PMA releases Dec 2011 Business Conditions Report.
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Press Release Summary:
According to Business Conditions Report, 33% of metalforming participants expect economic activity to improve during next 3 months, up from 11% in November, and only 10% report that activity will decline, down from 28% in November. Report also shows that 40% of metalforming companies expect increase in incoming orders during next 3 months, up from 21% in November. Percentage of companies with portion of workforce on short time or layoff declined to 12% in December, down from 17% in November.
Original Press Release:
Business Conditions Report: December 2011
CLEVELAND, OH - According to the December 2011 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies predict a spike in business conditions during the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 129 metalforming companies in the United States and Canada.
The December report shows that 33% of participants expect economic activity to improve during the next three months (up sharply from 11% in November), 57% predict that activity will remain unchanged (compared to 61% last month) and only 10% report that activity will decline (down from 28% in November).
Metalforming companies also expect a significant increase in incoming orders during the next three months, with 40% anticipating an increase in orders (up from only 21% in November), 48% forecasting no change (compared to 49% last month) and 12% predicting a decrease in orders (down from 30% in November).
Average daily shipping levels remained steady in December. Twenty-five percent of participants report that shipping levels are above levels of three months ago (down from 27% in November), 44% report that shipping levels are the same as three months ago (compared to 47% last month), and 31% report a decrease in shipping levels (compared to 26% in November).
The percentage of metalforming companies with a portion of their workforce on short time or layoff declined to 12% in December, down from 17% in November. This number is lower than December 2010, when companies reported 16% of their workforce on short time or layoff.
"Current orders and shipments for PMA member companies have slowed modestly during Q-4," said William E. Gaskin, PMA president. "However, year-to-date through October, the typical member company is still up 8% in new orders and 12% in shipments. The December Business Conditions Report supports the expectation that member companies believe their customers will ramp up production after the holidays, and that 2012 will be a year with modest continued growth for manufacturers."
The monthly Business Conditions Report has been conducted by PMA since 1979. Full report results are available at 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 1,000 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, and MetalForming magazine.
