PMA releases Business Conditions Report for Sept 2008.
Press Release Summary:
According to Sept 2008 PMA Business Conditions Report, metalforming companies expect business conditions to weaken somewhat during next 3 months. Only 16% of participants report that activity will improve, while 53% predict activity will remain unchanged, and 31% forecast decline. Companies also expect drop in incoming orders during next 3 months. Number of metalforming companies with portion of workforce on short time or layoff increased to 26% in Sept, up from 25% in Aug.
Original Press Release:
Business Conditions Report: September 2008
CLEVELAND, OH - September 19, 2008 - According to the September 2008 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect business conditions to weaken somewhat during the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 164 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 anticipate a slight decline. Only 16% of participants report that activity will improve (down from 20% in August), 53% predict activity will remain unchanged (compared to 52% last month) and 31% forecast a decline in business conditions (up from 28% in August).
Metalforming companies also expect a drop in incoming orders during the next three months. Thirty-two percent of companies anticipate a decrease in orders (up from 29% in August), 41% expect no change (down from 42% the previous month) and 27% forecast an increase in orders (compared to 29% in August).
Current average daily shipping levels remained steady in September. Twenty percent of participants report that shipping levels are above levels of three months ago (up from 19% reported in August), 42% report no change (the same percentage reported last month) and 38% report that shipping levels are below levels of three months ago (compared to 39% in August).
The number of metalforming companies with a portion of their workforce on short time or layoff increased to 26% in September - up from 25% in August and at its highest level since July 2003 when 28% of companies reported workers on short time or layoff.
"Increased economic uncertainty in the credit and financial markets are having an impact on PMA members, giving them less confidence that there will be any rebound in orders and shipments in the 4th quarter," said William E. Gaskin, PMA president. "Automotive, housing-related and appliance markets are all projecting lower production levels for the months ahead. While there are pockets of business growth, especially in lower volume production using fabricating and laser technologies, many longer-run production companies are anticipating a very soft 4th quarter," he continued.
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.
