PMA releases June Business Conditions Report.
Press Release Summary:
According to June 2008 Business Conditions Report, metalforming companies do not anticipate improvement in business conditions in next 3 months and expect little change in incoming orders. Forty-one percent of participants report that shipping levels are below levels of 3 months ago, while 40% report no change. Number of metalforming companies with portion of workforce on short time or layoff remained virtually the same in June at 23%.
Original Press Release:
Business Conditions Report: June 2008
CLEVELAND, OH-June 23, 2008-According to the June 2008 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies do not anticipate improvement in business conditions in the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 143 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 conditions to dip slightly. Just 12% of participants report that activity will improve (down from 14% in May), 38% forecast a decline in business conditions (up from 36% in May) and 50% anticipate activity will remain unchanged (the same percentage as the previous month).
Metalforming companies also expect little change in incoming orders during the next three months. Twenty-two percent of companies predict an increase in orders (down from 24% in May), 44% anticipate no change (down from 46% last month) and 34% expect a decrease in orders (compared to 30% in May).
Current average daily shipping levels continued to decline in June. Forty-one percent of participants report that shipping levels are below levels of three months ago (up from 36% in May), 40% report no change (down from 44% last month) and only 19% report that shipping levels are above levels of three months ago (compared to 20% in May).
The number of metalforming companies with a portion of their workforce on short time or layoff remained virtually the same in June. Twenty-three percent of companies reported having a portion of their workforce on short time or layoff in June, up from 22% in May. June 2008 levels are much bleaker than June 2007 levels, when only 14% of companies had part of their workforce on short time or layoff.
"Business conditions in the metalforming industry are tough right now," observed William E. Gaskin, PMA president. "Steel prices have doubled over the past five months, high gas prices have the automotive industry restructuring rapidly and consumers are short of cash and credit, causing a pullback in housing, appliances and other markets. Expectations of PMA members for the next three months reflect these challenges, so their businesses will plateau at reduced levels over the summer, with the hope that the fall will show improvement."
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.
