Metal Formers Expect Little Change in Economic Activity in the Next Three Months

Metalforming companies expect business conditions to remain unchanged during the next three months, according to the August 2022 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report provides an economic indicator for the next three months of manufacturing, sampling 112 metalforming companies in the United States and Canada.

PMA’s August report shows that 52% of metalforming companies anticipate no change in general economic activity in the next three months (compared to 48% in July), 11% forecast an increase in activity (decreasing from 15% in July) and 37% predict a decrease in activity (the same percentage reported last month).

The report also showed little change in expectations for incoming orders, with 17% of survey respondents forecasting an increase in incoming orders during the next three months (compared to 20% in July), 49% predicting no change (compared to 48% last month) and 34% anticipating a decrease in orders (compared to 32% in July).

Current average daily shipping levels dropped for the fourth consecutive month, with 30% of respondents reporting a decrease (increasing from 28% in July), 51% reporting no change (compared to 44% last month) and only 19% reporting an increase (decreasing from 28% in July).

“While PMA’s August Business Conditions Report shows little change in overall conditions, metalformers report a drop in daily shipping levels for the fourth straight month,” said PMA President David Klotz. “This reflects continued supply-chain challenges throughout the manufacturing sector. PMA’s advocacy team in Washington, D.C., continues to press our elected leaders and policymakers to act. PMA recently lobbied successfully for the inclusion of more than $800 million for “Mfg USA Institutes,” and tripled the funding for Manufacturing Extension Partnerships in the CHIPS and Science Act of 2022 passed by Congress this month. These are the types of programs that will help keep manufacturing in the United States and help the sector grow.”

Lead times improved with only 21% of metalforming companies reporting an increase in lead times in August, compared to 23% in July. Four percent of companies had a portion of their workforce on short time or layoff in August (the same percentage reported in July), while 65% of companies are currently expanding their workforce (compared to 70% last month).

Full report results are available at https://www.pma.org/public/business_reports/pdf/BCREP.pdf.

Subscribe to learn the latest in manufacturing.