Metalforming manufacturers expressed increased optimism heading into the new year, with more manufacturers predicting an increase in economic activity for the first quarter of 2025, according to the December 2024 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, PMA’s report provides an economic indicator for the next three months of manufacturing, sampling 96 metalforming companies in the United States and Canada.
PMA’s December report shows that 30% of the manufacturers responding to the survey predict an increase in economic activity in the next three months (up from 23% in November and 13% in October), 49% expect no change in activity (compared to 43% in October) and 21% anticipate a decrease in activity (down from 34% last month).
Metalformers also forecast an increase in incoming orders, with 34% of survey respondents forecasting an increase in orders during the next three months (compared to 30% in November), 47% predicting no change in orders (compared to 40% last month) and 19% anticipating a decrease in orders (down from 30% in November).
However, current average daily shipping levels in December dropped after rebounding in November, with 45% reporting a decrease in shipping levels (up from 33% in November), 39% reporting no change (compared to 41% last month) and 16% reporting an increase in levels (down from 26% in November).
The survey also showed that 12% of respondents reported a portion of their workforce on short time or layoff in December (down from 14% in November), while 24% reported that they are currently expanding their workforce (compared to 26% last month). Five percent of metalforming companies reported an increase in lead times in December, the same percentage reported in November.
“As we head into 2025, our members are feeling a sense of cautious optimism,” said David Klotz, president of the Precision Metalforming Association. “Metalformers are hopeful that a new Congress and Administration will prioritize important tax provisions including reinstating R&D expensing and restoring 100% bonus depreciation, reducing unnecessary regulations and fostering an environment that supports manufacturing growth. Members urge policymakers to consider the full supply chain when shaping trade and economic policies to ensure the continued strength and competitiveness of U.S. manufacturing.”
Full report results are available at https://www.pma.org/public/business_reports/pdf/BCREP.pdf.
