Economic forecast by metal forming companies reflects volatile market

Metal forming companies’ forecast for economic activity over the next three months remained consistent from the previous month, with some manufacturers continuing to express optimism but others predicting headwinds, according to the March 2023 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report provides an economic indicator for the next three months of manufacturing, sampling 114 metal forming companies in the U.S. and Canada.

The March report shows that 23% of metal forming companies predict an increase in general economic activity in the next three months (compared to 18% in February), 53% expect no change in activity (compared to 63% last month), and 24% anticipate a decrease in activity (up from 19% in February).

Metal formers also forecast a slight decline in incoming orders, with 31% of survey respondents expecting an increase in incoming orders during the next three months (compared to 38% in February), 45% anticipating no change (compared to 40% last month), and 24% predicting a decrease in orders (compared to 22% in February).

Metal forming companies also reported little change in shipping levels in March. Thirty-two percent of respondents reported an increase in shipping levels (compared to 30% in February), 44% reported no change (compared to 45% last month), and 24% reported a decrease (down from 25% in February).

Lead times remained steady in March, with 12% of metal forming companies reporting an increase in lead times (compared to 11% in February). Seven percent of companies had a portion of their workforce on short time or layoff in March (decreasing from 8% in February), while 52% of companies are currently expanding their workforce (compared to 47% last month).