PMA releases Business Conditions Report for August 2008.
Press Release Summary:
According to the August 2008 PMA Business Conditions Report, metalforming companies anticipate little change in business conditions during the next 3 months. Of 147 companies responding, 29% report that activity will improve in that time, while 19% report that shipping levels are above levels of 3 months ago. While 29% of companies predict an increase in orders, the number of companies with a portion of their workforce on short time or layoff climbed to 25% in August.
Original Press Release:
Business Conditions Report: August 2008
CLEVELAND, OH - August 14, 2008 - According to the August 2008 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies anticipate little change in business conditions during the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 147 metalforming companies in the United States and Canada.
When asked what the trend in general economic activity will be during the next three months, metalformers expect a slight improvement. Twenty percent of participants report that activity will improve (up from 17% in July), 52% predict activity will remain unchanged (compared to 48% last month) and 28% forecast a decline in business conditions (down from 35% in July).
Current average daily shipping levels remained virtually unchanged in August. Nineteen percent of participants report that shipping levels are above levels of three months ago (the same percentage reported in July), 42% report no change (up from 40% last month) and 39% report that shipping levels are below levels of three months ago (compared to 41% in July).
Metalforming companies also expect little change in incoming orders during the next three months. Twenty-nine percent of companies predict an increase in orders (up from 27% in July), 42% anticipate no change (down from 43% the previous month) and 29% forecast a decrease in orders (compared to 30% in July).
However, the number of metalforming companies with a portion of their workforce on short time or layoff climbed to 25% in August compared to 17% in July.
"Metalforming companies anticipate unusually soft incoming orders for the next three months and hold lower than normal expectations for general economic conditions," according to William E. Gaskin, PMA president. "PMA's August Business Conditions Report, based on data gathered the first week of August, normally documents higher expectations for improved orders, shipments and general economic conditions as summer vacations wind down and production picks up for the fall," he observed, "but this year appears to be softer than normal, with reduced volumes for suppliers to the automotive, appliance and home-building industries."
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.
