PMA release April 2008 Business Conditions Report.
Press Release Summary:
According to April 2008 PMA Business Conditions Report, metalforming companies expect business conditions to weaken during next 3 months. Only 14% of participants reported that activity will improve, while 34% predict decline in business conditions, and 52% expect activity to remain the same. Metalforming companies also noted slightly lower average daily shipping levels, and expect incoming orders to trend downward over next 3 months.
Original Press Release:
Business Conditions Report: April 2008
CLEVELAND, OH - April 29, 2008-According to the April 2008 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect business conditions to weaken during the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 154 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 a slight decline. Only 14% of participants reported that activity will improve (down from 19% in March), 34% predict a decline in business conditions (up from 31% in March) and 52% expect activity to remain the same (compared to 50% the previous month).
Metalforming companies also expect incoming orders to trend downward over the next three months. Thirty-four percent of companies forecast a decrease in orders (up from 28% in March), 41% anticipate no change (down from 42% last month) and only 25% expect an increase in orders (compared to 30% in March).
Current average daily shipping levels were slightly lower in April as well. Thirty-two percent of participants reported that current average daily shipping levels are below levels of three months ago (up from 24% in March), 39% reported no change (down from 46% last month) and 29% reported that shipping levels are above levels of three months ago (compared to 30% in March).
The number of metalforming companies with a portion of their workforce on short time or layoff spiked to 25% in April, up from 19% in March and at the highest level since July 2003 when companies reported 28% of their workforce being on short time or layoff.
"Metalforming companies are faced with multiple issues that are negatively impacting their outlook," comments William E. Gaskin, PMA president. "Not only are major customer markets, including automotive, homebuilding and construction, all contracting, but the labor strikes at American Axle have caused numerous automotive assembly plants to be idled, resulting in canceled orders for stampings and assemblies. Economic damage from rapidly escalating steel prices also is widespread and negatively impacts the outlook for the next three months."
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.
