Metal forming companies continue to predict slowing economic activity

Metal forming companies continue to predict declining business conditions in the coming months, according to the October 2023 Precision Metalforming Association (PMA) Business Conditions Report. The monthly report provides an economic indicator for the next three months of manufacturing, sampling 110 metal forming companies in the U.S. and Canada.

After a significant increase in the number of metal forming companies anticipating a decline in economic activity in September, PMA’s October report shows that 54% of metal forming companies expect a decrease in general economic activity in the next three months (a small increase compared to 50% in September), 36% predict no change in activity (compared to 42% in September), and 10% forecast an increase in activity (up from 8% last month).

Metal formers also anticipate little change in incoming orders, with 48% of survey respondents expecting a decrease in orders during the next three months (compared to 47% in September), 35% predicting no change (compared to 34% last month), and 17% forecasting an increase in orders (compared to 19% in September).

Current average daily shipping levels dipped in October, with 15% of responding companies reporting an increase in shipping levels (compared to 23% in September), 40% reporting no change (compared to 42% last month), and 45% reporting a decrease in shipping levels (up from 35% in September).

Twelve percent of metal forming companies reported an increase in lead times in October (compared to only 6% in September). Seven percent of companies had a portion of their workforce on short time or layoff in August (decreasing from 8% in September), while 42% of companies are currently expanding their workforce (compared to 40% last month).