PMA releases January Business Conditions Report.

Press Release Summary:



According to January 2008 report, metalforming companies expect business conditions to remain steady over next 3 months despite low current shipping levels. Thirty-one percent of companies predict increase in orders, 44% anticipate no change, and 25% forecast decrease in orders. Only 13% of companies reported that shipping levels are above 3 months ago, while 43% reported no change, and 44% reported that January shipping levels are below levels of 3 months ago.



Original Press Release:



Business Conditions Report: January 2008



CLEVELAND, OH-January 24, 2008-According to the January 2008 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect business conditions to remain steady over the next three months despite low current shipping levels. Conducted monthly, the report is an economic indicator for manufacturing, sampling 159 metalforming companies in the United States and Canada.

When asked what they expect the trend in general economic activity to be over the next three months, 20% of participants reported that conditions will improve, 50% anticipate activity will remain the same and 30% expect a decline in business conditions. These same percentages were reported in December 2007.

Metalforming companies also expect little change in their incoming orders over the next three months. Thirty-one percent of companies predict an increase in orders (down from 33% in December), 44% anticipate no change (compared to 37% last month) and 25% forecast a decrease in orders (down from 30% in December).

However, current average daily shipping levels plummeted in January to their lowest levels since January 2002. Only 13% of companies reported that current shipping levels are above levels of three months ago (compared to 24% in December), 43% reported no change (the same percentage reported last month) and 44% reported that January shipping levels are below levels of three months ago (up from 33% in December).

The number of metalforming companies with a portion of their workforce on short time or layoff fell to 14% in January, down from 18% in December.

"PMA member companies are reflecting overall economic uncertainty in their projections for the first quarter of 2008, especially compared to their outlook one year ago, in January 2007, which was decidedly more positive than it is today," observed William E. Gaskin, PMA president. "While daily shipping levels at year-end fell sharply, expectations for incoming new orders over the next three months remain positive, with 75 percent expecting higher or at least similar levels of customer orders as received in the fourth quarter of 2007. Profits in 2008 will be challenged by constant price pressure from customers and rising steel and energy costs," 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.

Contact:
Christie Carmigiano
Government, Safety & Public Affairs Manager
Precision Metalforming Association
Phone: 216/901-8800
Fax: 216/901-9190
E-mail: ccarmigiano@pma.org
Web site: www.pma.org

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