According to the June 2007 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect general business to soften over the next three months, even though current production levels rose slightly with fewer companies reporting workers on short time or layoff. A monthly report used as an economic indicator for manufacturing, sampling 157 metalforming companies in the United States and Canada.
When asked what they expect the trend in general economic activity to be over the next three months, 23% of participants reported that conditions will improve (down from 31% in May), 52% predict activity will remain the same (compared to 50% the previous month) and 25% anticipate a decline in business conditions (up from 19% in May).
Metalforming companies also expect that incoming orders will dip slightly during the next three months. Thirty-six percent of respondents forecast an increase in orders (down from 37 percent in May), 39 percent expect no change (compared to 42% last month) and 26 percent anticipate a decrease in orders (up from 21 percent in May).
On the plus side, current daily shipping levels compared to the past three months improved in June. Thirty-seven percent of respondents reported shipping levels higher then those of three months ago (up from 32 percent in May).
The number of metalforming companies with a portion of their workforce on short time or layoff dropped significantly in June to 14 percent. Much lower than the 24 percent reported in May, and is the lowest since September 2006 when 13 percent was reported having workers on short time or layoff.
“Metalforming companies continue to reflect lower production levels among domestic automobile manufacturers and continued softness in construction markets,” observed William E. Gaskin, president of PMA. “June data also reflects a normal seasonal pattern in manufacturing as summer vacations, model changeovers and routine maintenance impact order volumes and the sales cycle.”
The monthly Business Conditions Report has been conducted by PMA since 1979. Full report results are available at www.pma.org.
SOURCE Precision Metalforming Association
Nicole Camiola
New Equipment Digest
Online Content Editor