September 2012
Precision Metalforming Association, Custom Roll Forming Institute Div.
6363 Oak Tree Blvd.
Independence, OH, 44130
Press release date: September 13, 2012
CLEVELAND, OH—According to the September 2012 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect a slight uptick in business conditions during the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 136 metalforming companies in the United States and Canada.
The September report shows that 24% of participants anticipate that economic activity will improve during the next three months (up from 23% in August), 51% predict that activity will remain unchanged (up from 46% last month) and 25% report that activity will decline (compared to 31% in August).
Metalforming companies also expect a slight increase in incoming orders during the next three months, with 32% anticipating an increase in orders (compared to 29% in August), 37% forecasting no change (down from 40% last month) and 31% predicting a decrease in orders (the same percentage reported in August).
Average daily shipping levels improved modestly in September. Twenty-two percent of participants report that shipping levels are above levels of three months ago (up from 17% in August), 38% report that shipping levels are the same as three months ago (compared to 43% in August), and 40% report a decrease in shipping levels (the same percentage reported last month).
The percentage of metalforming companies with a portion of their workforce on short time or layoff increased to 15% in September, up from 13% in August. The September figure is higher than it was one year ago when only 12% of metalformers reported workers on short time or layoff.
“After several months of flat or modestly negative expectations for new orders and shipments, PMA’s manufacturing member companies have moved to a slightly more positive outlook as Q-3 draws to a close,” said William E. Gaskin, PMA president. “During the first four or five months of 2012, the average metalforming company reported that orders and shipments, year-over-year, were growing at the rate of approximately 10% and 12%, respectively, compared to 2011. During the summer, modest contraction in orders and shipments in many sectors (excluding automotive) reduced growth to approximately 8% year-over-year. With significant economic uncertainty being exacerbated by the upcoming presidential elections, it is expected that the balance of 2012 will continue to show single-digit growth compared to 2011, as we look ahead to Q-4.”
The monthly Business Conditions Report has been conducted by PMA since 1979. Full report results are available at http://www.pma.org/public/business_reports/pdf/BCREP.pdf. PMA is the full-service trade association representing the $113-billion metalforming industry of North America—the industry that creates precision metal products using stamping, fabricating, spinning, slide forming and roll forming technologies, and other value-added processes. Its nearly 900 member companies also include suppliers of equipment, materials and services to the industry. PMA leads innovative member companies toward superior competitiveness and profitability through advocacy, networking, statistics, the PMA Educational Foundation, FABTECH and METALFORM tradeshows, MetalForming magazine and Fabricating Product News.