CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

LATEST MAGAZINE

CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

Supply chain problems continue to plague metalformers

Share This Post

Ongoing supply chain challenges are taking a bite out of metalformers’ business projections for the next three months.

North American metalforming companies forecast a slight decline in business conditions during the next three months as supply-chain challenges continue to affect the manufacturing industry, according to the March 2022 Precision Metalforming Association (PMA) Business Conditions Report.

Prepared monthly, the report provides an economic indicator for manufacturing, sampling 109 metalforming companies in the United States and Canada.

PMA’s March report shows that only 24% of metalforming companies expect an increase in general economic activity in the next three months (decreasing from 32% in February), 58% anticipate no change in activity (the same percentage reported last month) and 18% predict a decrease in activity (compared to 10% in February).

Forty-three percent of respondents reported an increase in lead times, slightly down from 46% in February. Metalformers also forecast a dip in incoming orders in the next three months, with 37% expecting an increase in orders (compared to 42% in February), 46% predicting no change (compared to 50% last month) and 17% anticipating a decrease in orders (compared to 8% in February).

At the same time, none of the responding metalforming companies had a portion of their workforce on short time or layoff in March, compared to two percent in February. Seventy-seven percent of respondents reported that they are currently expanding their workforce.

“The March PMA Business Conditions Report reflects the fact that PMA members, like other manufacturers, are facing unprecedented challenges in obtaining the materials they need to meet customer demand due to strains on the global supply chain,” said PMA President David Klotz. “Members are reporting problems in sourcing steel, aluminum and red metals. In fact, as a result of the Russia-Ukraine war and economic sanctions, members are reporting massive price spikes and availability issues for nickel. At the same time, members continue to face challenges finding workers.”

Current average daily shipping levels remained fairly steady in March, with 41% of survey respondents reporting an increase (compared to 45% in February), 48% reporting no change (compared to 44% last month) and 11% reporting a decrease (the same percentage reported in February).

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. Its more than 850 member companies also include suppliers of equipment, materials and services to the industry.

 

Share This Post

 

Recent Articles




Wordpress Social Share Plugin powered by Ultimatelysocial
error

Enjoy this post? Share with your network