Metalforming companies are projecting higher capital expenditures in 2007, according to the 2007 Precision Metalforming Association (PMA) Capital Spending Report. Conducted annually, the report is a forecast of manufacturer’s plans for capital investment, sampling 81 metalforming companies in the United States and Canada.

Forty-six percent of responding companies anticipate that their 2007 capital expenditures will be higher than they were in 2006, 22 percent report that their 2007 budgets are unchanged compared to actual 2006 expenditures, and only 28 percent indicate that their capital spending budgets are lower for 2007 than 2006.

On average, companies plan to spend $792,616 on capital expenditures this year, a nine percent increase from the $717,692 spent in 2006. Strong investments are forecasted in automation, controls, mechanical presses, press-safety equipment, robotics, software, toolroom equipment and welding equipment. 

The largest share of metalformers share of spending will be early in the year, as $25.4 million is projected to be spent in the first and second quarters compared to $24.3 million forecasted for the third and fourth quarters.

PMA is the full-service trade association representing the $41-billion metalforming industry of North America—the industry that creates precision metal products using stamping, fabricating and other value-added processes.  Its nearly 1200 member companies include metal stampers, fabricators, spinners, slide formers and roll formers as well as suppliers of equipment, materials and services to the industry.  Members are located in 30 countries, with the majority found in North America--in 41 states of the United States as well as Canada and Mexico.