North America’s metalformers expressing continued concern about business conditions
- June 23, 2022
The June 2022 Precision Metalforming Association (PMA) Business Conditions Report showed an increase in the percentage of metalforming companies expecting a decline in business conditions, the third straight decline since April.
Prepared monthly, the report provides an economic indicator for the next three months of manufacturing, sampling 107 metalforming companies in the United States and Canada.
PMA’s June report shows that 35% of metalforming companies forecast a decrease in general economic activity in the next three months (increasing from 21% in May), 50% anticipate no change in activity (compared to 63% in May) and 15% predict an increase in activity (compared to 16% last month).
The report also showed a decline in predictions for incoming orders, with 19% of survey respondents expecting an increase in incoming orders during the next three months (compared to 22% in May), 51% predicting no change (compared to 57% last month) and 30% anticipating a decrease in orders (compared to 21% in May).
Additionally, current average daily shipping orders dropped significantly in June, with 23% of respondents reporting a decrease (compared to only 9% in May), 41% reporting no change (compared to 45% last month) and 36% reporting an increase (decreasing from 46% in May).
“PMA’s June Business Conditions Report reflects the supply-chain disruptions that are impacting our members, particularly those who supply the auto industry,” said PMA President David Klotz. “There are bright spots though, with members who support the capital equipment industry and those who manufacture parts for the medical and appliance industries, for example, reporting high demand and brisk business activity. However, nearly all of our members report continued challenges in obtaining steel, aluminum and other raw materials, along with the inability to fill job openings. PMA members are looking forward to testifying next month at a hearing of the U.S. International Trade Commission on how the Section 232 steel and aluminum tariffs affected U.S. industries so that policymakers can hear firsthand the problems experienced by manufacturers trying to source steel and aluminum at globally competitive prices.”
Lead times remained fairly steady in June, with 36% of responding metalforming companies reporting an increase in lead times, compared to 34% in May. Only 2% of companies had a portion of their workforce on short time or layoff in June, up from 1% in May.
Full report results are available at https://www.pma.org/public/business_reports/pdf/BCREP.pdf.
PMA is the full-service trade association representing the $137-billion metalforming industry of North America—the industry that creates precision metal products using stamping, fabricating, spinning, slide forming and roll forming technologies, and other value-added processes. Its more than 900 member companies also include suppliers of equipment, materials and services to the industry.