Metalforming manufacturers’ forecast for general economic activity during the next three months dipped this month, according to the August 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 103 metalforming companies in the United States and Canada.
PMA’s August report shows that 47% of the manufacturers responding to the survey expect no change in economic activity (down from 61% last month), 38% anticipate a decrease in activity in the next three months (compared to 27% in July), and 15% predict an increase in activity (compared to 12% in July).
Metalformers’ forecast for incoming orders was little changed from the previous month, with 26% of survey respondents expecting an increase in orders during the next three months (compared to 24% in July), 46% predicting no change in orders (compared to 52% last month) and 28% anticipating a decrease increase in orders (compared to 24% in July).
Current average daily shipping levels in the August survey were unchanged from the previous month with 48% of survey respondents reporting no change in shipping levels (compared to 46% in July), 40% reporting a decrease in levels (the same percentage reported in July) and 12% reporting an increase in levels (down from 14% last month).
The survey also showed that 10% of respondents reported a portion of their workforce on short time or layoff in August (double the 5% reported in July), while only 30% reported that they are currently expanding their workforce (down from 39% last month). Six percent of metalforming companies reported an increase in lead times in August (compared to 11% in July).
“The August report shows that metalforming manufacturers are facing similar economic headwinds as businesses in other segments of the manufacturing sector,” said David Klotz, PMA president. “In fact, the survey shows that metalformers have shown their resiliency relative to other industries, but it’s clear that our members are also facing challenging market conditions. The failure of Congress to date to pass the Tax Relief for American Families and Workers Act that that would have reinstated R&D expensing and bonus depreciation continues to be a missed opportunity to help boost the sector. PMA encourages the Senate to take up the bill again after the August recess.”
Full report results are available at https://www.pma.org/public/business_reports/pdf/BCREP.pdf.
About PMA
PMA is the full-service trade association representing the $137-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 more than 900 member companies also include suppliers of equipment, materials and services to the industry. PMA leads companies toward superior competitiveness and profitability through advocacy, networking, statistics, the PMA Educational Foundation, FABTECH tradeshows and MetalForming magazine.
