Metal formers express optimism for improvement in economic activity, says report

Metal forming companies anticipate an improvement in economic activity in the next three months, according to the February 2023 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report provides an economic indicator for the next three months of manufacturing, sampling 111 metal forming companies in the U.S. and Canada.

The February report shows that 18% of metal forming companies predict an increase in general economic activity in the next three months (compared to 11% in January), 63% expect no change in activity (compared to 59% last month), and 19% anticipate a decrease in activity (down from 30% in January).

Metal formers also forecast an improvement in incoming orders, with 38% of survey respondents expecting an increase in incoming orders during the next three months (compared to 25% in January), 40% anticipating no change (compared to 49% last month), and 22% predicting a decrease in orders (compared to 26% in January).

Following four straight months of decline, metal forming companies reported a spike in current average daily shipping levels in February. Thirty percent of respondents reported an increase in shipping levels (compared to 15% in January), 45% reported no change (compared to 42% last month), and 26% reported a decrease (down from 43% in January).

Lead times increased slightly in February, with 11% of metal forming companies reporting an increase in lead times (compared to 7% in January). Eight percent of companies had a portion of their workforce on short time or layoff in February (increasing from only 2% in January), while 47% of companies are currently expanding their workforce (compared to 48% last month).