Report Relays Economic Optimism for metalforming market.
Press Release Summary:
According to the April 2009 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies are optimistic about business conditions. This report, conducted monthly, samples 155 US/Canadian metalforming companies and serves as an economic indicator for manufacturing. Nineteen percent of participants predict an improvement in overall economic activity, and 24% of companies forecast an increase in orders.
Original Press Release:
Business Conditions Report: April 2009
CLEVELAND, OH-April 14, 2009-According to the April 2009 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies are the most optimistic they have been about business conditions since last summer. Conducted monthly, the report is an economic indicator for manufacturing, sampling 155 metalforming companies in the United States and Canada.
Metalformers anticipate general economic activity will improve somewhat during the next three months. Nineteen percent of participants predict an improvement in overall economic activity (up from 13% in March), 54% expect that activity will remain unchanged (up from 39% last month) and only 27% reported that activity will decline (compared to 48% in March).
Metalforming companies also anticipate an improvement in incoming orders during the next three months. Only 31% predict a decrease in orders (down from 41% in March), 45% expect no change (compared to 35% the previous month), and 24% of companies forecast an increase in orders (the same percentage reported in March).
Current average daily shipping levels improved in April as well. Sixty-two percent of participants report that shipping levels are below levels of three months ago (compared to 73% in March), 26% report no change (up from 18% in March) and 12% report that shipping levels are above levels of three months ago (up from nine percent last month).
Despite metalformers' growing optimism, the number of metalforming companies with a portion of their workforce on short time or layoff increased to 85% in April, up from 76% in March.
"It is encouraging to see the first indications of improving business conditions from PMA's manufacturing members," said William E. Gaskin, PMA president. "However, it is important to note that recovery in metalforming markets will be slow, as indicated by expectations for incoming orders for the next three months. While 24% look for rising orders, 45% predict flat order books and nearly one-third (31%) still expect new orders to decline from current levels," Gaskin noted.
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, spinning, slide forming and roll forming technologies, and other value-added processes. Its nearly 1,100 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, METALFORM tradeshows and MetalForming magazine.
