PMA releases May 2008 Business Conditions Report.
Press Release Summary:
According to report, metalforming companies expect little change in business conditions during next 3 months. While 14% of participants report that activity will improve, 36% predict decline in business conditions, and 50% expect activity to remain the same. Twenty-four percent of companies forecast increase in orders from April, while 46% anticipate no change, and 30% expect decrease. Number of companies with portion of workforce on short time or layoff improved slightly.
Original Press Release:
Business Conditions Report: May 2008
CLEVELAND, OH- May 27, 2008-According to the May 2008 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect little change in business conditions during the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 149 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 remain virtually the same. Fourteen percent of participants report that activity will improve (the same percentage as April), 36% predict a decline in business conditions (up from 34% in April) and 50% expect activity to remain the same (compared to 52% the previous month).
Metalforming companies also expect little change in incoming orders during the next three months. Twenty-four percent of companies forecast an increase in orders (down from 25% in April), 46% anticipate no change (up from 41% last month) and 30% expect a decrease in orders (compared to 34% in April).
Current average daily shipping levels declined in May. Thirty-six percent of participants report that shipping levels are below levels of three months ago (up from 32% in April), 44% report no change (up from 39% last month) and only 20% report that shipping levels are above levels of three months ago (compared to 29% in April).
The number of metalforming companies with a portion of their workforce on short time or layoff improved slightly in May. Twenty-two percent of companies report having a portion of their workforce on short time or layoff in May, down from 25% in April.
"Metalforming companies, especially those supplying the automotive, home building and appliance industries, are under severe pressure from declining orders and record prices for steel and other flat-rolled metals, which are their primary input cost," says William E. Gaskin, PMA president. "On top of these challenges, unique situations like the prolonged strike by workers at American Axle have caused many companies to suffer lost orders that impact their bottom line. Higher operating costs must be passed on to customers, as margins are already thin," Gaskin observed.
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 Americaa in 41 states of the United States as well as Canada and Mexico.
